Wednesday, November 18, 2009

5 (FIVE) Basic Questions For Student Loan Consolidation

In the perspective of many people, student loan bills extraordinary and frustrating, especially when the job market is unstable right now. For those who are unemployed graduates, at the monthly payment amount of students in each bill is a stressful thing, because they are unable to pay the loan without any income. Their immediate action is recommended to take a loan to consolidate all of their studies into a single loan and defer payments.

If you're like other students who have little information about student loan consolidation program, here are some guidelines for you when you consult with a loan consolidator in the market. There are 5 basic questions you need to ask in order to gain a better understanding of the program. It is important for you to identify whether the program is beneficial for you or make you a bad credit score.

Question 1:

Who is eligible for consolidation?

For students or graduates who have never consolidated their study loans, they are eligible for this program. You can only consolidate loans that are under your name. As a student, you can only consolidate your loans during the grace period or after the repayment of a loan phase has begun. If you're married, you and your spouse are not allowed to combine your loans together.

Question 2:

Are there any additional costs that occur if I consolidate my study loans?

The consolidation process is absolutely free. Therefore, you are reminded to stay away from the people who consolidators charge additional fees to consolidate your loans. In general, many consolidators are also ignoring the prepayment penalty. If you pay back your loan ahead of schedule, you are not required to pay the fine.

Question 3:

What's new on the interest rate for your new consolidation loan?

When you decide to consolidate your student loans, it will only benefit if you can get interest rates lower. The ideal level for a federal consolidation loan is 6% and for the consolidation of private loans, it is best to under 8%.

Question 4:

How long the duration of a new repayment plan I?

If you have a very tight budget, you are advised to check with consolidators if you can extend the payment period for a period longer. If students are a very large debt, you have to find a plan that allows you to extend payments up to 25 years.

5 Questions:

Who is the lender?

You have the freedom to consolidate your loans with the lender. Key point here is you are advised to seek reliable consolidator in the market that can really help you to reduce your monthly payments and save money in the long run. Sign up plan truly in accordance with financial needs.

By Jeslyn Jessy

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