Learn How To Consolidate Your Student Loan
Not all students can afford to pay college fees. They need to borrow from either banks or other lending institutions for their tuition and maintenance fees. If you fall into this category, and you are struggling to service your multiple student loans, you should consolidate student loans you have. You should learn the following quick facts on how to consolidate them into one with single interest rate and monthly installment.
And when they are done with college, it becomes extremely inconvenient to repay these multiple loans. Worse still, some of them end up borrowing from more than one lender.
Get to know the value of your overall debt
There are different types of student loan sponsoring higher education for students such as Stafford and PLUS. Servicing such loans at once may prove a difficult adventure. Therefore, understand your overall debt first and the exact time you are required to service them. Check your records. Ensure that you have a clear list of borrowers and their value. This will give you a clear picture when applying for consolidation.
Assess the current situation
Assess if you qualify for consolidation. You can only qualify for consolidation if you are making your payments on time if your payments are delinquent, and if your federal loans are in default. If you meet all these conditions, then go for consolidation.
Understand the disadvantages of consolidation
Understand that consolidation means you will pay a single and lower monthly installment with a single interest rate. However, you will end up making your payments for more years. In addition, you will end up paying more. So weigh your options wisely and you will not regret your decision.
Make decision on who to contact
Federal loans can only be consolidated with the ministry of education, which offer capped interest rates and you can access programs like deferment, forbearance plus forgives. However, for private loans, you have no option other than to shop around for consolidating firms such as next student, Wells Fargo, and Student Loan Network.
Consolidating your student loan is a very important aspect as far as financial security is concerned for fresh graduates. You need to know the total amount of what you owe your lenders, assess your current situation, know the potential misgivings of consolidation and make a decision on whom to contact for consolidation. Use the above key facts and make a wise decision to consolidate your student loans into one for your better financial stability.