subject: 5 Killer Reasons To Student Loans Consolidation And To Extra Cash [print this page] This process of the student loans consolidation means, that a graduate renegotiate all his or her student loans to get both the managerial and financial benefits. The benefits come for sure, because you have now better positions to negotiate and to shop around.
1. Student Loans Consolidation During Grace Period Saves 0,6 % In The Interest Rates.
The grace period means, that you are not studying any more even half time. You do not need to start the loan payments during this time, which is 6 months period after you have graduated. However, you have to start to pay back the loans plus interest rates after this 6 months period. It is important to make the student loans consolidation during this time, because you will get a 0,6 % reduction in the interest rates. This is big money if your loans running time is 30 years, for example.
2. The Loan Management Becomes Simplier.
Managing several debts with their own different payment times and terms is tedious. By consolidating student debts into one loan you make the financial planning easier. This is very important in the phase of the life, when people have many interesting and money consuming projects going on.
3. After You Have Graduated, You Have Better Negotiating Positions.
The students pay the maximum for their student debts, because they do not have income nor assets. What they usually have is the debts. But when they will graduate and get the first jobs, their negotiating positions change over night. This is the right time for the student debts consolidation, because that is the natural time for the longer term financial planning.
4. Try Government Loan First.
The truth is, that the Government offers student debts with better terms than the private lenders. You could start from the Direct Loan Consolidation or FFELP. The most popular consolidation programs are Stafford Loans, which has both the subsidized and unsubsidized versions. Many students have taken both varieties of Staffords.
5. How Much You Can Save?
Of course I cannot give a taylor-made answer to you, because it would depend on your situation. But I give you one simple comparison, which gives you a little light about this opportunity:
1. The loan amount is $ 10.000 with 15 years payment time. If you change it to 25 years, you will save $ 19.36 a month and $ 232.32 a year.
2. The loan amount is $ 100.000 with 15 years payment time. If you change it to 25 years, you will save 202.58 a month and $ 2430.96 per year.
