Friday, 7 January 2011

A Simple Guide to Student Loan Consolidation

Even as a fresh graduate new to the real world, there are already some financial decisions that you must make. This is especially if you have college loan debt repayment obligations.

Are you among many others whose multiple college loans have piled up?

Then you might be finding it hard to keep up with your monthly payments to different creditors. And perhaps you have already thought about student loan consolidation.

Before you plunge in and consolidate your debts though, there are important things you have to know about this repayment method. What are these?

In the process of student loan consolidation, you find a consolidator (either a federal or private financial institution) who will pay for your current loans. After this, your repayments will be directed to this one lender and you will have a renewed payment term, interest rate and lower monthly payment.

Do you need to have a specific number of loans to consolidate?

If you have at least two loans, you can have these combined into one affordable monthly payment either with the same lender or a different company.

What other important things should you know about debt consolidations?

- Private loans are more difficult to consolidate than federal loans because of the requirements needed.
- Different consolidators have different policies. Others have more favorable interest rates than the rest so it is a good idea to comparison shop.
- Some consolidators don't accept defaulted loans. you will be required to pay off your back payments first.
- Your repayment terms can change completely when consolidating your loans.
- Student loan consolidation can void your eligibility for loan forgiveness.
- You can consolidate your loans only once. You can't consolidate new loans with older ones.

CLICK HERE To Learn How To Consolidate Your Student Loan The Right Way.

Learn Tips And Professional Advice On Student Loan Repayment By Going To: http://www.StudentLoanRepaymentGuide.com

Be Debt Free Sooner!

Article Source: http://EzineArticles.com/?expert=Lorrie_Barstow

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