Benefits of Student Loan Consolidation
Here are some of the benefits of student loan consolidation
1. Lower monthly payments
By consolidating all your student loans into one
loan, you only need to pay off one loan monthly instead
of several student loans monthly. Thus, your monthly
payment is lower
2. Pay only one loan monthly instead of several student
loans monthly
It is a lot easier if you have to manage only one
student loan instead of several student loans with
different payment deadlines. Also, sometimes with
many student loans, you may ended up forgetting to
pay one student loan.
3. Low, fixed interest rate
By consolidating your student loans, you will be
able to take advantages of low, fixed interest rates.
Currently, by law, student loan consolidation rates
cannot exceed 8.25%. Furthermore, national interest
rates are at a 40-year low therefore this is a good
time to get one.
4. No credit card check or processing fees
No credit card check is required during the application
of a student loan consolidation. The payment plans
and terms are usually quite flexible in that they
can customize it according to your financial standing.
5. Make monthly student loan payment electronically
While it is not necessary to make payment electronically,
most lenders will knock 0.25% off your student loan
rates if you make payment electronically. Also, using
direct debit from your bank account will prevent you
from forgetting to make a payment.
Sometimes it can get quite confusing as to the qualification
of applying for a student loan consolidation. The
official stand from the government is that students
who are still in their grace period or who are still
studying in school may qualify for government student
loan consolidation
The government student loan consolidation nowadays
are quite competitive compared to private sector,
therefore I would recommend going for a government
student loan consolidation. With so many benefits
of getting a student loan consolidation, it is quite
obvious to save money in the long run is to get one.
Ricky Lim works in a finance
company specialising in student loan consolidation.
Get more information, tools and resources on student
loan consolidation, visit this site: http://about-studentloan.com
He also operates a home loan
information site
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