GRADUATE STUDENT LOANS: Aiding Your Graduate Education

2007-03-08 10:33:40

( Financial )



Gone are the days when basic education will let you earn a comfortable living. Today, even a college degree may not be enough to secure you that dream job. Just when you thought you could finally save up after paying off your college student loans, you may once again find yourself applying for graduate student loans to finance your graduate studies.

Lenders offering graduate student loans are not as abundant as those offering college student loans however. But that does not mean that you are without choices. Several loan options are still open for everyone. You still have the alternative of applying for both federal and private college loans although federal loans generally have lower interest rates.

Graduate student loans can be used to cover your school-related expenses for your continued education. Should one loan turn out to be not sufficient enough to pay for all your expenses, acquiring several loans can be a solution to your problem.

However, while monthly loan repayment fees are usually minimal, repayment for numerous loans can also be taxing and even burdensome when your fees sum up to a hefty amount. To make payments lighter for you, lenders offer college loan consolidation options.

With loan consolidation, the consolidating company pays up your debts. The company then issues you a new loan amounting to the total cost of all the loans you consolidated. What about interest rates? The interest rate for consolidated loans is the average interest rate of all the bundled loans. And since you are paying for only one loan, the monthly repayment fees are substantially lowered and your repayment terms are lengthened.

When you decide to consolidate, it might be better to put together low-interest loans together into one account while putting into another all those loans with higher interest rates. Put simply, bundle together loans with similar interest rates. By doing this, you will avoid having to pay much higher interest rates for those that initially had lower rates.

More importantly, it would also be good for you to survey several lending companies first before obtaining graduate school loans or consolidating them. You will never know when the best rates and the best deals will come your way.


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