Still struggling over the loans management a few years after graduation? Understanding student loans consolidation options will help you choose the best step to pay your debts and focus on your career and the better things in life, and mostly your studies, if you’re still a student.
Firstly, student loan consolidation allows you to combine your current federal or private loan into a solo mortgage, resulting to lower payments every month. Along with its beneficial trait as a step toward loans and debts management, consolidating loans takes away your preoccupation with money you need to pay off. This allows you more time to hasten your career, focus on your other plans in life and manage your present finances.
There are two student loan consolidation categories, with its features elaborated below. Stay in power over your student loans and read on…
Federal student loans consolidation is made available at one time with lower interest and longer payment terms. Monthly payment for this type of loans consolidation is “friendly” to your budget, and its simple process takes the loans hassle off your back. After one loan, there is only one monthly check to be paid, already reduced. The only thing is, the full total cost of loan has to be repaid.
If you’re currently not enrolled and has fully repaid loans without miss, you are qualified for federal student loan consolidation for $10,000 minimum. This type of loans consolidation also welcomes graduated students who are in grace period.
Most loan companies and institutions offer federal student consolidation loans like banks, secondary markets and credit unions. While students with federal educational loans are eligible for consolidation loan, private education loans are not. Also, it is not wise to mix both types of loans to be consolidated, with federal loan interest being tax deductible and private student loans are treated the same way as normal loans. Sticking to federal consolidation loan is a sensible move as you will not lose the benefits that otherwise is blown when you combine both loans consolidation types.