Student Consolidation Loans

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Author:
Ricky Lim

Are you sick of paying interest on your monthly student loans with no end in sight? Afraid of cash-flow problems that may prevent you from paying your student loans on time? I know I was and there is a solution to this problem. It is called student loan consolidation.

What is Student Loan Consolidation?

Student loan consolidation simply means consolidating all your student loans into a single loan with a monthly payment plan. Effectively, all your previous student loans are written off and a new student loan is created which you have to pay off monthly.

Benefits of Student Loan Consolidation

Here are some of the benefits of student loan consolidation

1. Lower monthly payments

By consolidating all your student loans into one loan, you only need to pay off one loan monthly instead of several student loans monthly. Thus, your monthly payment is lower

2. Pay only one loan monthly instead of several student loans monthly

It is a lot easier if you have to manage only one student loan instead of several student loans with different payment deadlines. Also, sometimes with many student loans, you may ended up forgetting to pay one student loan.

3. Low, fixed interest rate

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

4. No credit card check or processing fees

No credit card check is required during the application of a student loan consolidation. The payment plans and terms are usually quite flexible in that they can customize it according to your financial standing.

5. Make monthly student loan payment electronically

While it is not necessary to make payment electronically, most lenders will knock 0.25% off your student loan rates if 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 quite 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 quite competitive compared to private sector, therefore I would recommend going for a government student loan consolidation. With so many benefits of getting a student loan consolidation, it is quite obvious to save money in the long run is to get one.

Ricky Lim works in a finance company specialising in student loan consolidation. Get more information, tools and resources on student loan consolidation, visit this site: http://about-studentloan.com

He also operates a home loan information site

A Quick Note From The Publisher... If you like the article above, you may be interested in the following article which is also related to Student Loans... Should You Consolidate Student Loans? Students can consolidate student loans to relieve the pressure of having multiple loans, large monthly payments and higher interest rates. Are you struggling to repay your student loans? Well, you are not alone. Many students and graduates that have student loans look to consolidation in order to make them more manageable. Consolidating your student loans can be a good idea under certain circumstances. Currently, interest rates have been low but they are in fact rising. And economists tend to agree that they will continue to rise. Most student loans are based on a variable interest rate and will not be locked-in until you refinance or get a loan consolidation. The option to consolidate student loans is available to those individuals who have established good credit by paying their loans back on time. If you have missed payments or have been late then you will probably not receive the lowest interest rate but it may still make financial sense to consolidate. As a rule, loan consolidation rates are usually offered at 1 or 2 points below what your current rate is. This makes the loan more attractive and is an incentive by the lender to draw in your business. You will save each month because of the lower interest rates but it is also tempting to reduce your monthly payments and extend the life of the loan. But that can have consequences. What was a 5 year loan can turn into a 10 year loan. You can avoid this by paying off as much of the principal as possible. This will shorten the life of the loan and the amount of interest that you pay. This is ideal in the best of circumstances but for those times when money is tight you can arrange with the lender to reduce your monthly payments, even to the minimum. Student loans are like every other type of bank loan. You...