Category: Student Loan Consolidation

You can lengthen your repayment term

Payment relief is one of great benefits of consolidating federal school loans. By combining all of student debts into one consolidated debt, you can lengthen your repayment term from the standard ten years to up to thirty years, depending on the amount of your education debt. So, if you’re having trouble meeting your student payments, contact your lender. You may qualify for a deferment, forbearance, or repayment alternative that is more affordable.

With a lower monthly payment, you will have more money available to meet other living expenses, including car payments, housing expenses, and career-related necessities. Because there are no penalties for overpayment, you can make larger payments and reduce your repayment term when it becomes affordable. Just learn more how to student loan consolidation works in the step-by-step.

Chance to use consolidation to get out of default

If you are in default on your student loans, you cannot get new loans to go back to school, and you face severe collection procedures. Consolidation can give you a fresh start. You can consolidate defaulted student loans into a direct loan consolidation and stop collections including garnishments and tax intercepts. Be aware that if you are in default, your balance will go up after you consolidate, because collection fees will be added to the loan.

Unfortunately, private loans are not eligible for consolidation into a direct loan consolidation. And, beware of consolidating federal loans into a private consolidation loan. Federal loans have important borrower protections that you lose if you choose to consolidate federal loans with a private lender. Also, federal consolidation loans generally have lower interest rates. Only direct loans offer federal consolidation loans these days.

You can apply online for a direct loan consolidation. All applications submitted online are processed more quickly than those submitted by mail. Be sure you include the right information about the loans you are consolidating. You’ll need to know the balances of all your loans to complete the application. If you make mistakes on the application, it will probably delay processing.

Make sure that you understand the financial impact

Before you start to consolidate your debts, you need to make sure that you truly understand the financial impact of loan consolidation. There are numerous companies offering various types of loan, and even overall debt consolidation as the one size fits all fix to every debtor’s worries. Student loan consolidation is being offered as the quick and easy solution to all student debt-related problems.

Granted, consolidating your loans can be a quick fix to a number of complicated problems, especially when it comes to student loans. This act can quickly transform your student debt from a confusing mess of loans with multiple lenders, interest rates and loan types into one big loan with one interest rate and one monthly payment. Before anyone considers consolidating any kind of debt, they need to know what they are getting into. Loan consolidation can produce excellent benefits on the right borrowers’ financial portfolio, but it can also wreak long-term havoc on the wrong borrowers’ financial portfolio, as well.

When you have many differing loans with different lenders, you likely have different interest rates as well. Having these debts separate allows you the freedom to send greater amounts of money to the higher rate loans. This will help you pay down your debt faster, and result in a reduced amount of interest paid over the life of the student loans. Loan consolidation has different qualifications for certain repayment options. Keeping your loans separate for the appropriate time frame can provide greater flexibility in your repayment assistance.

What options are for loan repayment

Loan consolidation for students have recently a hot topic in the news as interest rates doubled this month due to failing efforts from Congress to hold financial-aid rates down for future borrowers. Meanwhile, those struggling to find jobs that can support their post-college student aid, which is borrowed for the sake of higher education, are now wondering what their options are for loan repayment.

National Student Loan Relief – NSLR works directly with the Department of Education to offer Federal Student Loan Consolidation programs. Borrowers who hold multiple federal loans can combine those debts and pay just one monthly payment. Extended terms can also mean lowering one’s monthly payment. Private loans cannot be consolidated with federal loans. NSLR also works with the Department of Ed to enroll eligible borrowers in Student Loan Forgiveness and Teacher Loan Forgiveness programs.

NSLR works with thousands of borrowers to help them get into a program that will give them student loan relief and create a more financially feasible situation. National Student Loan Relief has years of experience with client services, financial services, loan counseling, process management and document processing and is in the business of helping student borrowers consolidate their debt and get a handle on their monthly payments.

Lower rate with private consolidation loan

Good Way to Consolidate Private Student Loans
If you have more than one private student loan from a bank or other lenders, you can make life easier by consolidating private student loans into one loan with one monthly payment. Student loan consolidation payments could end up lower than your current payments.

Loan Consolidation Can Help Save Money
Private student loan consolidation may potentially help you save time and money with one easy low monthly payment on your private student loans. Depending on the details of the borrower’s current private student loan debt, a private student loan consolidation can potentially lead to thousands of dollars in savings on annual payments and interest expense.

Lower Rate With Private Consolidation Loan
Since the interest rates on private student loans are based on your credit score, you may be able to get a lower interest rate through a private consolidation loan if your credit score has improved significantly since you first obtained the loan. Also, you can try talking to the current holder of your loans, to see if they’ll reduce the interest rate on your loans rather than lose your loans to another lender.

Private Consolidation Loan Is a Single
A new consolidation loan issued by the bank or credit union that pays off all, or some of your existing private loans. In most cases your old loans were probably held by other banks; not the one you are already with. If you are approved, the new lender will pay off the old loans on your behalf and roll that obligation into a single, new consolidation loan.

Private Consolidation Loans are Offered Through Banks
Students with private loans must apply for consolidation directly through a consolidation loan lender. Unlike federal consolidation, which is through the Federal Department of Education, private consolidation loans are offered through banks, credit unions, and other private lending institutions. Most lenders allow borrowers to file the application directly on their website, making the process straightforward.