subject: Best Experts' Tips and Advice on Student Loans [print this page] Best Experts' Tips and Advice on Student Loans
Welcome Aboard!
Are you presently facing challenges trying to clear your long accumulated student loans?
Or perhaps you are weighed down with multiple loans troubling your mind?
Relax and be at ease as help is around the corner, courtesy of experts' tips and advice.
An average student loan debt is $23,485 which weighs heavily on their shoulders and savings. At the critical juncture of student loan repayment, financially-drained grads with tight incomes feel the financial pinch as they juggle job-hunting, business-launching, home-purchasing, and family-building.
University graduates who tapped into financial aid stand much to gain from college loan consolidation, which combines existing loans into a new single loan. Student loan consolidation is easy, since 1) there are no credit checks or application fees involved, and 2) the applicant is not required to have collateral, be employed, or have a co-signer.
Benefits of Consolidated Student loans:
1. Low monthly payments and a customized payment plan
Borrowers will be able to select a lower monthly amount related to income level. They can also ascertain the number of years they would need to pay off the student loan at that amount. An extended repayment period enables them to reduce their monthly payments by as much as 60% in some cases. This translates into more disposable cash that can be allocated to credit card bills, mortgage or rent payments, as well as auto, food and utility expenses.
2. Simplified finances
It facilitates payment to a single lender, rather than to multiple lenders on different due dates.
3. Lower interest rate
Graduates benefit from an interest rate reduction.
4. Longer repayment period
Consolidation enables borrowers to extend the period from 10 years to 30 years. By stretching out the repayment period, monthly payments are significantly reduced and become extremely feasible, particularly for degreed individuals on entry-level salaries.
5. A higher credit score
Loan consolidation can boost a borrower's credit rating, due to the fact that previous loans have been paid off, and this gives rise to an improved credit rating and an overall enhancement of a borrower's credit profile. With an improved credit score, graduates can freely enter into future credit transactions with minimal hassles.
6. A fixed interest rate
Borrowers who consolidate student loans can lock in a fixed rate of interest for the loan's term. This is financially advantageous in that they are protected from any future increases in the interest rate.
7. No pre-payment penalty
Most lenders exempt borrowers who consolidate student loans from pre-payment penalties for early or larger payments. Graduates are granted the prerogative of deciding the time period during which they will repay their debt in full.
8. Savings on automatic payments
Those who consolidate their student loans can save time and money by opting for automatic withdrawal of funds from their checking account. Typically, their interest rate is reduced by .25% when they authorize the automatic deduction of payments.
9. Tax benefits
The interest that consolidation applicants pay on their student loans is also tax-deductible.
