| A college education is likely one of the largest expenses, along with a home and a car, that many of us will take on. In fact, the expense is often so large that one loan is not enough to cover all of the associated costs. Many students must take out several loans.
After graduation, repayment of student loans can be complicated by different payment dates, lenders and amounts. The answer may just be college student loan consolidation. If you are considering student loan consolidation, here is what you should know.
Federal Student Loan Consolidation Can Make Student Loan Repayments More Manageable
You may be able to take advantage of the flexibility of choosing a payment plan and date that fits your budget. Available payment plans from Sallie Mae include:
- Standard repayment – the borrower makes monthly payments on the interest and principal.
- Graduated repayment – smaller initial payments are followed by periods of larger repayment periods at predetermined intervals.
- Income-sensitive repayment – the monthly repayment amount is based on borrower income. Income documentation is required.
- Extended repayment – repayment terms can extend as long as 25 years.
You may significantly reduce your monthly student loan repayment amount. You may also reduce your student loan interest rate. Lenders such as Sallie Mae even offer discounted student loan consolidation rates for borrowers that:
- Pay on time
- Use the automatic payment feature.
Student Loan Consolidation Applications Don’t Require a Credit Check or Application Fee
Sallie Mae offers an automated online application that takes only a few minutes to complete. Best of all, there is no cost to apply. The application is appropriate for private student loan consolidation as well as government student loan consolidation. You can even consolidate private and federal loans to enjoy the convenience and savings of one monthly payment. Student loan consolidation is available for many loans. These include:
- Nursing Student Loans
- Perkins Loans
- Parent PLUS
- Graduate PLUS
- Loans for Disadvantaged Students
- Supplemental Loans for Students
- Stafford Loans.
The balance of the loan must be $5,000 or greater.
Research student loan consolidation plans carefully. There are countless student loan consolidation programs available. Some are more advantageous for students than others. A student loan consolidation calculator can help you estimate your costs and savings with a consolidation loan. Even if you have previously consolidated your loans but are unhappy with your new terms you can consolidate your consolidated loans. Give careful thought to why your current plan is not working for you and invest some time in researching a plan that better fits your needs.
Student loan consolidation may eliminate some benefits of the original loan (e.g. forbearance or deferment eligibility). Be sure you fully understand the terms and conditions of any student loan consolidation plan you choose.
Consolidation loans do not carry a prepayment penalty, so pay a little extra when you can to save on interest expense.
|
