Consolidate All Your Student Debts
A lot of students find themselves facing huge debts right after they finish school. This can be frustrating as they still have other matters to attend to (like finding a good job) as they enter the stage of being a complete independent adult. But with the matter of debts, they feel enclosed and bonded.
An individual might have taken more than one loan to cover for his or her room and board, books and supplies, transportation, food and other living expenses most especially if parents could not provide help every now and then.
Once you graduate from school, you need to begin planning on how to repay these loans. You might even wonder when you will be able to pay off all these loans from different lenders as you struggle to make the monthly payments.
To help yourself ease the burden, you can always resort to student loan consolidation. This typically bundles all your student loans into one single loan, with a fixed lower interest rate and held by a single lender. The lender, simply called the student loan consolidator, is the one who speaks with your creditors, negotiates with them for better interest and pays off all your loans with them.
Since some of these loans are funded by the federal government, then you can easily take advantage of student loan consolidation. You are not required to have some credit check as long as you have a proof that you are indeed a graduate.
Student loan consolidation not only gives you a fixed and lower interest rate but also the chance to have an all new term for a payment schedule. This gives you an opportunity to adjust the amount you plan to pay in each month as well. However you need to keep in mind that even if it may seem that you save a lot by paying less in each month, you actually lose more money to the interests. The one good thing about student loan consolidation is you can do something about this concern. Because there is no penalty for paying off the debts early, you can make larger than required payments every month once your income increases. Thereby, you can finish early and can still save some dollars.
You can also potentially defer repayments for up to three years without being penalized. This can all be accomplished for free provided that you have a government-approved agent pre-qualify you so you can snatch up this deal.