10 Top FAQ About How The Student Loans Consolidation Works

Do you struggle with the heavy student loan repayment burden or is it soon coming? Do you have several debts from several lenders? Would you like to make it simpler? The student loans consolidation can be a solution.

When a graduate plans the student loans consolidation, he has to remember that the question is about his or her total financial planning and life planning. The consolidation is not a magic trick to swipe away all the financial problems. It can even worsen them, if made with unsufficient information. I have collected into this article the main topics, which you have to think.

1. You Have To Make The Student Loans Consolidation During The Grace Period.

The Grace Period is the 6 months period after your graduation. During this period you will be free from the repayments. This is the time, which the Federal Government has ordered for the consolidation and they have even granted benefits for those who do it, for instance a 0.6 % reduction in the interest rates for the whole loan running time.

2. Why The Student Loans Consolidation Can Reduce The Monthly Bill Even By Over 50 %?

When you think it, its natural. People, who are studying have zero negotiation power with the lenders, i.e. with the banks. The lenders will dictate the terms. But when the student has graduated, and in some cases got a job, his status will be totally different. He can even shop around for the best consolidation deal.

This means lower interest rate, because the rate reflects the amount of risk for the lender. If at the same time the running time will be lengthened, the monthly reduction can be even over 50 % compared to the situation, when the graduate will do any changes.

3. Can You Consolidate Private And Federal Loans?

Nope. The only way is to consolidate all the private ones and all the federal ones.

4. Can You Consolidate Yours And Your Spouse´s Loans?

Nope. And that would be very unwise also. Think, if you will divorce and all your student debts will be under your name. You should pay them during the next 30 years on behalf of your spouse.

5. Can You Consolidate Yours And Your Parents Loans?

Very simply, you can not.

6. How The Loan Management Can Be Easier?

Think, that you would have 10 student loans, all from the different lenders, both the private and the federal ones. All the loans would have different repayment times and terms. For some this situation would not do any harm, but most borrowers would like to have only one or two loans. This is one of the major benefits of the consolidation.

7. What Is The Longest Running Time Available.

The long running time means lower monthly repayments. But a wise borrower will think also the other side of the coin. The more repaymnt installments he does, the more interests he will pay, i.e. the more expensive the whole program becomes. The longest repayment time is 30 years.

8. How Can You Pick The Best Lender?

As mentioned earlier, the graduate has a negotiation power. He can ask offers from several lenders and this, called the loan shopping, is the key to the best deal. It is wise to follow the student loans consolidation market for a longer time to research, what kind of offers the lenders use and to hit, when the real good one appears.

9. Do The Sudent Loans Consolidation Rates Fluctuate?

They do, because these products belong to the financial products which follow the economic situation, i.e. when the economy is growing, the prices go up and vice versa. This makes the timing ideal, if the graduate has an opportunity to wait. Of course the graduation and the Grace Period will dictate a lot.

10. Is The Student Loan Relief Possible?

The problem is, that the student loans represent a huge amount of dept nationally in US. The tuitions have increased and also other studying costs and this has led many students and graduates into big financial problems. President Obamas administration tries to find a way out from this problem.

When a graduate thinks the student loans consolidation he easily thinks only the lowest monthly payment program. This is natural, because these people are not familiar with the life planning nor the financial planning. However, it would be wise to think the pros and cons carefully.

Juhani Tontti, B.Sc., Marketing, Operates An Informational Website, Which Shares Top Quality Information About How The Student Loans Consolidation Works, Click In!

5 Steps For Consolidating Student Loans, Turn Variable Rates Into Fixed One

If you have several loans and meet difficulties to pay them in time, you can try to solve the problem by consolidating your student loans. The federal loans can be paid along the Income Based Repayment Plan and the private ones with the online debt settlement or the private student loan consolidation.

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5 Facts Why The Consolidated Student Loans Give Reliefs

You may have heard about the consolidated student loans already at school, but most probably your information lacks some important things. This article shares the key steps how to consolidate student loans and why it can help you.

The great principle is, that you cannot consolidate federal and private loans, but you can consolidate all your private student loans and all your federal loans into the consolidated student loans. When you have Federal Stafford, PLUS, or Perkins loans, you can consolidate them into one loan.

1. The Steps For Federal Student Loan Consolidation.

First you have to do the homework. Dig all your student loan papers into one pile and look, what you got. You may have bot subsidized and unsubsidized Stafford loans for each year but also Plus and Perkins loans. Now when you want to make the federal student loan consolidation it is wise to contact the lender.

The consolidation process is a good time to ask offers for the rate reductions, when paid automaticly, for example. It is wise to ask offers from several lenders, starting with the wide list and dropping away the most expensive ones. Note, that the lenders use a lot of special offers, which honestly can mean great reductions.

After you have found out the best lender, just sign your consolidated student loans papers. What happens now is, that you pay away all your old loans with the new one and will have to pay only for one federal loan once a year. If you have been able to make the lenders to compete strongly for your deal, most probably you have got lower payments. Remember to utilize your Grace Period.

2. The Steps For The Private Student Loan Consolidation.

Not all lenders are willing for the private student loan consolidation. However, the process starts with the homework. You have to collect all your papers together to get the picture. Then you have to surf in the Internet to find out the potential lenders and to ask offers with the same information.

3. You May Or May Not Be Eligible For The Consolidation.

You have to check whether you meet the minimum loan balance and interest rate requirements. If you will, you have to remember that you are now the buyer and it is your job to ask special reductions and other benefits.

4. The Shopping Is The Route To The Best Consolidated Student Loans.

Some graduates still think, that the student loans are priced with the fixed prices. This is absolutely not true. The prices of these loans follow the market prices, which follow the general demand in the economy. During the recession the lenders use a lot of special offers to keep the sales machine humming. These can be very short term ones. The borrower has to follow the market for a longer time to find out the best deals and to be able to hit, when the good offer appears.

5. What Benefits The Consolidated Student Loans Bring?

What most graduates are looking for are the lower monthly payments. Some are looking for simplier payment schedule or even only one payment system per year. The longer payment time has also bad influences because a borrower has to pay more interests. One trick is to agree about the payment time, which follows the income development, i.e. when the incomes will grow, the payments follow.

Juhani Tontti, B.Sc., Marketing, Recommends To Do The Homework For The Consolidated Student Loans To Get The Good Results!