If you are a recent graduate or a student in college and you are looking for ways to consolidate your federal student loan, there are various options you can consider. With a lot of information on the internet, it can be challenging for people to find the right student credit loan consolidation firm. We are an established company that will link yours to lenders in our network who will finance the loan application. Many graduates ask how the direct consolidation loan plans work, it is imperative that you have all the information before you opt to take out a loan.
What Does It Mean To Consolidate Loans?
Before you begin looking for the best student loan consolidation firm, it is necessary that you know the basics of the loan. Consolidation means combining multiple federal loans into one and once you have consolidated all your loans, you will have one interest rate to pay and you will make one monthly payment. This is the main reason why many people opt for a direct consolidation loan. Private student loans can be consolidated with other loans. However federal loans cannot be consolidated with other loans.
Why consolidate your student loans?
You choose a consolidation plan if you are looking for a way to manage your finances. Once you have assessed your finances and other obligations, you will be in a position to choose the best federal loan plan for yourself.
- You will save money on the interest fixed rate. The most beneficial aspect of a federal student loan direct consolidation loan is that the interest fixed rate will reduce considerably because your lender will negotiate for a better federal loan interest for you.
- Peace of mind. This is not something that you should take for granted. Once you are settled with only one loan to repay, you can get back on track financially.
- When your direct consolidation loan, the terms, and conditions of the direct consolidation loan will override other existing terms and conditions of previous loans.
- It simplifies the repayment plans process and could help you save some money in the long run.
How do I qualify for student loan consolidation?
In ideal situations, you qualify for debt consolidation loans once you have graduated. However, you can qualify for the loans when you leave school or are enrolled as a part-timer. You should provide the following to qualify for the loans:
- A working checking account
- A valid national identity card
- Proof of recurrent income or employment
- You are not active military personnel
Should I consolidate my student loans?
A direct loan consolidation program is the right option if you are going for a student direct consolidation loan. It is imperative to note that loan rates vary from one lender to another. The interest rate is often determined by the weighted average of the interest of the loans that are being consolidated. When you choose to use lenders in our network, you will have to negotiate for an interest rate that will suit both of you. There is a high chance that you could get a better interest and quite possibly lower monthly installments.
Why choose student loan consolidation?
Lower monthly and interest rate
When you choose to direct consolidation loan, your lender will work on a program to lower the interest rate for your plan. The interest rate is calculated using your income and repayment options plans period.
There is nothing more challenging to a borrower than to manage many small loans. However, when you choose to consolidate your loans, your life becomes much easier during the repaying process.
- Easy to repay
When you have one loan program to repay, it is quite easy because you do not have to keep track of several high-interest small loans. You are in a position to manage your spending and managing your finances effectively.
There is a significant difference between private and federal student loans. You can consolidate private student loans using online loans. However, you cannot do the same for federal loans. Many Americans fail to meet the criteria of conventional lending institutions because they do not have the required credit scores. However, we offer you a way to access our loans by using the lenders in our network to finance your loans.
How to Request For a Student Consolidation Loan
The process of acquiring the best student credit loan consolidation is not complicated. Here are the steps to follow:
Get an evaluation
The loan program request process is quite simple and straightforward. You can fill out the loan request form and we will forward it to our network of lenders. The lenders will evaluate your loan request and verify all the documents submitted to ascertain if you qualify for the loan. Your options are determined based on income and other financial obligations. Consolidating student loans will help you get back to a better financial position because you will be dealing with only one loan.
Review available options
Your lender will give you all available options if you qualify for the loan consolidation. You can decide on the right plan, which will allow you to make timely monthly payments. You can ask as many questions as you like before you commit yourself to a certain loan type. Consider all features of the loan such as rates, late repayment options, and loan tenure, among others.
Sign and submit
Once you have chosen a student credit loan consolidation plan, you can sign the documents and let your lender evaluate and disburse the loan once all your documents are verified.
Get all your loans paid off
Your lender will pay off all your existing student loans after they approved your loan request.
Make monthly payments
After your lender has repaid all your loans, it is up to you to begin paying monthly installment repayments. This will allow you to get peace of mind and move towards getting out of debt.