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!