Have you gotten discusted with paying interest on your monthly student loans and imagine that there is no end in sight? Do you have the idea that cash-flow problems may preclude you from paying off your student loans on time? If this is your situation,there is a solution to this problem. The answer is called student loan consolidation.
Student loan consolidation just means combining all your student loans into a single loan with a monthly payment plan. Effectively, all your previous student loans are paid off and a new student loan is created which you have to pay off monthly.
Student Loan Consolidation, The Benefits
As a consequence of combining all your student loans into one loan, you will now have only one loan monthly paymet. This is instead of your current multiple payments. Therefore, your monthly payment is lower
It is a good deal easier to manage only one student loan instead of several student loans with different payment deadlines. Besides, sometimes with a number of student loans, you may wind up forgetting to pay one of your loans.
By consolidating your loans, you can take advantage of lower, fixed interest rates. Presently, by law, student loan consolidation rates cannot go above 8.25%. Furthermore, national interest rates are currently at a 40-year low. So this is a good time to get one.
A credit check is not required during the application of a student loan consolidation. The payment plans and conditions are usually quite flexible in that they can be customized to fit your financial standing.
Altho it is not necessary to send payment electronically, most lenders will knock 0.25% off your loan rates if you send payment electronically. Also, if you use a direct debit from your bank account you can schedule it so that you will not miss making your payments.
Some of the times it can get quite confusing as to what the prerequisites are to qualify for a student loan consolidation. The official stand from the government is that any student that is still within their grace time period or who are still enrolled in school may qualify for government student loan consolidation
The rates for a government student loan consolidation nowadays are quite competitive compared to private sector, consequently I would recommend going for a government student loan consolidation. With so many benefits of getting a student loan consolidation, it is a very obvious way to save money in the long run.