Student Loans Can Be Paid Off Easily

2007-03-08 10:33:40

( Financial )



Student loans may remain a burden even after you have long completed your education. While student loans often have lower interest rates than other loans, some individuals often take on more than one student loan in their lifetime. Student loan consolidation may offer the solution of a single monthly payment over a longer period of time. If you choose to consolidate student loans, you will pay less every month but this time, under a much higher interest rate.

To qualify for consolidating student loans, you must first be out of school to be able to begin consolidation. Only the federal direct loan program or federal student loan consolidation allows you to consolidate your student loans while you are still in school. But you must take precautions in federal student loans because private, non-governmental companies may be hesitant to consolidate them since they stand to lose a lot of money. You just need to find the right company for student loan consolidation that will also accept federal student loans.

There is also a minimum amount requirement for the total of the outstanding student loans you wish to consolidate. Aside from that, you also need to be current and not in default for student loan consolidation. It may take some time, usually up to sixty days, before approval is given on student loan consolidation. In the meantime, you have to make the same payments as you used to while you are waiting for approval on consolidation.

There are a number of websites on the Internet that offer good deals on student loan consolidation but you need to gather as much information as possible before making the decision to consolidate. You must keep in mind that once you consolidate student loans, you cannot undo the process. The only options you have are to pay them off as soon as you can or to find a better plan and reconsolidate.


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