subject: 3 Money Saving Tips To Select Student Loans Consolidation Lenders [print this page] The idea of the student loans consolidation is to lower the monthly payments. How is this possible? It is possible, because the lender can lengthen the running time of the loan. This means, on the bad side, that a borrower will pay more interests, so it is important to think, whether it is worth that.
The student loans consolidation combines all the private loans into one loan and all the federal loans into one. It is not wise to comabine the federal and private loans into one, because the end result is usually worse.
1 Step 1: Pick The Best 3 Offers From The Internet.
The internet is a good tool to start to investigate the student loan consolidation lenders. I recommend, that you concentrate only to the biggest banks, because the student loan consolidation is a long term process.
Start to comparing the rates, loan periods and payment plans of the different lenders. A borrower can easily compare the key figures and to pick three or four best ones with which he or she must talk closer.
2. Ask Offers.
To shop in a smart way is the way to get a money saving offer. A borrower can contact the customer service or sales department of each lender in the list and to give his personal information to get a detailed offer. Note, that the websites often give very generic information, but when a bank will prepare an offer based on your specific information the numbers can be much better.
After a borrower has received the first offer, it is important to make the lenders to compete against each other. For example, when you have noticed, that there are two best ones, let them both know, what details the offers include. And ask directly, whether you want to beat the competitor. Do you want to be a winner?
3. Accept The Best Offer.
The system to make the big banks to compete against each other bring usually the best deals. After you have also asked, whether some detail can still be improved and you will notice, that there is no more space for better numbers, you have to accept the deal bu phone, emalil or by visiting the branch.
But why all the job? From the graduate point of view, to handle the process professionally can mean big savings, because the running time of the consolidated student loan is so long. The compounded effects, even small annually, will build the savings. And finally, never miss the student loan payments, because it can have a dramatic impact on your credit score!
