Shortly after you achieve your life long goal of graduating with your college degree you realize you are going to have to start paying off your student loans. Life after graduation is great, except for one thing – the student loans! With all of the new changes and expenses which may come your way after graduation, worrying about how to pay off your student loans can seem overwhelming and like an impossible task. The good news is, you can consolidate your student loans and lower your monthly student loan payment as much as 60 percent!
Consolidating your student loans is the process of merging your private loans with your federal loans and combing them into one single loan. The new loan will take longer to pay off, but the great thing about consolidating your student loans is it will offer you better monthly rates and will actually save money in the long run. It is important to know there is not actually a “merger” taking place and you are in all reality borrowing a new loan. The new lender will then pay off all of your older loans and you will now only owe on the new loan.
The key to lowering your monthly payments on your student loans is to shop around and find the right lender and the right interest rate which will fit into your budget. When comparing lenders there are a lot of things which you should consider, among the top things to consider are: interest rates, payment fees and even loan terms. There are also a lot of reputable online loan companies, so you may even be able to take care of all your student loans via the internet and comfort of your own home.
Why Should I Consider Consolidating My Student Loans?
- There are a few reasons why people should consider consolidating their student loans. Basically, if there is a way for you to save money, it seems like it is the smart thing to do, and by consolidating your student loans, you are more often than not, able to save money n the long run.
- In many cases there is going to be an initial fee to start a new loan – this does include consolidating your student loans. As long you can always justify the upfront cost and the big picture ends up saving you money, it is worth looking into and investigating further.
Reputable Online Student Loan Consolidation Companies:
Some Benefits to Consolidating Your Student Loans:
- You can receive a lower monthly payment obligation and in some cases it may be as much as 50% lower than you are currently paying.
- There are never going to be any penalties for paying off your student loans earlier than you anticipated.
- You are able to consolidate your student loans without having to run a credit check
- You are able to consolidate your student loans without having to find 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.