Five Benefits of Student Loan Consolidation

Five Benefits of Student Loan Consolidation

Are you fed up with paying monthly interest on student loans? Are you worried about cash flow problems that could prevent your student loan payments on time? This is something I experienced, and I am glad to report that there is a solution. This is student loan consolidation.

What’s Student Loan Consolidation?

Consolidating student loans means that all of your student loans are consolidated into one loan with a monthly repayment plan. All your student loans have been written off, and you will be able to get a new loan that you can pay monthly.

Student Loan Consolidation

Here are some benefits of consolidating student loans

1. Monthly payments lower

Consolidating student loans into one loan means that you will only have to pay one monthly loan instead of multiple student loans. Your monthly payment will be lower because you consolidate all your student loans into one loan.

2. Instead of paying several student loans monthly, you can only pay one loan per month.

It’s much easier to manage one student loan than multiple student loans with different payment dates. Sometimes, it is possible to forget to pay one of your student loans when you have multiple student loans.

3. Fixed, low interest rate

Consolidating student loans will allow you to enjoy low fixed interest rates. Student loan consolidation rates can not exceed 8.25%, as per law. Also, the national interest rates have fallen to a low 40-year high so this is a great time to obtain one.

4. There are no processing fees or credit card checks

A student loan consolidation application does not require a credit card check. They can adjust the terms and payment plans to suit your financial situation.

5. Electronically make your monthly student loan payments

Although it is not required to pay electronically, many lenders will reduce your student loan rates by 0.25% if you do so. Direct debits from your bank account can be used to prevent you forgetting to pay.

It can sometimes be confusing to determine who is eligible for student loan consolidation. According to the government, students in their grace period and still studying at school may be eligible for government student loan consolidation.

Consolidating student loans with the government is much more affordable than in the private sector. I recommend that you get a consolidation student loan from the government. There are many benefits to consolidating student loans. It is easy to save money over the long-term.

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