Benefits of Student loan consolidation

Have you become discusted with paying interest on your monthly student loans and imagine that there is no conclusion in sight? Do you have the idea that cash-flow problems may keep you from paying off your student loans on time? If this is your situation,there is a resolution to this problem. The solution is called student loan consolidation.

Student Loan Consolidation, What Is This?

Student loan consolidation just means consolidating all your student loans into an individual loan with a monthly payment plan. In effect, all your previous student loans are written off and a new student loan is created which you have to pay off monthly.

Student Loan Consolidation, The Benefits

Here are some of the benefits of student loan consolidation

1. Lower monthly payments

As a result of placing all your student loans into one loan, you will now have only one loan monthly paymet. This is instead of your current multiple payments. Therefore, your monthly payment is lower

2. Make payments on only one loan monthly rather than several student loans each month

It is a good deal easier to manage only one student loan rather than several student loans with different payment deadlines. As well, some of the times with a number of student loans, you may end up forgetting to pay one of your loans.

3. Lower, fixed rate of interest

By combining your loans, you will be able to take advantage of lower, fixed interest rates. Currently, by law, student loan consolidation rates cannot go above 8.25%. Moreover, national interest rates are currently at a 40-year low. And therefore this is a good time to get one.

4. No credit check or processing fees

A credit check is not required with the application of a student loan consolidation. The payment programs and conditions are usually quite negotiable in that they can be customized to fit your financial situation.

5. Payments can be mad monthly electronically

Altho it is not essential to make payment electronically, most lenders will knock 0.25% off your loan rates if you send payment electronically. Besides, if you use a direct debit from your bank account you can schedule it so that you will not miss making your payments.

Sometimes it can get quite confusing as to what the requirements are to qualify for a student loan consolidation. The official stand from the government is that any student that is still within their grace time period or who are still studying in school may qualify for government student loan consolidation

The rates for a government student loan consolidation nowadays are quite competitive compared to private sector, consequently I would recommend going for a government student loan consolidation. With so many benefits of getting a student loan consolidation, it is a quite obvious way to save money in the long run.