Are you sick of forking over interest on your monthly student loans with no end in view? Frightened of cash-flow difficulties that might prevent you from paying your student loans on time? I understand I was and there can be a remedy to this problem. It is known as student loan consolidation.
Exactly what is Student Loan Consolidation?
Student loan consolidation just means consolidating all your student loans into a single loan with a monthly payment plan. In effect, all of ones previous student loans are written off and your new student loan will be crafted which you have to pay off once a month.
Rewards of Student Loan Consolidation
The following are many of the rewards of student loan consolidation
1. Smaller monthly payments
Through consolidating all ones student loans into a single loan, one just have to pay off a single loan monthly rather of many student loans monthly. Consequently, ones monthly payment will be reduced
2. Pay only one loan per month instead of numerous student loans per month
It is a great deal easier if you have to manage simply one student loan instead of a number of student loans having different payment deadlines. Additionally, sometimes with several student loans, one might end up forgetting to pay one student loan.
3. Decreased, fixed interest rate
Simply by consolidating your student loans, you may be capable to take advantages associated with reduced, fixed interest premiums. Currently, by law, student loan consolidation interest rates are unable to exceed 8.25%. Moreover, national interest interest rates are at a 40-year low therefore this may be a great point in time to obtain one.
4. No credit card check or processing fees
No credit card check will be necessary through the application of a student loan consolidation. The payment plans and terms can be normally very flexible in that they can personalize it relating to your financial position.
5. Make once a month student loan payment electronically
While it may be not required to make payment electronically, most lenders would knock 0.25% off ones student loan premiums if you make payment electronically. Additionally, utilizing direct debit from ones payment account will prevent one from forgetting to make your payment.
Sometimes it may get quite confusing as to the qualification of applying for any student loan consolidation. The official stand from the government is that students which are now in his or her grace time period or who happen to be still studying in college might qualify to get government student loan consolidation
The government student loan consolidation nowadays may be fairly competitive compared to private sector, therefore I would certainly recommend going for a government student loan consolidation. With so many advantages of obtaining a student loan consolidation, it is pretty clear to conserve money in the long run is to acquire one.
We have to admit that many students out there never have the opportunity to study in college. They need to understand where exactly they are going to get their expenditures for college like their tuition fees, materials and boarding expenses for their schooling alone. Some students worked as working students during high school and made them save some cash. Most parents are providing their children crucial funds as a preparation for their college education. However, oftentimes the issue is about the confusion between the student available fund of the student on what school he or she will be enrolling and what particular course he or she will take.
Today, you can discover two different sources for financial assistance for education. One source is the federal aid that provides the students whose households are not capable of paying the educational expenses for collage. This type of financial assistance should be paid back, yet this type of student loan does not require interest not unless the student did not repay the loan after the expiration of the grace period.
One other loan resource is the federal student loan option. This is offered for those students whose households can reasonably shoulder the college expenses. The kind of student loan incorporates affordable interest rate and often lower compared to private loans. You can also apply for a private loan in some financial institutions or banks, yet the interest is higher than the federal student loan.
Unfortunately, there are students who often discover that their initial student loan did not comply with the agreement, as it never pays their needs at that time and the whole year of schooling. These students are forced to apply for new loans later on. The result is that they are managing several loans to compensate after completing college, which is often overwhelming. After they graduated and they need to start paying the loans, the government will offer them to apply for student loan consolidation. The good thing is this type of loan has lower interest compared to usual loans.
Find more information regarding student loans and pell grant at studentelligence.com
It is a well known fact that education is the most important thing for the people because they can obtain a great career and thereby earn happiness and prosperity only with the help of education. But education is becoming costlier day by day. Increase in the cost of education is making it unaffordable for maximum number of students.
In such situations to continue their educations students have to take help of private student loans. In fact there are situations where the students have many taken loans one over the other and then find it difficult to keep papers of all the loans properly and make repayment of different loans on different dates individually. Therefore the only solution to this problem is private student loan consolidation.
Private student loan consolidation combines all the loans into a single loan so that students have to make repayment only once on a particular date; there is no need to pay the separately. It is to be noted that private student loan consolidation has gained immense popularity in the recent past and has helped many students who have financial problems because it allows the students to reduce their monthly payments to some extent. Further, it makes the financial life of the students simple and easy. So if you are intelligent enough you will definitely opt for private student loan consolidation.
Private student loans are loans that have been taken from private lenders such as banks and other financial institutions. They are very helpful for the students in gaining their education and make their dreams come true. However, there are certain misconceptions about these loans which need to be clarified before you take up private student loans.
Subsidized or Unsubsidized- The first misconception about Private Student Loans is that federal as well as private student loans are subsidized. Actually the fact is, Federal student loans offer subsidized interest rates but private loans do not offer any subsidized interest rates. In case private loans are offered at subsidized interest rates; it is due to the requirements or merit of the student applying for the loan.
Student Loans Are Paid After Graduation Or Not- The second misconception about private student loans is that student loans are paid after graduation. It should be remembered that all student loans are not paid after graduation and if you want to take loans where you can repay your loan after graduation then you must mention it clearly when requesting for loans.