Student Loan Consolidation Program - Are The Benefits Worth Your Effort?
Written by: Dean Shainin
There are a lot of benefits one can get when he or she
consolidates his or her student loans. But just as there are
benefits, there are also a little bit of disadvantage when doing
such. It is best therefore for you to read and know all you
could on consolidating your student loans before making that all
important decision and therefore sealing your financial fate.
But loans being as they are - annoying and relevant at the same
time, the kind you cannot live with but at the same time cannot
live without - you just cant help but avoid thinking of them
until that period where you have no choice but to pay up. But do
not fear, the federal government is here - believe it or not -
to help ease your payment of your student loans.
With the help of Congress, all your student loans could now be
combined into one. Not only that, doing so results in
automatically lowering the payment you have to fork up every
month. Plus you are provided with very flexible means of
payment. Not only that, there are also features where you could
- if you wish - extend the period you want to pay your student
loans. Isnt that great?
Still not convinced or are you still confused? Okay, to make it
clear, the following are the benefits one could acquire when he
or she gets to consolidate any or all the student loans he or
she may have.
You get to have the advantage of making payments that are lower
than the ones you regularly pay every month.
Not only will you get to have monthly payments that are lower,
you also will get to pay one and only one loan per month. This
is in lieu of the several loans you may have if you do not
consolidate your loans.
Besides only one payment made each month and a low one at that,
the interest rate attached to the loan is a fixed one! It should
and must not get to be over eight point twenty five percent at
any period during the whole duration of the payment for your
student loan. This is enough to get anyone going especially now
that interest rates available nationally are at their lowest for
And here is the best part, the process one goes through when
applying for a consolidation of student loans is as easy as
could be. Believe it or not, the application does not involve
any forms of credit check. There is also no fee involved for
processing the application for consolidating student loans.
When you consolidate, you could also avail of a plan for payment
that is flexible. This means you will basically be able to
create a plan of repayment that you think suits you the best,
financially of course. This is a great opportunity for you to
assess your current financial needs as well as your financial
needs when the future comes.
Also, if you decide to pay your loan via electronic means, you
will be able to decrease your interest rate by a whooping point
twenty five percent. Doing electronic payment also keeps you
updated in your payments and decreases your chance of ever
forgetting to pay.
Another thing, when you consolidate your student loans, you will
have an option to - if ever you decide - prepay the loan you
have at any given time with no penalty whatsoever.
Aren't these good reasons enough to consolidate.
Okay, to be fair, there are also valid reasons if ever you do
not want to consolidate. These are the following:
If your loans have a combination of high interest and low
interest, it is best if you do your math. If you consolidate
your loans and if averaged, you will get to pay your low
interest loans with rates that are higher, it is probably best
and would work to your advantage if you separately get to pay
your loans that have low interest.
As much as possible, try to be aware of the flexibility always
cited in payment schemes. It might not do you good financially
if you keep paying your loans in a longer period. Try to do your
math again and analyze if doing so would mean that you are
actually paying a higher amount because of the interests that
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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