School Loan Consolidation
School loan consolidation is a method that combine several student loans into one new loan. The purposes of getting this loan consolidation program is to reduce the interest rates and replace the previous loan terms to a longer term. By the term extended, monthly payments will reduce significantly, but at the end borrower is paying much in interest. Nevertheless, if borrower willing to make the same or extra amount, repayment term will be shorten.
Benefits of loan consolidation
1) Locked in the lower fixed rate - Some student loan's rate might be variable, it will increase according to market. By the consolidation program, borrower may choose the fixed rate option, interest will be fixed for whole repayment period.
2) One payment - Consolidate few payments into 1 payment, easier to manage. This will avoid payment defer, wrong payment and etc.
3) Lower monthly payment as well as overall loan interest.
4) Customize payment plan is available for borrower preference, the plans is design to suit borrower's situation.
5) For federal loan consolidation program, they allow borrower defer the payment if borrower further their study or taking professional courses.
6) Improve credit rating - payment in time and never default will improve borrower's credit history. Some lenders will have a rate reduction for punctual payment.
Please be remind that not all situations are suitable for refinance. If your loan debt is nearly pay-off it is not appropriate to take the consolidation offer. If you want to know whether your case is suitable for consolidation, you may use the loan calculator provided online to check the your status. it will show you overall interest need to pay and monthly installment.
For more information, please check out Student Loans Guide instead of School Loan Consolidation
Return to Loan-God Home Page
Return to top of the page