One of the most important things to manage after graduation is the debt you owe. The reality is that life after college can get very expensive. With all the living expenses tied into post grad life, including housing costs, car payments, and relocation, why worry about a huge school loan payment? Student loan consolidation can reduce your monthly payment, and help you manage your budget for years to come.
The benefits of loan consolidation:
Allows you to reduce your monthly payment by as much as 53%
No penalties for early repayment
Improve your credit score
Simplify your monthly bill-paying paperwork with one payment a month
No credit check, no co-signers needed, and no fees
Consolidation loan interest is also deductible from Federal Income Tax
Choosing a bank to consolidate with:
So, who should you use to consolidate your student loan? There are many providers, including the Federal government who will help you consolidate your student loan. No matter who you choose, find a company that offers one-on-one personalized customer service. Loan counselors can educate you on the benefits of student loan consolidation and help you determine if consolidation is the right choice for you.
Make sure that the bank you use takes time to explain the loan consolidation process, the different repayment options that are available to you, and of course all of the federal benefits that are tied into consolidating your school loans. Most importantly, financial counselors should be at your disposal throughout the entire process.
Be sure to call at least 3 loan consolidation providers. When you call, pay particular attention to how long it takes them to answer the phone, the types of questions they ask about your status, and how they explain the loan consolidation process.
By making a number of calls, you can compare counselor knowledge, costs, and timing. Look for a company that spends time training their representatives, offers competitive rates, and is willing to work within your time frame.
By finding the right financial institution, you can reduce the headaches associated with banks the buy and sell consolidations. Ask whether or not each institution will hold your consolidated loans or if they will resell them to another institution. Your best bet is to find a bank that will be with you throughout the entire repayment process. This is helpful if you ever get into repayment trouble and need flexibility.
Once you begin to repay your loans, make sure to place all of your payments on time. Most repayment options include some type of benefit for making on-time payments. This can reduce the total amount you need to pay back or even shorten the time period in which you make payments. Banks are very interested in having you pay off your loan. However, make sure that there are no penalties for early repayment. Some banks try to penalize you simply because they won't receive the benefit of all the interest you might pay over the full repayment period.
Consolidating your student loans is a great way to simplify the repayment process, lower your monthly payments and reduce your debt burden. The key however is finding the best institution to consolidate your loans with. Make multiple calls, ask a lot of questions, and search for competitive rates. Doing so saves you money and makes you comfortable with the repayment process.
Article Title : Student Loan Consolidation Made Easy
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How EdFed Helped others!
Consolidating my loans with EdFed was the best thing I did this year. Even though I did procrastinate I was able to lock in the lower interest rate and now I am on my way to saving thousands of dollars. Thank you EdFed! - Noah J. Denver, CO
Student Loan Consolidation Info - How to Choose the Right Loan Company
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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.