As a recent graduate, you may find yourself struggling with your educational debt. You envy your friends going out and having fun on the weekends while you are trying to scrape together enough money to make your monthly payments. Will life always be like this? It doesn't have to be. Consolidating your student loans can save you thousands of dollars over the life of your loans. This will free up money for you to use on more important things.
Consolidation combines of all your outstanding student loan debt into one, easy-to-manage loan. This allows you to have just one monthly statement with one, low payment. It works like magic on your finances by minimizing your monthly payments and allowing you the luxury of having more cash in your pocket. Consolidating also means low, fixed interest rates for the life of your loan, allowing you to forget about yearly interest rate adjustments.
With an EdFed consolidation, there are several flexible repayment plans available. EdFed offers several graduated repayment plans that allow you to make interest-only payments for the first few years, and then change to combined principal and interest payments. By selecting one of EdFed's graduated repayment plans and extending your payment term, you could lower your monthly payments by almost 50%. Depending on the total debt, consolidation can extend your repayment term up to 30 years. The longer the term of your loan, the lower the monthly payment will be. However, EdFed does not have any prepayment penalties, which allows you to pay off your federal consolidation loans as early as you like.
Another reason that consolidation is attractive is that with a federal consolidation, the process does not require a credit check, or an income verification. Federal consolidations with EdFed are also completely free! There are no costs or hidden fees involved. EdFed's application process is also quick and simple. Borrowers may complete the application online in just minutes.
Any conditions? Yes. At the time of consolidation, you must not be in default on any of your loans. Borrowers must also have at least $7,500 in federal education debt.
Perhaps you feel that your case is different. It may be that you have landed your dream job and you are making good money. You can make your monthly payments with no problem. Even so, you should still consolidate your student loans to protect your financial future. Consolidation is useful even for those who are not facing a financial crisis at the moment. Lower monthly payments may prove to be beneficial in saving money for the future, and who does would not like to save money?
Another great benefit of federally consolidated loans is that they come guaranteed by the government. There are also deferment and forbearance options available with federal consolidation loans.
A lesser-known advantage of student loan consolidation is the fact that it enhances your credit score. When you consolidate, your multiple loans are paid off and combined into just one consolidation loan. The computers that run the credit checks see that you have paid all your previously open loans in full, and now only have only one open account. You emerge as a responsible borrower, therefore, improving your credit.
Act now, and consolidate your federal student loans with EdFed to avoid paying thousands of unnecessary dollars!
Disclaimer: This article is only for informational purposes and should not be construed or relied upon as legal advice. We do not make any claims, promises, or guarantees about the accuracy, completeness, or adequacy of any of the information provided in this article.
Article Title : Loan Consolidation - Magic for Your Finances
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Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.