subject: Lighten the Burden of Student Loans: Consolidation Loans & 5 Reasons To Consolidate [print this page] Being burdened with heavy student loan debt is never fun. Depending upon how much overall debt you have and what your cash flow situation is like, the feeling can range from that of a minor annoyance to something that is downright painful.
What compounds the challenge of student loan debt for many college graduates even more is the fact that they have to make multiple payments to different lenders each month. What's more, some of the loans may be variable rate loans, meaning the payments actually fluctuate over time based upon factors such as the prime rate. And, then there is just the pain in the neck of dealing with all of those payments each month.
Fortunately, there is a convenient way out of this situation that many graduates take advantage of: that of student loan consolidation. This essentially consists of paying off all of your existing loans with a new loan; all of the loans get rolled into a single loan with one of your existing lenders or with a completely new one.
If you are on the fence about whether consolidation is right for you, here are 5 reasons to consider consolidating:
1. Simplify Monthly Payments:
By consolidating, you will just have to make a single payment each month. This means less paperwork. And, with just one payment, you can more easily oversee your household expenses.
2. Get A Fixed Interest Rate:
Almost all consolidation loans are made at a fixed rate. This means that you can count on your payment not changing over time - until the loan is paid off.
3. Lower Your Payments:
Consolidation loans allow you to spread out your payments over more time, which can result in drastically lower payments. For example, your repayment period could be extended to up to 25 or 30 years (from a current 10 or 15 years).
4. Calculate Early Payoff More Easily:
With just one loan and one rate, you can more easily calculate long-term financial and debt projections for your household, including the effects of a potential future early payoff of your loan.
5. Deal With Just One Lender:
If you should need to speak to your lender at any time during the course of repaying your loan, you will be able to do so efficiently and easily by just having to contact one lender instead of two or three. Couldn't get much more simple than that!
Consider these 5 benefits for consolidating your student loans.
Lighten the Burden of Student Loans: Consolidation Loans & 5 Reasons To Consolidate
By: Robbie James
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