Consolidation loan service student

Student loan consolidation combines all the loans into a single loan. The monthly payment is considerably reduced. This is a pragmatic repayment tool.


Federal Student loan consolidation

Federal student loan consolidation is a good tool to handle the finances. There are long term advantages and it offers instantaneous payment relief. This is a fixed rate refinancing program. The application can be completed within just few minutes due to the speedy and convenient eSignature. There is no need of any credit checks, application charges or fees. The interest rate is decreased by 0.6 percent by consolidation in the grace period. The credit rating is improved. The monthly student loan payment is decreased by almost 50 percent.


The prime advantage is that the federal school loans are combined into one single consolidated loan. The repayment term can be increased from the standard span of 10 years up to 30 years. This depends upon the quantity of the education debts. As the monthly payment is lowered, the student has more money for other living expenses like the housing expenditure, car payments and career concerned essentialities. Whenever the student can afford, he can make larger payments. It must be remembered that there is no penalty for overpayment. Due to these larger payments, the repayment term can be reduced. The Federal loan consolidation can include the Direct loans, Federal FFELP, HEAL loans and Perkins loans that have been taken to fund the education. If the federal loans are consolidated into a private loan consolidation, the person would lose all the benefits of federal loan.


Private Student loan consolidation

In private student loan consolidation, all the private student debts are combined into a single easily managed loan. This does not have any application fees or prepayment penalties. There is a reduction on the interest rate by 0.25 percent for automatic checking account withdrawal. The monthly payment is decreased by around 45 percent during the first year. Within a matter of minutes, there is a conditional pre-approval decision by phone or online. If the application is made along with a qualified co-signer, then the possibility of approval is raised. In case the co-signer has a good credit, this would be helpful to procure a better interest rate. There is also a co-signer release program. As per this program, the applicant may remove the co-signer at the end of 48 payments done on time. The college graduates that have existing and nationally marked private student loans are eligible for this sort of consolidation.


Example of private loan consolidation

If the loan amount is $30,000, then the assumed current payment would be $289.11. The monthly payment during the first year would be $158.22. This results in a monthly savings of $130.89. In case the loan amount is $50,000, then the assumed current payment would be $482.85. The monthly payment during the first year would be $263.69. The result is that the monthly savings are $218.16. Similarly, the assumed current payment would be $722.77 for a loan amount of $75,000. The monthly payment during the first year is $395.54. Thus, the monthly savings are $395.54.


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