Academic consolidation loanservices student

When do you require academic consolidation loan plan


As you are going through your academic career you must visualize your own transition phase. After your graduation and entering into a post grad life, your expenses increase- housing expense, car expense, moving to a new place among others. Can you take an additional burden of school loan repayment Student loan consolidation will take care of your headache and make it easier for you to control your expenses and even save!


What are the benefits of academic loan consolidation


Academic consolidation allows borrowers to merge all their previous loans into one new loan and pay only one monthly installment. Academic consolidation loans even permits both parents and students to combine the borrowing into lower interest rated loan, thus simplifying repayment procedure. The repayment facilities can be spread across longer period of time, say, 20 to 30 years to make the repayment in easy monthly installments. Education loans have a lower rate of interest. Once you go for a consolidation academic loanscheme you have an advantage because you can further take loan in spite of your previous liabilities.


What is the role of a professional counselor


There are different repayment options. But you must take help of a counselor who can underline the options for your particular case. Only a professional loan consolidation counselor is eligible to provide you the service.


What is Direct Loan Consolidation


Often a student has to face looming debt burden two ways: he may find it difficult pay his monthly installments because of high interest. He may not do away with it till he completes his post graduate education. So why not go for a Direct Student Loan Consolidation. In simple terms, it means exchanging your existing loans with a high interest for one more manageable fixed interest rate. Direct Student Loan Consolidation is especially useful when you default in paying your monthly installments in your student loan. Direct Student Loan is considered as a new loan. As you consolidate your student loans your previous loans will show as paid off on your credit card. Thus your credit rate will increase.


There are four types of loans


1. Standard Repayment Plan


The above plan will allow you to make your repayments spread over 10 years


2. Extended Repayment Plan


Under this plan you have time up to 30 years to repay your loan. Thus you need to pay only a small amount of monthly installment. But remember, the longer is the payment mode, the larger is the interest payment.


3. Graduated repayment Plan


This plan is designed to give you time from 12 to 30 years. However, your repayment amount will increase every two years.


4. Income Contingent Repayment Plan


The repayment plan is spread over 25 years. When you are in a job, the plan is scheduled to pay on your gross annual income.


A Direct Loan Consolidation Plan is not a good choice if you are very near to paying off your student loan. But, when you still have quite a few years to pay off your student loan, a consolidation plan will bring you two good things: you pay reasonable interest over long term and your credit rating will increase.


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