College Loan Consolidation Resources

Finance Dept.

From the Finance Research Center

Is having too many payments each month to much to handle and you fall behind? Are you only paying interest on your credit cards? Do you have more than 4 credit cards and owe over $10,000? If you said yes to these questions than you may need a consolidation loan. Too often the word consolidation makes people scared that they are going to ruin their credit and that simply is not the case. What you need is to learn how to consolidate your loans.

College loan consolidation options are available for students who are having trouble paying up the bulk of their debt. The first thing that needs to be done in order to consolidate your loans is find out the interest rate on each debt. The reason you need to know the rate is when you are applying for the consolidation loan you want to make sure you are shaving off a few points of interest. That way the debts will be paid down faster and with a slightly lower payment. That will free up a little spare cash and should reduce some stress.

Next you need to find the payoff amounts on each of the debts that you would like to consolidate. Add these numbers together and then add on an extra $1,000. The reason for the extra is because you never want to get a loan and payoff the other debts only to find the account is now maxed out and you have gone over your credit limit due to finance charges.

Now that you have your figures you need to get a loan. This can be tricky because with college loans, there is a lot of fine print involved with loans. What you should probably due is go speak to your banker. They should be able to provide you with the best options to get your consolidation loan based off of the numbers that you came up with. Before you sign on the dotted line for any loan make sure you can afford the monthly payments.

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