Student Loans ConsolidationWith the cost of education spiraling, it is now necessary for many people to take out student loans in order to finance there education. Upon completion many find themselves with a number of burdensome and expensive loans. One way to deal with this is to consolidate a number of loans into one, reducing the payment and making it far more manageable. What is the interest rate for a consolidated loan?The interest rate is calculated by taking the average rate of all of your loans then rounding up to the next 1/8th of a percent. The rate cannot exceed 8.25%. To find out exactly what it will be for you use the calculator at www.loansconsolidation.ed.gov.Will I save money?Possibly, but you will certainly lower your monthly payment. According to Sallie Mae, the leading provider of student consolidation loans you can reduce your monthly payment by up to 54%. This is done by extending the period of the loan, therefore the overall amount you pay back may be greater in the long run. You may pay of consolidation loans early however with no penalty.Am I Eligible to consolidate?In the USA the following loans are eligible for consolidation.*Direct Subsidized and Unsubsidized Loans. *Federal Subsidized and Unsubsidized Federal Stafford Loans *Direct PLUS Loans and Federal PLUS Loans *Direct Consolidation Loans and Federal Consolidation Loans *Guaranteed Student Loans *Federal Insured Student Loans *Federal Supplemental Loans for Students *Auxiliary Loans to Assist Students
*Federal Perkins Loans *National Direct Student Loans *National Defense Student Loans *Health Education Assistance Loans *Health Professions Student Loans *Loans for Disadvantaged Students
*Nursing Student Loans
How do I consolidate?You can consolidate through any bank or credit union that participate in the Federal Family Education Loan program, you can also do it through the U.S. Dept Of Education.What are the benefits of student loans consolidation?You will lower your monthly payments, make your finances more manageable and probably increase you credit score.Debt Repayment Share Your Tips And Thoughts On InvestingShare your knowledge and advice on investing. |