According to recent reports, President Barack Obama implemented some huge changes in the national student loan applications in the latter half of 2011. As records indicate that the current young generation is graduating with more debt than the previous generations, these modifications are introduced into the Federal student loan applications in response to the “We the People” request that caut...
Student loan consolidation can save thousands of dollars sometimes. Finding the perfect lender with the perfect deal is important. There are various student loan consolidation companies that provide various deals on student loans. These consolidation businesses supply the students with a chance to reduce their costs on loans by consolidating several loans into one single loan with one low interest. These companies help students lessen their financial woes.
As there are plenty of fake loan consolidation companies that are there to cheat you, you need to be cautious while signing a deal. You need to check out the background history of the company and check for any complaints in the internet. You have to compare rates from different companies and shop around to get an overview of the market. If you go to the wrong company, consolidating loans can actually increase you expenses sometimes. So, be careful and calculate your profit before you go for a deal with a company.
Three prominent student loan consolidation companies are listed below with additional information.
- Loan Approval Direct: It offers amazingly low interest rates up to 3%, and approves consolidation loan amounts as large as $ 125,000.
- Next Student: It is one of the trusted names in the industry that provides excellent services.
- DebtConsolidation.com: This is an online company that offers loan consolidation at low rates. The online application process is easy and saves time.
Whatever company you choose, be sure that it matches your needs perfectly.
Why Consolidate Student Loans?
There are various advantages of consolidating student loans. The first and foremost is the financial savings. With multiple loans, you have multiple interests, and you end up paying more on interests. After consolidation you will have one single loan with a low interest rate, and you will pay less. In fact, loan consolidations can save you as much as 60%. Consolidating loans also makes your life easier. You don’t have to remember multiple dates for paying monthly installments for different loans.
The circumstances when one took student loans may be different from one’s present situation. Hence, one may not be satisfied with the previous plan, and may want another sort of a loan plan. Loan consolidation gives you a chance to do that. You can get into a completely new plan with different payment terms and conditions after consolidation. One also gets a chance to improve one’s credit score by loan consolidation. But this does not mean that loan consolidations are always beneficial. There are cases when you can be paying more after consolidating. Before applying for consolidation, you have to yourself calculate and evaluate if a certain loan consolidation plan lessens your financial burden or not.
Where to Consolidate Student Loans?
Traditional banks and credit unions also provide student loan consolidation services. However, there are businesses specifically designed for the purpose of student loan consolidation, you are advised to contact them. But it is very important to talk to various companies from order to get the best deal available. Online companies have also come up nowadays, and they offer lower prices as well as easier application processes. You will also like to check them out but the online marketplace is really competitive. Be cautious of the scams prevalent everywhere. They charge you with high processing fees and flee away later on. And make sure the business is offering beneficial plans. Don’t just go through the interest prices, but the other terms and conditions as well.
When to Consolidate Student Loans?
You can start applying for consolidation once you enter the grace period. The eligibility requirement for loan consolidation is that the applicant should have passed out college. One can also apply for loan consolidation after one has started to make monthly loan payments. But the best time to consolidate loans is during the grace period as one will start saving on the monthly payments from the very beginning. Also, you will not make in pressure during the grace period so you could make a fair and calm decision at the fact that moment.