Student loan consolidation

In the latest years, more and more people dream of a higher education. In most cases they are young and do not have put aside money to pay for school. This is where a student loan comes handy. A student loan might a be a helpful financial aid, but it must be repaid and, in most cases, student mismanage their finances. To maintain a certain lifestyle and to cover their previous mistakes, students often get more loans or charge on their student credit cards. That is why a lot of people who graduate have more than one loan to repay.

What does student loan consolidation mean

Getting higher education is one step towards your life’s dreams. But what is there to be done when you graduate, and instead of a new beginning ,you see your student loans closing in on you?
Student loan consolidation means gathering all your existing student loans into one, that will ease your financial struggle.

Why choose student loan consolidation

The first and most obvious advantage it brings is the commodity to pay in one bill all your loans. But there are other and more important advantages:

  • consolidation brings a fixed interest rate; further more, this cannot exceed 8.25% for the life of the loan
  • best repayment plan is offered to those who choose to consolidate;
  • monthly repayment can be reducer through an extension of the loan
  • credit score would improve; you get a new loan and your previous ones are cleared ;this makes it easier to get future financial assistance, if needed;

Who qualifies for it

To get a consolidation, you must present the following conditions:

  • You have not consolidate your loans yet
  • You are coming towards the end of the six months grace period for paying your student loans
  • You have a student loan ranging up to $7500

Where to look consolidation loan

Student loan consolidation can be made through banks and credit unions that are members of FFELP ( Federal Family Education Loan Program) or from the U.S. Department of Education.

Student loan consolidation can be a useful help in times of financial burden .Finding a way to consolidate your loans should not be a problem, since there are many establishments willing to get your business. Do not forget to do your research before deciding your business partner and start living a responsible financial life.

More student loan resources:

  • www.loanconsolidation.ed.gov
  • www.aesucces.org

[ratings]

Still haven't find what you are looking for? Search our site:

Comments are closed.