Student loan consolidation - frequently asked questions
You might have heard about the consolidation of student loans already and asked what it really is about. There may still be many questions in your head, but as you read on, we hope you will enter basic information about the student loan in the form of frequently asked questions are provided with answers.
Question 1. What is the student loan consolidation?
The student loan consolidation, also known as private student loan is the first merge all your current loans into a single loan. It has a fixed interest rate, usually much cheaper than the interest you pay, and is managed by a single lender.
Question 2. What makes the different student loan consolidation?
The student loan consolidation is unique in that it has certain advantages that come with student loans. For example, the interest rate for your consolidation loan may be tax deductible. It is no longer possible amount available, and you have a repayment that you can potentially delay or postpone temporarily. And if the borrower dies, the debt is discharged.
Question 3. consolidate Why would I?
The main reason to consider the consolidation are as follows:
o roll your student loan payments into a single monthly bill
o locks onto a fixed, usually lower, interest rate for the term of your loan, which could save thousands of dollars (depending on the original, overall interest rates of your previous loans)
o flexible repayment options during potentially difficult times, without costs, charges or prepayment penalties
You should consider consolidating your loans if it has a lower interest rate, without a question, compared to what you currently pay, especially if you have a hard time to deal with your monthly payments. On the other hand, if you are close enough to repay your existing loans, and consolidation is not worth it.
Question 4. What are some traps to consolidate your student loan?
Because you can actually extend your repayment period, you can make smaller payments each month. but keep in mind that with each passing month, the interest rates are also implemented. It might seem that you save each month by paying less, but you still lose a lot of money at interest. On the other hand, since the student loan consolidation is no penalty for early pay off your debts, then you can do more than required payments when your income increases.
Question 5. Should I consolidate my loans if all are in one place?
You do not have to, but if you want you can. The lender will just repackage your loans so that they have the characteristics mentioned above. If you only have one loan company, which may limit your options with which to consolidate. If you are a student and you need another loan, try to get loans from other lenders so that you have more choices when you graduate.
Question 6. How do I know my interest rate?
Certain statements will show you the rate of the loan, then try to control them. If it is not, you can always call your lender and ask. Be sure to have all rates even if you have multiple loans. The interest rate for a consolidated loan is based on the overall interest rate on your existing loans.
Question 7. Can my spouse and I consolidate our loans together?
Yes you can, but it might be a bad idea. On the one hand, if you want a report, both of you must meet the criteria. If one of you dies earlier, while the other is obliged to pay the debts of the deceased. If you later separate or divorce, you will still have to pay the loans off together.
Question 8. When should I consolidate my loans?
It is best to consolidate your loans during the six months grace period. In the meantime, you will get a lower interest rate. However, it is wise to consolidate your loan on your fifth month grace period so that you will not lose the rest of the grace period.
Question 9. Where can I get a consolidation loan?
If you are satisfied with your current lender, you can consolidate them. If it is a bank, call them and ask what they can do for you.
Question 1. What is the student loan consolidation?
The student loan consolidation, also known as private student loan is the first merge all your current loans into a single loan. It has a fixed interest rate, usually much cheaper than the interest you pay, and is managed by a single lender.
Question 2. What makes the different student loan consolidation?
The student loan consolidation is unique in that it has certain advantages that come with student loans. For example, the interest rate for your consolidation loan may be tax deductible. It is no longer possible amount available, and you have a repayment that you can potentially delay or postpone temporarily. And if the borrower dies, the debt is discharged.
Question 3. consolidate Why would I?
The main reason to consider the consolidation are as follows:
o roll your student loan payments into a single monthly bill
o locks onto a fixed, usually lower, interest rate for the term of your loan, which could save thousands of dollars (depending on the original, overall interest rates of your previous loans)
o flexible repayment options during potentially difficult times, without costs, charges or prepayment penalties
You should consider consolidating your loans if it has a lower interest rate, without a question, compared to what you currently pay, especially if you have a hard time to deal with your monthly payments. On the other hand, if you are close enough to repay your existing loans, and consolidation is not worth it.
Question 4. What are some traps to consolidate your student loan?
Because you can actually extend your repayment period, you can make smaller payments each month. but keep in mind that with each passing month, the interest rates are also implemented. It might seem that you save each month by paying less, but you still lose a lot of money at interest. On the other hand, since the student loan consolidation is no penalty for early pay off your debts, then you can do more than required payments when your income increases.
Question 5. Should I consolidate my loans if all are in one place?
You do not have to, but if you want you can. The lender will just repackage your loans so that they have the characteristics mentioned above. If you only have one loan company, which may limit your options with which to consolidate. If you are a student and you need another loan, try to get loans from other lenders so that you have more choices when you graduate.
Question 6. How do I know my interest rate?
Certain statements will show you the rate of the loan, then try to control them. If it is not, you can always call your lender and ask. Be sure to have all rates even if you have multiple loans. The interest rate for a consolidated loan is based on the overall interest rate on your existing loans.
Question 7. Can my spouse and I consolidate our loans together?
Yes you can, but it might be a bad idea. On the one hand, if you want a report, both of you must meet the criteria. If one of you dies earlier, while the other is obliged to pay the debts of the deceased. If you later separate or divorce, you will still have to pay the loans off together.
Question 8. When should I consolidate my loans?
It is best to consolidate your loans during the six months grace period. In the meantime, you will get a lower interest rate. However, it is wise to consolidate your loan on your fifth month grace period so that you will not lose the rest of the grace period.
Question 9. Where can I get a consolidation loan?
If you are satisfied with your current lender, you can consolidate them. If it is a bank, call them and ask what they can do for you.
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