Learn how to consolidate loans
Student Loan consolidation consists in bundling all your student loans into one single loan with one lender and one repayment plan. For some people it is impossible to attend college without the help of student loans. Private student loans provide low interest rates for students who are unable to afford an education without financial assistance.
However, due to the high cost of education, many students need more than just one loan in order to complete four years of education, resulting in students having three or four loans to repay at the time of graduation.
Fortunately, student loan consolidation provides them the opportunity to easily pay back all their student loans via one convenient monthly payment.
Private student loans provide a solution for those students who are not eligible to receive federal financial aid or whose financial aid package doesn’t cover the full cost of their education. Private student loans can be used towards transportation, books, school supplies and computers apart from the costs of boarding and tuition. In order to receive a private student loan, the applicant must pass a credit check.
Private student loan consolidation presents benefits such as lower monthly payments and reduced interest rates. On the other hand, there are no repayments penalties, which means that all payments in excess of scheduled payments go directly to principal.
Also, repayment terms involved in private student consolidation can vary from a 25 year up to a 30 year repayment term, which offers the lowest possible monthly payment.
Consolidating your loans is not only more convenient but can also save you time and money.Although the interest rates can be higher for private student loan consolidation, the program can reduce monthly payments by as much as 50 percent, which for many students ends up being more convenient than having to pay a higher interest rate.