Do you have multiple student loans tearing enormous holes in your pockets?
Do you want to learn how you can save money on your loans, get a better interest rate, and save hours of time on monthly paperwork?
Student loan consolidation is one of the best ways for you to do exactly that. And as you read this article I’m going to tell you how you can consolidate your loans to breath new life into your wallet.
By the time you’ve finished reading this article you’ll know:
What Exactly is Student Loan Consolidation?
Who is the Best Candidate for Loan Consolidation and Why?
What Type of Loan is Best For Your Needs
As you continue to read you’ll become a veritable expert on loan consolidation! That sounds pretty good, right?
So, What Exactly is Student Loan Consolidation?
Basically, loan consolidation is the practice of taking out one big loan to pay off all of your smaller loans. To be more specific than that you’ll have to first pick out what type of loan you want to consolidate to, but I’ll talk more about that later.
The benefits of doing this are numerous:
You can get a Longer Term Loan to spread out your payments better
You can get a Better Interest Rate to save yourself money
You can get a Private Loan to avoid dealing with the Federal Government
You can save yourself the hassle of filling out multiple loans’ paperwork each month
As you can see, under the right circumstances it seems foolish NOT to consolidate your loans. So who exactly is the best candidate for this practice?
Who is the Best Candidate for Consolidating Loans?
Well, it’s pretty simple actually. If you’re still in debt coming out of college then I’m willing to bet that you have multiple loans you need to pay off. In fact, I’d be willing to be that you’re really struggling to pay off the loans you already have, simply because of high interest rate and being responsible for so many loans.
I mean come on, it’s a lot to keep track of!
So if your a student or grad and you’re struggling to get out of debt, or just want to pay off all your loans as fast as possible, then student loan consolidation is a great idea for you.
What Type of Loan Should You Apply For?
To be honest a lot of this is going to be your own research. However, I can give you a few pointers in the right direction.
Here are a few questions you might ask yourself:
Am I Eligible for Any Special Deals on Federal Loans?
How Long Do I Want My Repayment Period to Be?
Do I Want to Guarantee Myself a Low Interest Rate (Hint: Go for a Fixed Rate Loan)
Would I Rather Take the Chance Interest Rates Will Go Down?
What Private Loans am I Eligible For? (Oftentimes these are the best deals)
How Much Interest Am I Paying Right Now? (You’ll have to figure your weighted average interest rate)
As you can see there’s a lot for you to consider before proceeding to consolidate all of your loans. However, if you take the time to shop around for the optimal loan, chances are you’ll be able to save yourself thousands of dollars.
Now listen, I’m willing to bet that you still have a few questions about all this…And that’s totally natural! Believe me, I know…Loans are an extremely confusing subject.