Currently, the cost of higher learning is so high that most students find it difficult to keep up with the fees. Tuition fees are costly and this has forced many students to seek supplementary funds. Most have chosen student loans that are readily available. The loans are processed fast but it becomes difficult to pay back. You may be having more than one student loan and paying them has become hard. With us, you can manage this situation through a network of lenders offering student loan consolidation. Consolidation ensures you pay a reduced monthly payment.
Types of Student Loans
There are two different types of student loans. They include:
- Federal student loans: these are loans provided by the government. They are usually offered with friendly terms that are meant to suit your student profile. Actually, you do not have a lot of consolidation options when dealing with these loans.
- To consolidate these government loans, you have to communicate directly with the federal government. Fortunately, the government has programs that will accommodate your situation. You will be able to consolidate your loans and be able to pay low interest and low monthly payments.
- Private student loans: These are loans you can get from financial institutions. They are usually offered with strict terms. Normally, you will have to go through a scrutiny before you qualify. You would also have to choose from institutions like credit unions or banks. After making a decision, you can then settle for a line of credit or a loan at low interest and transfer the balance. Financial experts recommend the use of credit lines as the better option to transfer your student loan balance. Lines of credit give you a flexible payment plan as you will only pay if you use the balance. With an actual loan, you will have to pay as soon as the transfer is done.
- The interests on lines of credit are significantly lower than actual loans. There are instances that it would be better to use a home equity line of credit. However, this should be the last option after you have considered all other avenues.
Using the Consolidation Calculator
- When you have made your mind to consolidate your student loans and want to know the exact amounts, we are here to connect you to lenders who are ready to review your case. You can check through our vast list of lenders and will definitely find one who is suitable and favorable. With all this, you will also need to know your most appropriate options by using a student loan consolidation calculator. You can get a loan calculator with us to use in knowing the exact amount you are going to pay by consolidating your student loans.
- When you are searching for a consolidation offer, you realize that lenders have relevantly similar interests. Remember that even a small difference in number can make a significant difference in the total amount you pay. You need to know how much the small differences are and a student loan consolidation calculator will help you.
- The loan calculator works by taking into account the repayment period, interest charged and loan amount. You will enter the different loan amounts and interests charged for all your student loans. At times, you will be able to input a combined total amount of the loans. Ensure that you enter the base interest set for the consolidation loan. You will also find a part where you are required to enter the time for repayment. This will give you a clearer idea of the amount for each consolidation amount. The calculator will then give you an automatic response.
- Lenders in our network will work closely with you to ensure that you understand all the information given by the student loan consolidation calculator. Usually, the values are considered as estimates. This is because there may be other charges that are not included in the calculation.
Features of Consolidated Student Loans
- Student consolidation loans have several benefits and one of the major ones is their low monthly deductions and longer repayment period. When you consolidate government loans, you will be able to include all loans. With all the loans combined into one single entity, you will have a longer repayment period and reduced monthly deductions. Government loans when consolidated will also allow you to choose fixed interest rates.
- Even though federal loan consolidation looks appealing, the longer period of repayment may end in a larger amount. Longer repayment periods are usually accompanied by higher total repaid amounts. You would have paid more and will also not enjoy any available grace periods. It is therefore essential to set out your short and long-term goals in relation to consolidation.
- Having federal student loan consolidation will only lead you to pay more. However, if you are still studying, then this is the option. Most students find it more comfortable to pay less in the short term by spreading their payment to enter a long term period. This makes it difficult to choose a federal student loan consolidation as you do not know about the future consequences.
- It is a fact that student loans can create a very uncomfortable environment especially when you are required to pay all of them. Continuous payment can be overwhelming such that you cannot keep track. If you continue paying your loans differently, it will be difficult to save any money. This is why you need to consider consolidation through a student loan consolidation calculator. You have the opportunity to get a new loan from a lender. You will then use the loan to pay off your debt. The new loan will be subject to a smaller monthly deduction. In most cases, this will show the differences between living comfortably and having sleepless nights worrying about what your next move will be.
How to Prepare for Student Loan Consolidation
- First, you will have to research and search through the list of lenders is our network. If you are still studying, you can start preparing as immediately as possible. You have to do a prior search to choose appropriately. Ensure that all your loans are up-to-date with accurate records of payments. Check whether you have ever missed a payment that may be affecting your credit profile. However, this should not worry you as lenders working with us do not focus only on your credit score.
Generally, seeking consolidation is an effective strategy you can use to clear your student loans within the shortest time. The student loan consolidation calculator has made the process even more user-friendly. Having a rough idea of how much you are expected to pay as consolidation will be helpful while choosing between lenders. It will ensure that you choose a lender offering an amount that is close to your figure or slightly higher. The consolidation loan you get should be able to pay all your loans.