Student Loan Consolidation
What is Loan Consolidation?
Loan consolidation is a procedure by which all of your existing loans are combined into one. The repayment of all of the existing loans is consolidated to one monthly or quarterly repayment. The Annual Percentage Rate (APR) on the interest is also calculated and a single APR is allotted. Keep in mind that the loan consolidation is applicable on both secured and unsecured debts. A majority of people will consolidate unsecured loans more often: such as credit cards, student loans, personal loans, etc.
Why do I need it?
Most of the students and families in the U.S. are facing immense trouble paying off all of their student loans. A large number of students have multiple student loans and remembering each monthly payment due date can be a hassle. Missing the due date may result in a significant increase in the APR along with much more stringent policies. This has caused many students to stress out on how to make these payments and could cause the student to fall into a bad financial situation and hurt their credit score. College Loan Consolidation provides a solution and acts as a lifeline in such troubling situations.
The College Loan Consolidation forms a single new loan and also provides you a lesser APR, so you may repay with ease. Consolidating your loans increases the repayment time allowed, much to the benefit of the student because the monthly payment is lower. All these benefits and much more makes it essential to choose College Loan Consolidation.
How do I apply?
The federal government, as well as private companies, offer debt consolidation programs. You can apply for College Loan Consolidation in person, over the phone, or even online. The online method is the most convenient and preferred one. Please make sure that whichever consolidator you choose is a legitimate company, since there are many non-reputable companies out there. Before deciding on the consolidator to go for, you should do a thorough investigation to prevent any scam. Also make sure what the loan policies are because consolidating your debts may mean you can’t get any further student loans from the existing lender. Once you have investigated and decided to consolidate your student loans, you will find College Loan Consolidation extremely helpful.
Consolidating school loans offers students the opportunity to reduce all of their existing loans of one type (meaning federal or private) into one composite loan. This means you only have to make one monthly payment at one interest rate instead of a number of payments at different dates. Students can also bargain for a lowered interest rate and monthly amount which they can pay off in a longer time span. However, you cannot consolidate federal loans with private loans, or vice versa.
What are some of the disadvantages of college student loan consolidation?
Depending on your lender, it is highly possible that the consolidated student loan rate will be higher than the interest rates on your other loans. Furthermore, If you have already paid off a significant amount of your student loans, consolidation at this point may no longer be worth it.
Types of Student Loan Consolidation
- Consolidating PLUS Loans
- Credit Union
- Direct Loans Consolidation
- Great Lakes
- Low Interest Rate
- Non Profit
- Private Bad Credit
- US Department of Education Consolidation
Frequently Asked Questions
- Can I re-consolidate a federal consolidation loan?
- Can I re-consolidate my current consolidation loans?
- How to Know When to Consolidate
- What Types of Loans Can Be Consolidated?
- When should I consolidate into more than one federal loan?
Other Consolidation Topics
- An Introduction to Consolidation
- Bank Offerings
- Combining Loans and Credit Card Payments
- Compare Rates
- Consolidation and Debt
- Consolidation Calender
- Current Rates
- Debt Consolidation and Loans
- Eligibility Requirements
- Federal Consolidation Update
- Find the Best Rates
- Improving Your Credit Rating
- Private Fixed Rate
- Searching for a Company
- Student Loan Debt Consolidation Companies
- Uncovering Consolidation Scams