A lot of students who are gradating from college are then left holding a huge amount of student loans. Regardless of whether you have a PLUS loan, a Stafford Loan, a Federal Perkins loan, or private student loan, there are a wide variety of student loan consolidation services which are available to help consolidate all student loans into one single debt. By consolidating your student loans, this can result in a much lower interest rate, and in some cases this can also dramatically reduced monthly loan payments and help people pay off their debts much quicker. The good news is, many of the consolidation services will offer a fixed interest rates for the life of the loan, which allows you to lock that interest rate for as many years as it takes to pay off your student loans and you do not have to worry about the interest rates skyrocketing on you.
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What Should I Look For When Trying to Choose a Federal Student Loan Consolidation Company?
- One of the first things you should look for when choosing a student loan consolidating company is their cost of service. There are various services available and the type of service you may need will depend on your particular debt situation. The cost of the debt consolidating service will greatly depend on whether your bills are current , slightly passed due or if they have been past due for months, or even years. It is important to check into more than one debt consolidating company and to be as open with them about your situation as you can. By exploring more options, you will ensure yourself you are working with a company with whom you feel comfortable with and feel you are getting a great day with at the same time.
- Another thing you should consider when choosing a student loan consolidation company is the length of time it will take you to become debt free. The amount of time it takes will depend on your individual situation, so there is no set time frame which can be given up front. Once you have explained your financial situation to the debt consolidators, they will be able to give you an estimation of how long it will take to pay off the debt and for you to become debt free.
- Here is Texas A&Ms take on the benefits of Student Loan Consolidation – here
Some Benefits to Consolidating Your Student Loans:
- You can receive as much as a 50% lower monthly payment obligation.
- There are never going to be any penalties for paying off your student loans early.
- You are able to consolidate your student loans without having to run a credit check and without having a co-signer
- If you choose a federal loan consolidation there are no fee.
- Your consolidation loan interest is also going to be deductible on your federal taxes.