Students who are facing a challenge to pay for their education to find a good financial aid in the form of student loans. The majority of students have to leave their college with a huge debt burden enough unfortunately. Besides that, most of these students have to write multiple checks for reimbursement of the loan each month, as they are often obtained through various lenders. Consolidation is certainly a good solution to their problem.
Loan Consolidation - What is it really?
Loan consolidation is about the addition of all student loans in order to have a single repayment plan and an exclusive supplier. Refinancing of home loans and student loan consolidation are very similar to each other. On consolidation, the current account balances are satisfied, while the total balance rolls over to the consolidated loan. So, all you need to do now is just a single student loan. In addition to students and their parents can also get the loans consolidated.
Can I consolidate my loans?
You must meet the following criteria:
It must fall within the period of 6 months grace period after graduation, or you need to have started with the loan repayment.
The total balance of loans that meet the criteria should be more than $ 7,500.
You should have 2 or more lenders.
Your student loans have not yet been consolidated, or when they returned to school and acquired new loans as consolidation.
The following types of loans can be consolidated:
Federal Perkins
National Direct Student
Direct subsidized and subsidized
Federal subsidized and subsidized Federal Stafford
Plus Direct and Federal PLUS
Consolidation and Federal Direct Consolidation
And many others.
Where can I get a consolidation loan?
You can get the loans consolidated through the U.S. Department of Education or a credit union participating in the Federal Family Education Loan program or through a bank. No matter where you get your consolidated loan, the terms and conditions usually remains the same. Be sure to get in touch with lending institutions that currently hold your loan for this.
If you have all the loans through a single lender, you should get them settled with him.
While deciding on the consolidation, make sure that you choose to do so only when you have no intention of returning to school and apply for new loans. In this way we could try to make sure you get the best deal of consolidation. The interest rate usually does not vary among creditors, but you could get discounted rates through some of them for quick refunds. Some of them even offer discounts to get the right to debit your account for monthly payments.
Your student loans can be consolidated at any time during the trial period of 6 months or once you start with the repayment of the loan. You can get a lower interest rate if the loans are consolidated within the grace period. However, it is a better idea to wait until you reach the fifth month of the grace period and then consolidate your loans. In this way, you will not lose the remaining grace period. It takes about 30-45 days for the entire consolidation process is completed.
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