Thursday, December 14

7 Secrets of Student Loan Consolidation You Might Never Know

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 The average graduate leaves college with more than $20,000 in debt. These easily snow ball into tens of thousands with the purchase of new cars, credit card balances and a mortgage loan. While the prospects of a job seems grim, students are overextended with debt and can benefit from debt consolidation to properly handle this growing debt. They are many student loan consolidation programs that would make a good fit for a new grad, whose $30,000 annual income can give no guarantee to the growing debt crisis. College debt makes up a sizable amount of the students life, it is important to aggressively approach these bills and become debt free early to enjoy the fruits of their labor.

Here are some secrets about student loan consolidation program you might not be aware of

  1. One Payment: While many student s take out a series of student loans in college, the student loan consolidation programs bundles all your student loans into one affordable monthly payment that is both manageable and affordable.

  2. 20 Years Average: Most student loan consolidation lenders offer an extended length of repayment . This ranges from 10-30 years, paying a shorter term can increase the amount you have to pay each month while, paying a smaller increases the amount you repay but makes your monthly payment small and manageable.

  1. No Upfront fees: They are no upfront fees for federal student loan consolidation, but most lenders require you to be current with your payment to develop a debt consolidation plan.

  2. Grace Periods: While many opt to begin the repayment immediately, this can have an impact on your use of the grace period given. Grace period once ended is no longer available only in the case of a deferment or financial hardship.

  3. No Co-signer: While you might need a cosigner to get your initial student loan, while you are consolidation your college loans, you do not need a cosigner. We are even able to drop the cosigner all together after a few years of consistent payment.

  4. Deferment: If you loose your jobs or become disable temporary, you can become eligible for loan deferment. This benefit is available to many student and should be used instead of allowing the loan to become delinquent and makes it much more difficult. You can also find these little bills becoming out of control when a student loan debt consolidation lender ask you to make the loan current before loan consolidation.

Approaching a debt consolidation lender might appear difficult but with a sizable student loan, credit card balances and mortgage and auto loans it can become a nightmare. As a country we often find ourselves teetering on the edges of debt and debt consolidation programs provide relief in these situations. Choosing to have your college debt consolidated is a wise move that should be made early to avoid some of the challenges on down the road. Becoming debt free is the ultimate goal and this can be achieve in small step, a debt consolidation loan is certainly one.

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