Friday, February 27, 2009

Why go for Student Loan Consolidation?

Don't you think there's a drastic change in life before and after graduation. At this point of time, somehow, we realize how life can get so expensive. There are so many expenses tied into post graduation life: student loans, housing costs, relocation, car payments and on top of that, if you are extravagant, the list will go on. The solution to this can be Student Loan consolidation.

What is Student loan consolidation?

Student Loan Consolidation is a practical repayment tool that helps you to consolidate all your student loans into a single loan. By this, all your previous outstanding student loans are written off and a new loan will be started. This significantly reduces your monthly payment plan. For example, let's say you have three different government student loans and they come with different interest rates to be paid at different times. By student loan consolidation program, you can consolidating them into one loan and pay monthly, which becomes a lot easier and you don't have to manage multiple loans anymore.

What are the benefits of Student Loan Consolidation?

  • Monthly payments are reduced: Once you have consolidated all your student loans into a single loan, the payment is done only once in a month instead of several monthly payments. This in result reduces your monthly payment, sometimes by as much as 53%.
  • Low interest rates: Using student loan consolidation program, you can negotiate and take advantage of low fixed rate interest for the new loan. Thus help you save some money on interest.
  • No processing fee or credit card check: These loan programs are generally flexible and you can choose any from them according to your financial condition. Moreover there is no credit check needed nor co-signers required here.
  • More convenient: When you have several student loans, you need to pay multiple payments every month. This includes a lot of paper work and you need to remember different due dates for the different loans, which increases the chance of missing out one of them and make late payment. To avoid all these trouble, student loan consolidation is one of the best solutions.
  • Improve credit rating: You can also improve your credit rating with student loan consolidation.

So, a student loan consolidation program should be convenient and easy for you, no matter what your financial situation is. However, before enrolling into any such loan program, clearly understand the details and figure out the most suitable program for you to enjoy the benefits it offers.

1 comment:

  1. “Great post kevin! I think student loan consolidation fails because we revert back to old ways. student consoliadtion loan is a wonderful feeling, but stopping someone from piling it back on is the hard part. Keep up the good work.”