5 Tips To Consolidate Student Loans And Get More Disposable Cash

What the lender will consolidate student loans

, they will first pay away the present loans and then they will form a one loan. But very often the borrower wants the longer repayment time and the lower interest rate.

1. With The Federal Student Loans There Is No Credit Check.

When you think to consolidate student loans, as long as they are federal ones, and you think, what influences your credit score has, the answer is, nothing. You will qualify in all cases. This is very important for all graduates, but especially for those, who are not employed.

2. Is Your Loan A Private One Or A Federal One?

The federal student loans are backed by the Federal Government and usually called the Perkins Loan, Stafford Loan, PLUS (Parent Loan for Undergraduate Students) or loans from the Department of Education. Actually there are more loan types, so you can check your loan type before the application.

The private student loans a student or his parents have taken from the private lenders and they are not backed by the federal government. It is important to know, that you cannot consolidate the federal and the private loans into one combined loan, but you have to consolidate both separately.

3. If You Cannot Follow The Repayment Schedule.

In this case, the first thing is to be active and to suggest to the lender the student loan consolidation to lower the monthly payments. Of course it is not a good advertising not to follow the payment plan. However, to the lender it is always easier to refinance the loans compared with the other options.

4. The Qualification Requirements.

You must have a federal loan of minimum $ 10.000, you have to be at the grace period or repayment period, you cannot be in a default status with any of your loans, you have to be a permanent U.S. resident and you have not consolidated the same loans before or have gone back to school and accrued more loans to consolidate with the original consolidation.

5. The Monthly Payments Will Decrease, But The Interest Costs Increase.

That is what will happen, when you get the longer payment time. This is natural, because the longer you will pay, the more interest you will pay. This is important to notice, when you will plan your financial future.

But when you want to consolidate your student loans your target is to get more disposable money. This is natural and will build the financial priorities for your expenses. The increased monthly cash is significant, which makes the student loan consolidation an important project.

by: Juhani Tontti

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