With the economic crisis looming large the world over, the majority of the people including students are found to be in a debt trap. Trying to get out of this situation can be really tough for many since they might hold multiple loans that need to be paid off with varying interest rates and tenure. Hence, making monthly payments can become a difficult task and also disturb the monthly budget. Hence, those searching for simpler options can find solace by finding the best way to consolidate student loans. This will actually help them to lower down their monthly payments. Having the loans consolidated, life can become much more beautiful and easier.
Some key features to know about student loan consolidation
The best way to consolidate student loans and know which one is the most appropriate and suitable for individual needs is to seek the help of the experienced and qualified counselors. Some of the key features are mentioned below:
- Rather than paying monthly payments simultaneously, that too with each having a different date, the person can simply make single monthly payments through loan consolidation. He can seek the best way to consolidate student loans by checking out the different lenders offering better interest rates and tenure.
- Once the loans are consolidated, the person is offered a fixed rate of interest capped at 8.25%, much lower than the existing loan interest rates.
- On consolidating the loans, the monthly payments become much less when compared to a total of the individual monthly loan payments made currently.
- Repayment period also increases with student loan consolidation. Rather than paying off the loans in 10 years, the person can consolidate them and have loan repayment period extended to about 30, 20, 15 and 12 years.
- It is possible to pay electronically the single consolidated loan. Several lending companies do offer 0.25% off on interest rate, in case, monthly installments are paid electronically.
- Processing fees are not required for consolidating loans. The entire process is offered free of cost, thus saving the person precious money.
- Both parents and students have taken student loans can consolidate their loans. But individual loans of studies and parents cannot be clubbed together for availing consolidation. The reason is because, consolidation is possible for loans from a single borrower.
- There is the option to have student loans consolidated with any preferred lender. This way, the lowest rate of interest can be availed along with other benefits.
The above features of consolidated student loans is what makes them interesting and exciting for students and their parents to avail. It makes their life much easier and also allows them to focus on their career and job. Also, with loan consolidation, the person is able to know the amount that is required to be shelled out exactly every month. Besides this, he needs to pay just a single loan amount every month until the successful completion of the tenure. It can be debited directly from his bank account or paid electronically. More information can be availed from https://consolidatestudent.loan.