Student Loan Consolidation

Author: Peter Gitundu
Student loan consolidation refers to the act of combining several student loans into one big loan managed through a single lender, so as to pay off all the other smaller loans. These consolidation loans are easy to get, especially if the loans to be consolidated are federal in nature. However, the consolidation loan comes with an interest rate that one may wish to consider before applying for the loan. The rate is weighted upon the existing rates on the student loan.

The figure is rounded off to the nearest 1/8 of a percent and in most cases it lies at 8.25%, which is normally slightly higher than the prevailing student loan rate. Other than this disadvantage, student consolidation loans are something to go for because they incur no costs. You will never be charged any additional upfront fees for consolidation. Loans that come from the Stafford and PLUS may charge some fees, but this is deducted from the disbursement check. As for the federal loans, these are charges that you will never have to deal with.

You may be wondering who is eligible to consolidate their student loans. Well, both students and parent borrowers can consolidate any outstanding education loan they might have. In addition, students and parents may combine their loans, especially if they are from the same lender. Once they are ale to do this, the interest rates chargeable are likely to be much lower and hence the whole process will be much more cost effective.
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A Consolidation loan scan be acquired from any lender, but be wary of those lenders who ask you to pay upfront to be considered for the loan. In most cases, these are scams. Many lenders will require you to have a given minimum balance before they can help you consolidate the loans. For example, there are those that require you to have not less than $7000 in arrears. The amount depends on the specific lender.
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Peter Gitundu Creates Interesting And Thought Provoking Content On Student Loans. Read More Of His Articles Here STUDENT LOAN CONSOLIDATION
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