Student Loan | When Considering Student Loan Consolidation Rates!

January 17, 2012 – 12:49 am

Well, why should you consolidate your loans in the first place? Hold on to your seat and follow me as I walk you through the most important reason of all.

Having too many loans and multiple interest rates. Yup, that’s right. During your academic endeavors you have undoubtedly taken on a few loans. You know, that summer when you couldn’t find a part-time job to pay the rent for your studio outside campus? Or back when you wanted to tour Europe during Spring Break?

No matter why you took those loans, the reality is that you are paying multiple monthly payments which will cause all kinds of stress and distract you from your job hunt now that you are no longer a student. Loan consolidation rates are often much gentler on the bank account than all those combined loans that you have. You see, when you consolidate your loans, the lender will take an average rate of all the loans that you are planning to consolidate and offer you a combined lower monthly payment.

When you get to the stage where you want to know more about the available student loan consolidation rates, you will need to ask for quotes from a few different lenders.

A good way to go about this is to create a spread sheet with all the different lenders that you are considering. Note down things like interest rates, whether they are federal or private, if the interest rate is fixed or variable and if they offer incentives for multiple on-time payments or when you have a good credit score.

Now it is time to evaluate the offers with the help of your spread sheet, and make sure that you get the best offers in writing from the lenders. What they tell you in a quote or over the phone, can vary greatly from the actual agreement when it’s time to sign something.

The main benefits from consolidating your loans are among others:

The convenience of having one loan with a single monthly payment.
Getting a lower combined interest rate
And last but not least, the immense peace of mind when planning your budget and organizing your monthly expenditures.


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