subject: Consolidated Student Loans - Is Your Rate Fair [print this page] The federal consolidated student loans offer a great help, especialy if a graduate has not received job within 6 months after the graduation.
On the other hand, if he has got the work, he may not have a need for the refinancing consolidated student loans and he will pay the loan quicker. However, he should look at the interest rates, because when he has agreed the loan during the student phase, his credit score must have improved.
More and more graduates see it impossible to pay the student loans, because they are unemployed or underemployed. Stats tell that around 80 % were unemployed after graduation.
1.The Benefits Of The Federal Consolidated Student Loans.
Usually the monthly payments of the federal debts are lower than those of the separate loans. The interest rate is fixed and can be maximum 8.25 %. The pre-payment penalties are not paid and there is no application fees. The maximum payment times are from 10 to 30 years depending on the amount of the separate loans.
2. The Student Debts Consolidation Gives A Boost For The Credit Score.
When a graduate has done the debt agreement, the old loans will be paid away and what happens? The credit score will improve immediately, because the many old loans are reported as paid.
3. Refinancing Consolidated Student Loans.
Can private student loans consolidated? Not with the federal ones, because they have special benefits. The consolidation gives only the benefit to make the management easier, because the private student debt consolidation cannot compete with the price.
But because in the private student debt consolidation the interest rate is based on your credit score, you may get cheaper debt, if the credit score has improved after you got the first debt. Especially if you now have a good job, your credit score has jumped and that makes the loan cheaper.
4. Pay Your Studying Loan Away With The Home Equity Loan.
It does not matter, how your loans are called, they have one common feature, they must be paid. If your home equity loan has lower interest rate than your studying debts have, you can pay your student debts away with the home equity debt and thus get the lower interest rate.
When you talk with the lender, it is crucial to ask about all fees and charges, because they can have some influence on the price of the debt.The origination fees, the pre-payment fees and the interest rates.
by: Juhani Tontti
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