School Loans Consolidation: Why You Need it
You’ve heard of the term school loans consolidation. But, do you know what it means? If you have been worrying about how to be able to pay your student loans with the high interest rate and a short time to pay, then you should consider consolidating your school loans.
If you’re interested, then read on. This article will give you some information about school loans consolidation, what it can do for you, and where and how you can apply for one.
Student Loan Consolidation
What can it do for you?
Here are some advantages of loans consolidation. After graduation, consolidation loans can really help ease the burden of repayment. It does this by bundling all your student loans into one, single loan with one lender and with one repayment plan. Both the students and parents are eligible to apply for student loans consolidation.
That’s not all. With student loan consolidation, you could cut your student loan payments in as much as 50%. That means saving thousands of dollars on the life of your loan. You can lock in a low monthly payment with a fixed interest rate for the life of your loan, and you would never have to worry about application fees, origination fees, credit checks, income verifications, or prepayment penalties. This will really help reduce your monthly payments.
Another great thing about it is that when you consolidate your loans, you not only get a lower interest rate, you can also extend the time to repay for up to 20 more years. This is to help you be able to settle all your accounts easily. Just think: lower interest rates and a longer time to repay.
Federal Student Loan Holders
When you have a federal loan like PLUS and Stafford you are qualified to avail of Federal Consolidation Loan program so that you will still be able to lower your monthly payments for as much as 60%.
Private Consolidation Loan
Private loans is another thing. If you have already consolidated your federal loans, or you have private student loans to repay, don’t worry. You can still refinance all your student loans, including private loans, at low rates that can save you money. This is through the Private Consolidation Loan.
Where and How You Can Apply for One
Applying for student loans consolidation couldn’t get any simpler. Now, you can go online and complete the whole application process in just a matter of minutes. All you have to do is fill up some forms. Make sure that when asked for a contact number, you give one that is working and where you can easily be reached. This is because in some companies, customer service representatives will contact you within 15 minutes of submitting the application forms. Just check with the company you choose regarding the requirements. There are some that will require you to have a co-signer, and there are some who don’t. Those who do will give you an incentive, like getting even lower interest rates if you have a co-signer with good credit background. Also, you can terminate your co-signer after making on-time payments for a specified time. It really depends on the company you choose, so put some thought into this and choose wisely.
More and more students are taking to school loans consolidation as the solution to paying off their debts. This is really a good way to aide you in repayment of your school loans.
Watch the video related to refinance school loan
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Help answer the question about refinance school loan
Is there a way to make a deal and cut down my refine loan. I took it for paying a school loan?I have a balance of $90000.00 on it along with my home mortgage of a balance of 160000.00. I need to be able to lower my monthly payments. $1500.00 for house mortgage and $550.00 interest only for my refinance loan. Help
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Discover where to apply for school loans consolidation. Compare student loan consolidation rates from several sites online.
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- Types of Loans That Can be Part of Student Loan Consolidation Plans
- Direct Student Loan Consolidation Could be the Best of the Lot
June 17th, 2009 at 1:44 pm
There are lots of places to consolidate your student loans. The general guidelines are:
No longer enrolled more than half time in school.
In repayment or in a loan grace period. (normally 6 months after leaving school)
Have not previously consolidated your loans.
There are differences in the program benefits so be sure to ask about any special offers that may be available.
For example:
Is there a discount for auto-debit of your payment?
Are there any on-time payment discounts?
The two I general recommend both have online applications and can get you approved pretty quickly. Chase Bank, student loan consolidation program can be reached through http://www.usadegrees.com/consolidate/ Student Loan Advisors can be found at http://www.StudentLoanAdvisors.com
By law there are no application fees, so you can try as many as you'd like and determine who has the best offer for you.
June 17th, 2009 at 2:12 pm
Yes, it is likely to affect your credit rating if you are to consolidate your loans. It sounds like this is unfortunate for you as you really want to do the correct thing. I would ensure first that a consolidation loan really is the way to go as student loans are generally cheaper.
June 17th, 2009 at 1:25 pm
Noice
June 18th, 2009 at 1:04 am
There are many student loan consolidation but all are not good. Always go to them who are legitimate and are BBB online registered. They can reduce the rates by 2% and also lowers the payment by 50%.
To know more you can visit
http://www.easystudentloanconsolidation.blogspot.com
June 18th, 2009 at 3:35 am
Go back to the lenders of the student loans. Most of them wil do consolidation for you.
Be very careful when choosing a consolidation lender and stay away from the likes of CitiBank, Bank of American, etc. They will "reduce" your payments by extending the loan term (to as long as 30 years) so that you end up paying $100,000 in interest on perhaps $15,000 student loan debt.
Great Lakes High Education is a good group to deal with. SLMA is good, too.
Check out this info:
http://www.loanconsolidation.ed.gov
June 18th, 2009 at 6:39 am
It is usually a few days to about a few week process, depending on if everything was done online or if you had to mail some paperwork. I would be concerned.
Is there a reason you chose to consolidate with a lender instead of Direct Loans? If you have already signed for the paperwork with the lender, then you will need to consistanly call and keep on top of them until the process is complete.
I would also check out how reputable the lender is. It seems that everyone is in the student loan consolidation business these days. Lenders like Sallie Mae, Chase, PNC, CitiBank, Teri Loans, Wachovia, SunTrust these are are all reputable lenders.
Good luck!
June 18th, 2009 at 6:13 pm
Sallie Mae is a leader in student loans and student loan consolidation.They meet all your above criteria……except maybe the interest rate.
By law, lenders are required to use the same interest rate formula for consolidation loans. However, many lenders offer interest-rate reductions for paying on time or via direct debit. It is important to read the fine print and understand how you become qualified for or disqualified for a lender’s borrower benefits programs. Beyond savings, borrowers should consider customer service, flexible repayment options, online account access and applications, reputation and industry experience when selecting a lender.
They have a lot of info on their website about consolidation, including a calculator that will let you plug in your loan amounts and see what your payments would be, based on which repayment option you choose.
http://www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/student_loan_consolidation.htm
June 19th, 2009 at 5:32 pm
Definitely Wachovia Education Finance 800.504.4990 No credit check,No fee to consolidate your payment will be approximately as low as $241.89 and as high as $312.99 on a 60,000 dollar Loan takes 30 days to be consolidated.Take Care.
June 20th, 2009 at 9:09 am
No, the single holder rule was lifted in June. As a result, lots of shady companies have been aggressively trying to to lure college students to consolidate with them.
Don't be fooled by promises of lower interest rates. Rates are set by the government and are the same no matter whom you consolidate with. The only difference is what they call "borrower benefits" – such as a reduction of interest rate after you pay on time for a certain number of months.
Sallie Mae is the biggest and most experienced consolidator of student loans. You can take advantage of their calculators, concierge service (where they fill out the paperwork for you) and other information and tools at http://www.salliemae.com/consolidation.