Student Loan Consolidation Application - 3 Steps To Lower Payments
Applying for student loan consolidation is easy if you have done your homework first.
Just walking blindly into the application process may leave you with a new consolidation loan that is not the best-possible deal for you. However, by take an hour or so to do a bit of research first, you stand to reduce your monthly payments and/or shave tens of thousands off of the total cost of your student loans.
Deciding To Consolidate Your Student Loan
The decision to consolidation usually begins with the realization that you are just having to manage too many different loan payments. When you have multiple student loans, you have to deal with multiple interest rates, loan types, repayment terms, and payment addresses to mail your payments. This can be a real pain.
But typically what really gets someone to take the required action to consolidate their student loan debt is the realization that doing so could save you thousands or tens of thousands in total payments over the life of the loan. Consolidation could also reduce your monthly payment amounts by spreading your repayment period out over more years.
Private Versus Federal Loan Consolidation
Before you start the application process, it is important to know the difference between private and federal loan consolidation. To decide which type is right for you, start by checking which type of student loans you currently have. If you have federal loans like Stafford, Federal Perkins, and HEAL loans, you will want federal loan consolidation. Otherwise, private is the way to go.
Student Loan Consolidation Application: 3 Steps To Lower Payments
When it comes to applying, take these steps to lower your payments:
1. Research your credit score: For private loan consolidation, your credit score plays a part in the interest rate for which you will be eligible. Tip: figure out the "weighted average" interest rate of your existing loans in order to know whether any offers you get represent a better rate.
2. Apply with multiple lenders: More choices is always better when it comes to money and lending; this is the basis of the free market system. And yet, so many people mistakenly opt to apply with just one lender. Don't make the same mistake, or you may be leaving money on the table! Submit applications to at least 5 lenders who specialize in consolidation loans.
3. Never accept the first offer you get: Ask for at least two offers from each lender - always ask if they can do better. Hey, if you don't ask, you will never know.
Bonus tip: choose a loan term (i.e., repayment period, in years) that is the shortest possible while still allowing you to have manageable monthly payments. Doing so will allow you to make your payments, but will also save you money on the total cost of your loan.
Take these 3 steps to have a much better chance of lowering your payments for your new student consolidation loan.
Student Loan Consolidation Application - 3 Steps To Lower Payments
By: Robbie James
Short-term Installment Loans- Finance For Rushed Conditions Bridging Loans Get You Close To Your Dreams Bank Accounts For Bankrupts - Opportunity For Financial Weak People Cheap Secured Personal Loan – 3 Frequently Asked Questions Payday Loans-settle Your Small Debts Cheque Loans: A Viable Solution For Severe Monetary Crisis Loans For Dss: Feasible Funds That Takes Of Impending Crisis Pitfalls Of Defaulted Student Loan Clickbank Commission - How you can explode your Commissions Debit Card Payday Loans: A Viable Option Indeed Christmas Loans - Smile In This Year Festive Time Personal Loans: Best For You Quick Loans: Easy Funds To Settle All Your Impending Needs