Introduction
A student loan is a great way to finance your college education but this is a loan that needs to be repaid. You might find that you are leaving college with more than one loan, and this may mean that after you have graduated you are finding it tough to handle all these loans. In such a scenario, you might consider consolidating all your student loans and there are many benefits of doing so. Consolidating a student loan is a loan repayment option that is available to students where you can bundle your various loans into a single loan.
What to know
This will mean that you will have a single interest rate to pay for the consolidation loan student as opposed to the numerous ones from the various loans that you have. The options that you will be given for consolidating your student loans will depend on the type of student loans that you have been given. In general, there are two types of student loans that you can be given, and they are either federal or private loans. Federal loans are the ones that are given by the United States Department of Education while private loans are financed by private lenders.
Private and federal loans cannot be consolidated into a single loan, and in fact the US Department of Education will not allow the two to be consolidated. However, a private lender can allow consolidation loan student the two loans to be consolidated into a single loan. However, you are more likely to receive a higher rate of interest from the private lender. This means that at the very worst, you should have only two loan repayments after you have finished college.
You can lower your loan repayments significantly by consolidating them, and the repayments can be reduced by as much as 60% of the consolidation loan student.. Unfortunately, one might end up with an increased amount that you will have to pay in total. This is the reason why you have to evaluate carefully the interest rates and the terms of the loan before you decide to consolidate. Many of the student loans given by the Federal Government have low interest rates, but it is still possible for you to bring down the repayment rates by consolidating the loans. There are a number of loans that are eligible for consolidation and you can find out about such loans by doing some research.
One can be able to consolidate his or her student loans at any time after you have graduated or if you have left school. It is also possible to consolidate your student loans if you are remaining with less than half the total time of your studies, or if the loans have been under previous repayments. The people who are eligible for consolidation loan student are parents and students who have federal loans or who have high monthly payments. If you have several different loans from different lenders, you can consolidate these loans. In addition, if you have loans that have different due dates, consolidating these loans is an option that is attractive.
