subject: The Process On How To Consolidate College Loan [print this page] If you have acquired student loans in the past, then it is advisable to consolidate college loan. There are actually advantages and disadvantages when you do this. After graduation then you have to take steps and pay your obligations. When you consolidate college loans, you combine all the loans that you acquire into one. The process is every simple and easy to understand. When you have borrowed several loans from multiple lenders, it is hard to keep up with all the repayments. When you consolidate college loan, all of them are combined under one loan at lower interest rates and longer repayment scheme. This may sound enticing but you need to consider the benefits and drawback in order to make a good decision on this matter.
There are actually positive and negative aspects of doing this. The good thing is as a receiver of a student loan you have the grace period. Meaning one has a six month grace period to pay the loan after you leave school. This is the duration before you start making repayments. The negative thing about consolidating college loan is that you forfeit the remaining grace period. You have to make payments within two months after acquiring a consolidate college loan. A wise tip is to consolidate when you are nearing the end of grace period.
You can ask for an extension of the repayment period. This could last for up to 30 years depending on your college loan debt. Your monthly payment would definitely decrease. If you can't make monthly payments then this thing has an advantage. However the negative thing is that you will be stretching your debt for a long time which means that you will have to pay more interest. You will definitely pay more in the long time. It is definitely the best advice if you settle your accounts at shorted period of time which you can afford. You can even pay before the time is due.
The benefit when you consolidate college loan is that it can simplify your life. You will just have to pay to one lender. It is less hassle on your part. The downside of this is that you are deferring some benefits of your current loan provider such as cancellation and others. It is best to think about things before acquiring consolidation loans. You need to weigh the pros and cons of having one.
