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Students Private Direct Loan Consolidation

Students Loan Consolidation

Students loan consolidation refers to the program of combining the students loans into a one master loan therefore significantly reducing the monthly repayment of that particular loan or a number of loans.

The result of consolidation of these loans are usually two in number; one being that the

monthly repayments are reduced considerably and the other one being that the
loan can now be repaid for a longer time with a fixed rate.

It is important to put a few factors into consideration before you decide to consolidate your loans. Firstly, you have to make sure that the consolidation of the student loans is the best option for you before you make a move.

It is important to note that the student loan consolidation will no doubt lower your monthly loan repayment and simplify your loan repayment but will equally increase the total cost of repaying the loans in questions.

Just to drive the point home, consolidation offers you lower monthly

payments, they will usually give you one month to repay the given loans. If you are
unable to reapply the loans in one month, you can be able to spread them over a
number of months at an increased interest; you will therefore be able to make more
payments. Student’s consolidation loans usually 30 years to be repaid, but this period
can be elongated further.

The implication of this just like mentioned above is that you
will make more payment for your loan, in fact in some cases you can be able to double
your total interest expense. It is highly advised that if you do not need the 30 days
payment relief, then you should compare the cost of repaying the consolidated loans
against unconsolidated loans.

Category: Easy Loan

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