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If you are like many recent graduates, you are probably trying to figure out how you will pay back your student loans. If you have multiple student loans, one option you have is consolidating student loans. Doing so can actually lower your interest rates and lower your monthly payments. This can be helpful as you are trying to get started living on your own for the first time. There are some tips that can help you figure out if consolidating student loans is right for you.
Know Your DebtThe first step you need to take is to identify how many student loans you have, how much you owe on each loan, and who the lender is for each loan. Once you do this, you can check your current interest rates to see how much interest you are paying on each loan, and how much you are spending each month on your student loan payments. If these loan payments are too high or your interest rate is too high, you should consider consolidating student loans.
Deciding to ConsolidateIf you decide to consolidate, call your lenders first. One of your lenders may be able to help you consolidate at a great interest rate. If that is not the case, you can contact a private company that specializes in consolidating student loans. No matter which way you choose to go, you must compare interest rates. You want to choose a company that offers the lowest possible interest rate to keep your monthly payment low. Just be careful that you read the loan terms carefully to make sure you understand the fine print. Do Your ResearchOne last tip is to do your research before you sign a loan agreement. Make sure that you are not eligible to have your student loans forgiven. If you meet your lender's requirements to have your loans forgiven, you should not consolidate. You will give up your right to have your loans forgiven if you consolidate student loans.
Student loan consolidation can be the right choice if you need to lower your monthly payments.
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How do I go about consolidating student loans?
You can consolidate your student loans by consulting a financial planner or consultant. You can check out these tips for more information: http://www.forbes.com/2009/04/15/student-loans-moneybuilder-personal-finance-consolidate.html
What would be the benefit of consolidating your private and federal student loans?
One benefit of consolidating your private and federal student loans is that it would lower your monthly payments. Another benefit of consolidating student loans is that the variable interest rate on the loan can be switched to a fixed interest rate.
Where do I find out about consolidating student loans?
Talk with whoever you got your student loans through. They will be able to tell you if you can consolidate your loans or not.
How can I go about consolidating my school loans?
The Department of Education has a whole site dedicated to consolidating student loans. Here it is: http://www.loanconsolidation.ed.gov/
Where can I consolidate school loans?
Consolidating student loans can save borrowers up to 50% on monthly loan payments. At StudentLoanConsolidator.com, you can learn how the consolidation process works, view interest rates, and get started consolidating both federal and private student loans.
What is the maximum interest rate for a student loan consolidation loan?
The maximum interest rate for consolidating FEDERAL student loans is 8.25%. If your student loans are not federal loans, though, there is no maximum interest rate.
When should you consider consolidating student loans?
Yes, you should consider consolidating your student loans. The reason for this is that you can negotiate a lower rate of interest with the bank than your current loan with the government. Also, since your future ability to pay off the loans is unclear, you should have alternatives and be flexible in your financial situation.
How can you consolidate your student loans when your lender refuses?
When you have asked your lender to consolidate your student loans and they refuse, you can look for a company that will work as a liasion between you and a prospective new lender. Due to investors not investing in student loans the majority of lenders have stopped consolidating federal loans. Student Loan Gal at www.defaultms.com
What is the process to consolidate your student loans?
Consolidating student loans involves dealing with the company or source that provided the loan in the first place. All of the loans will be gathered up and configured into a consolidated loan, which a person then must accept or decline.
What are some tips and ideas to get out of debt?
Some tips and ideas to get out of debt include consolidating one's loans and debts, considering filing bankruptcy, and cutting down on extraneous expenses.
What are some tips on consolidating student loans?
If you have any federal loans they can be consolidated easily through the Federal Direct Consolidation Loan Program. For private loans a lot of banks will not consolidate, however if possible you can take a personal loan for most of the amount to pay some of them off, leaving less outward payments and numbers that are easier to manage.
How can I find out about consolidating private loans?
There are numerous websites that offer some suggestions about consolidating private loans. The best resource to get information on consolidating private loans is the financial institution or banks that offer financial advisor services.
