How to consolidate Student Loans?

A federal student loan helps the student pay for tuition fees among other aspects. The availability of online payday loans has made it easy for students to find a federal student loan solution that will help them consolidate all the previous loans and deal with only one loan. In essence, loan consolidation combines several smaller loans into one. Students have been looking for ways to consolidate loans, and we connect lenders to borrowers who will fund their loans

What to Consider Before Consolidating Student Loans

Consolidating Student Loans
Consolidating Student Loans

Before you choose to consolidate your student loans with the right company have a look at the current fixed interest rate and the rate that your lender is giving you. You can use an online calculator to determine if the direct consolidation loan that you will repay will be more than what you are paying currently. Financial experts recommend that you should have criteria on how to deal with your loans, these include

  1.      Amount owed- as a borrower, you should understand the direct consolidation loan that you owe your creditors. This is essential because it will help you find a good interest loan that you can repay all your debts. Depending on the repayment schedule and balance, your monthly interest rate and payment will vary considerably. The total number of loans that you owe determines the interest rate charged by your lender. You should look for a lender who will give you affordable interest rate.
  2.      Think short term and long term. If you recently graduated, you should not base your decision to consolidate your federal loan on current financial situation. If you are looking forward to a better paying job then an income based repayment plan is the perfect option. However, the reverse is true as well and you should research properly before making a decision.
  3.      Interest rate: interest rates will vary from one lender to the next and we connect you to hundreds of lenders in our network who will evaluate your loan request and give you the terms and conditions of the loan. Look at the interest rate and the modalities of your loan repayment.

When you have several student loans, it is imperative that you consider consolidating them. There are numerous benefits in consolidating loans as a student. These include:

Easier Loan Management

We connect borrowers to lenders who will fund their loan request. You should choose a lender who is experienced and will help you get the best interest rate. Managing one direct consolidation loan is easier than managing several small loans with high interest rates.

Consolidating the loan with a low rate could be the best option

    •  low rate could be the best option
      low rate could be the best option

      In this category, you can consolidate all your student loans into one and request your lender to pay the direct consolidation loan on your behalf and pay your lender in advance. If you do not have assets to put forth as collateral, you should not be worried because we will connect you to lenders in our network who will finance your loan. The idea of borrowing is that your lender will pay off all your debt and you will repay the loan with your income.

  • Consolidating student loans is to reduce the overall debt and make things more manageable for you to repay easily.

Consolidation loans combine several student loans into a one bigger loan. Consolidation plans are available and you should make a wise decision when choosing one. You should consider the following when choosing a consolidation loan:

  1. Interest Rate

The interest rate of the consolidation loan is a weighted average of the interest on the loans which are being consolidated, and it is rounded up to the nearest 0.125%. Once you have filled out the simple loan application form on our website, we will connect you to lenders in our network. When you choose to consolidate the loans, make sure that you understand all the terms and conditions as well as the repayment process. Do not be fooled by lenders who promise low interest rates and then increase the rate gradually, making the repayment process difficult. More importantly, look at the interest that you will pay over time.

          2.  Cost Of Consolidating

 Cost Of Consolidating
Cost Of Consolidating

Apart from a small decrease in the interest rate of the consolidation, you should look out for any additional costs that are involved. We connect you to lenders in our network who do not charge any cost for consolidating the loan. Under no circumstance should you pay for a loan request or connection to a reputable lender who will finance your loan. We strive to give clear and straightforward terms and conditions. We do not charge any upfront fees. If you want to know more, please check out our frequently asked questions as well as contact our customer care representatives.

Who can consolidate student loans?

The parents and the student can consolidate their education loan. You can also contact your lender to give you further information on your eligibility.

  • You can consolidate your private loans into one loan and talk to your lender on the best way to deal with the loan. In order for you to consolidate your student loan, you should add previous existing loans into the current one and merge these loans together. However, it is important to note that you cannot consolidate just one loan. Essentially, you need to merge several loans to qualify for loan consolidation.
  1.  Repayment plans

 Repayment plans
Repayment plans

Student loan consolidation gives access to alternative plans that allows the borrower to get a good loan deal on the overall cost of the loan.

  • Consolidating student loan will reduce the interest rate, monthly repayment amount, and the total loan to be repaid. In most cases, small loans are associated with high interest rates that often increase the total amount of the loan to be repaid over time. It is important that you negotiate for a lower interest with your lender to allow you to get a good deal.
  • It is recommended that you stick to a plan that is beneficial and will work for you financially. We link you to reputable lenders and when you know how student loan consolidation companies work, you will be in a position to get the best deal.

Copyright © 2020 | All Rights Reserved