Student Loan Consolidation Rates and Information

2007-03-08 10:33:40

( Financial )



Student loan consolidation will help in paying off your student loans. It will make your repayment to be more cost-effective and efficient to your financial future. Consolidation will lock in a student loan consolidation rate for the entire life of your loan. You do not have to worry about increasing interest rates as your student loan consolidation rate will remain the same. Your monthly payments will remain the same as well. You will know what your interest rate and your monthly payments will be with no hidden surprises.

Besides locking in a student loan consolidation rate, you also have the flexibility to pay as much as you want per month once you are more comfortable and stable in your job with no penalty charges. Qualifying for student loan consolidation is a very simple process. Lenders do not need checks or income verification to process your request. Collateral and guarantors are also not necessary.

Most student loans are eligible for consolidation. However, it is advisable to separate your private from your federal student loans. You may want to visit your local student assistance center to verify which loans are eligible for consolidation.

If you forget to include one or more of your loans into consolidation, most lending institutions offer a grace period for you to add any additional loans you may have left out. Applying for consolidation within your grace period also makes you eligible for further reductions in your rates. If you consolidate, you are not only locking in a lower rate during your grace period, you also do not need to begin repayment until after your grace period expires.

Student loan consolidation is also very flexible. Most lenders allow you to change or restructure your repayment schedule once a year without any additional penalties. Prepayment penalties are also not applicable.


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