What Are The Factors To Consider Before Going For Student Loan Consolidation Rates?

Google+ Pinterest LinkedIn Tumblr +

One of the major concerns is to check out for the interest rates before you go on. The other factors I want to point out are the monthly payments, the time period and any terms or conditions. These all factors should be considered into the decision to consolidate your current student loan into a single.

Some more factors figure into the consolidation rates are: Is the loan a private or is under federal government? Rates of federal loans are superior to other. But we must know the type of loan you are considering or applying for. Its types depend on its current interest rates.

– Stafford Loan (in school): 1.88%
– Stafford Loan (repayment): 2.48%
– Federal Plus Loan: 3.28%

The calculation behind federal student loan is that it is based on the weighted average of loan interest rates.

Before going to consolidate it’s time to check for the low rates. The interest rates of federal loans are the weighted average of all your loans rounded up to the nearest 1/8%.

In order to low down your interest rates, credit history is a big factor to go for. Your credit score determines the consolidation rates. If your credit score is not so good, look for Stafford that is not base on your credit history. Stafford loans are taken on the conditions of need rather than credit score and ability to pay it back.

Your originating fee also accompany with this issue. Always look for the charge on the total fixed loan. But competition between the companies may offer you low rate. With the federal loans, a portion of fees goes back to the government to reduce the overall cost.

Before to consolidate, it’s time to check all the attached grace period, charge payment on late payment and what offer you get. To relief from your headache for monthly payments on time these issues can be very important to roll on.

If you want to reduce all your monthly payments for all your school, college loans then learning more about student loan consolidation rates is crucial through this article.


About Author

Leave A Reply