Student loan consildation
The student loans consolidation is very beneficial for students who want to build their career. With everything touching height, affording college fees can also be a very taxing and expensive ordeal. Most of the students don't have the amount to pay their college fees and would opt for student loans.
Most of the colleges give out student loans and students avail these loans to meet their expenses.But when the time comes to pay back these loans then the real problem starts.Paying back the student loan can be a big burden for the student and can act as a diversion to the career of the student.But before you sign up for a student loan consolidation you should know how to get the best consolidation rate. You are required to have knowledge about the rate of the loan and how can you benefit from the plan.If you are exhausted of paying the monthly bills that seem to be never ending then you can apply for a student loan consolidation.
Why to take a student loan consolidation
When the student had applied for loans from various institutions then the loan providers would have given out the loans at different interest rates and the pay back terms of these loans would also be different.With a student loan consolidation you can club all your payments into a single monthly payment. A student loan consolidation would take the various student loans that you would have taken and put them into one easy payment. You would have to pay only one payment instead of the several payments that you would make towards the various loan programs. This would save your time as well as your money and you could enjoy a lower interest rate.
To get the best student loan option you should have a very good credit.If you have a credit score also called as the FICO more than the 660 mark then it is easy for you to qualify for a student loan consolidation program. You can get to know about your credit score by doing a simple Internet search. The first step to get a student loan consolidation is to know about your credit score. If you know this you can get the best offer for your student loan consolidation.
The interest rate for the student loan consolidation is different for different people. The loan rate depends on your credit situation and also on the loan amount that is remaining to be paid. But if you have a credit score less than 600 then getting a student loan consolidation can be a challenging task.
Benefit of taking student loan consolidation
With a student loan consolidation there are some aspects that you can consider.
Lower monthly payments- based on your present student loan condition and the lender that you choose to deal with can help you lower your monthly payments by half of the amount.
With a student loan consolidation you would have only one monthly payment and you would have to pay only one check every month. So if you are paying loans to various lenders you can consider taking a student loan consolidation.
A student loan consolidation has a fixed interest rate and this would mean that you would be paying a fixed amount every month. It is advised that you do some research on the lenders to get the best loan offer and the best rate that you can get. There are various online student loan consolidation calculators available so that you can know how much interest rate you would be paying. You can calculate this by taking the average of all the loans and then rounding it off to 1/8th of the nearest value.
The time period of the student consolidation loan can be extended. If you take a federal student loan consolidation plan then you can have your loan payment period extended to as long as 30 years. But with this option you would have to pay more interest rate throughout your life. However this is a beneficial option when a person is just beginning his/ her career.
When students are still in school and they are eligible for a loan consolidation program then they can block a lower interest rate. In such conditions you would be liable to make payments but since you are still in school you would go in the deferment status. Though you get a lower interest rate but you would be losing six months of the grace period before your repayment time starts.
A student loan comes with a lower interest rate and hence this can save you a lot of money. Lower interest rates would signify a lower and affordable monthly payment.
Lenders for these loans
Some of the lenders that give out student loan consolidation are mentioned below.
Ed fed:
They offer some of the best programs under student loan consolidation. You can get affordable interest rates and get instant approval for your loan. Application process is easy.
Education finance partners:
They offer student loan consolidation at favorable interest rates. The standard repayment term is 30 years. With them you can apply online or even over the phone.
Student loan financial group:
They offer private student loan consolidation. You can get instant approval with their online application.