Student Loan Consolidation Program - Finding the Best One
Student loans are such a pain. Of course they give you the opportunity to get a degree that you wanted, but then the time comes when your mail box is flooded with bills from several lenders and you are ready to scream. Luckily for you there is something you can do to make it less of a hassle. Applying for a student loan consolidation program will greatly benefit you. Find out how to consolidate your student loans the right way.
First, you will be paying off one loan instead of several. It is much more convenient; you will receive one bill every month and won't have to worry about missing a payment and being slapped with late fees. Also paying some of your bills late can hurt your credit history. Consolidating all your student loans into one will help you avoid this.
Second, loan consolidation can save you a lot. The goal of consolidation is to let you make lower monthly payments. The interest rates are also lower, than on the loans before consolidation. This is very important when you are just starting a new career. Saving on your student loan payments will leave you with extra cash for other important things.
Does bad credit prevent you from applying for loan consolidation?
If you have a bad credit history, it usually won't prevent you from being approved for federal loan consolidation program. With private lenders bad credit score can be a bit of a problem. So if you have any federal loans, consolidate them first.
Then make sure that you take care of your monthly payments before their due dates. This will improve your credit score, and you won't have any troubles consolidating with a private lender. It will also help you get discounts to save even more.
How to find the best student loan consolidation rate?
The rate shouldn't concern you because according to the federal law, all private lenders have to offer exactly same rate as FFELP (Federal Family Education Loan Program). Your individual rate will depend on the average rate off all outstanding student loans you currently have.
Some lenders advertise very low rates. But you have to bear in mind that most lenders offer certain benefits and discounts, and the rate advertised is usually what you get after a discount is applied. So if you are not eligible for the discount, your rate will be higher.
Most companies clearly state discount eligibility criteria, for example always making your payments on time or setting an automatic withdrawal from you account. But there can be other criteria as well, not mentioned until you actually apply for consolidation with this lender. So the only reliable way to find the best deal is to ask for quotes from several banks and other private lenders and compare them.
Another thing young graduates have to be aware of is hidden fees. When you apply for a federal loan consolidation program there will be no additional fees. Many private lenders also don't have any fees. However, some lenders charge you additionally for consolidation, so you will have to ask if there are any additional fees.
Finding the best deal on your student loan consolidation program might take a bit of research, but since we are talking about thousands of dollars, savings can be substantial too. The easiest way to get your quotes is to visit lenders websites and ask for a quote online. And remember, you are allowed to consolidate your loans only once, so it is important to make the right choice the first time.
Article Title : Student Loan Consolidation Program - Finding the Best One
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!
How EdFed Helped others!
Thanks for all your help during the entire consolidation process. It was great only dealing with one person! - Matt B. Los Angeles, CA
Student Loan Consolidation Info - How to Choose the Right Loan Company
The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.
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.
Our Select 5/Graduated Payments repayment option allows for interest-only payments for the first 2 years of repayment. In the third through fifth years, payments increase to include a portion of principal. In the sixth year, payments increase to level installments of principal and interest payments for the remaining term of the loan.