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Thursday, June 24, 2010

Five Benefits Of Student Loan Consolidation

Are you sick of paying interest on your every month student loans with no finish in sight? Afraid of cash-flow issues that may prevent you from paying your student loans on time? I do know I was seven times and there is a solution to this issue. It is called student loan consolidation.

What is Student Loan Consolidation?

Student loan consolidation basically means consolidating all of your student loans in to a single loan with a every month payment plan. Effectively, all of your earlier student loans are written off and a brand spanking new student loan is created which you need to pay off every month.


Benefits of Student Loan Consolidation


Here are a number of the benefits of student loan consolidation


1. Lower every month payments


By consolidating all of your student loans in to one loan, you only need to pay off one loan every month in lieu of several student loans every month. Thus, your every month payment is lower


2. Pay one loan every month in lieu of several student loans every month


It is a lot simpler in case you need to manage one student loan in lieu of several student loans with different payment deadlines. Also, sometimes with plenty of student loans, you may ended up forgetting to pay one student loan.


3. Low, fixed rate of interest


By consolidating your student loans, it is possible for you to to take advantages of low, fixed rates of interest. Currently, by law, student loan consolidation rates cannot exceed 8.25%. Furthermore, national rates of interest are at a 40-year low therefore this is a nice time to get one.


4. No credit card check or processing fees


No credit card check is necessary in the coursework of the application of a student loan consolidation. The payment designs and terms are usually flexible in that they can personalize it according to your financial standing.


5. Make every month student loan payment electronically


While it is not necessary to make payment electronically, most lenders will knock 0.25% off your student loan rates in case you make payment electronically. Also, using direct debit from your bank account will prevent you from forgetting to make a payment.


Sometimes it can get confusing as to the qualification of applying for a student loan consolidation. The official stand from the government is that students who are still in their grace period or who are still studying in school may qualify for government student loan consolidation


The government student loan consolidation nowadays are competitive compared to private sector, therefore I would recommend going for a government student loan consolidation. With so plenty of benefits of getting a student loan consolidation, it is obvious to economize in the long run is to get one.

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