Student Loan Consolidation - How To Get The Best Rates And Plans?
Written by: Dean Shainin
Copyright 2005 Dean Shainin
Student loan consolidation can have many benefits for the career
minded student. With the prices of things going through the
roof, going to college can be very costly. Many students don't
have thousands of dollars to pay their way through college.
This is why many college students use student loans to get
themselves through college. When it comes time to pay back their
student loans, it can be a real burden and a distraction from
Before you sign up on the dotted line, you should know how to
get the best student loan consolidation rate and plan for your
financial needs. If you are tired of too many bills and monthly
due dates, it just might be time to find the best student loan
consolidation rate and plan that you can qualify for.
What Is The Idea Behind Student Loan Consolidation?
When a student first applied for several student loans from
several different agencies and student loan providers, they each
gave a different interest rate and term for paying back the
loans. The idea of student loan consolidation, is to take all
the different student loans and put them into one easy
convenient loan. You then only have to make one monthly loan
payment every month, instead of several loan payments every
month over time. This saves the student both time and money.
Having a lower interest rate and less checks to write every
month are a couple of advantages of doing a student loan
Credit Check Before You Get Student Loan Consolidation Rates And
The most obvious way to get the best student loan consolidation
rates and payments, is by having great credit. It's easy to get
great student loan consolidation plans with a credit score, also
known as FICO, over 660. But, there are several ways to get the
best student loan consolidation rates and payment plans.
You can do a simple online search on FICO and credit scores to
find the information you need to check out your credit score.
Knowing your credit information should be your first step to
getting the best student loan consolidation rates. With
knowledge, you will get the best student loan consolidation
rates for your financial and credit situation.
Student loan consolidation rates and plans can vary from person
to person. The loan rates offered will be based on your
financial situation and credit. With a FICO credit score under
600, it can be a challenge to get a good student loan
consolidation rate and plan in most cases.
7 Aspects To Consider With Student Loan Consolidation Plans
1. Lower Monthly Payments. Depending on your student loan
situation and the type of lender you choose, you may be able to
lower your monthly payments by up to 50%
2. Having Simple Loan Payments. By consolidating your student
loans, you only have one loan payment per month and one check to
write. This is very beneficial if you are writing several checks
every month to multiple lenders.
3. Having Fixed Interest Rates. With some federal consolidation
loans you can have a fixed rate for the life of your student
loan. It's best to do research to see what the best interest
rates and term you are eligible for. You can check online to
calculate the interest rate on a new student consolidation loan
based on the rates of your current student loans. You can then
round up to the nearest 1/8th of a percent of the weighted
average of the interest rates on your eligible student loans.
4. Extending Your Payment Period. You may have a lot of student
loan debt. With federal consolidation loans you may be able to
extend the payment term up to 30 years. It's a good idea to
realize you will end up paying more interest over the life of
your student loan consolidation. The idea is to get some
leverage until your career takes off. You can focus on making
money instead of several monthly loan payments.
5. In School Consolidation Programs. While still in school,
eligible students can lock in a low rate. This would put you
into repayment status, but since you are still in school, you
are automatically put into deferment. The drawback of
consolidating your loans while in school, is that you lose your
6 month grace period. The solution to this would be to request
forbearance for up to 1 year on your student loan consolidation.
Here again you can do some research and get more information
6. Lower Interest Rate. Student loan consolidation can save you
thousands of dollars. You may be using credit cards with 10% to
28% interest trying to keep up with your bills. This can cost
you thousands of dollars when you pay the minimum monthly
payments on high interest credit card debt. Having a student
loan consolidation may be your best option if you can get lower
interest rates when consolidating your student loans.
7. New Interest Rates. With a new student loan consolidation,
you may be able to get a much better interest rate. Interest
rates are now at an all time low. You may have been paying on
debt you built up from several years ago, at high interest
rates. Things change over time in the financial industry.
Resources Online For Student Loan Consolidation Rates And
With today's Internet resources, you have an advantage when
looking for the best student loan consolidation rates and plans
online. If you take some time to do research on the process of
getting the best student loan consolidation rates and plans, you
may be able to save yourself the high costs on student loan
Online website services can make it easy to see if you qualify.
There are many tools and ideas online to help you get the best
rates and plans available for your student loan consolidation
About the author:
Dean Shainin is a consultant specializing in student loan
consolidation. Get valuable resources, tools, information and
more articles on student loan consolidation, visit this site: Student Loan Consolidation
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