After graduating from high school, education does not come cheap. If you want to enjoy the student years, focus on study and fulfil your dreams; or you just need money to continue your studies, you don’t need to cut off the best experience that can define your youth. It is important to know you can receive help to invest in your education while enjoying your youth. By accessing a study loan, you can make your entire academic and education projects, at any level, come true.
There are several student loan types, such as Undergraduate, graduate, master, MBA, parent refinancing or even specific types of loans, for specific domains of study: law, dental, medical or healthcare; and even international study abroad loans. Each student loan category has fixed or variable loan amounts, discounts and rate types, variable terms for student loans or their consolidation.
One out of ten Americans relies on their study loans, involving between 10 to 30 years to repay, according to the promotion of 2019. After graduation, starting repaying monthly, multiple student loans can be difficult, each of them having different principal amounts, terms and conditions and sometimes, variable fluctuating interest rates.
Study loan repayment can be difficult if there are various financial entities involved. A way to simplify the payments and life is to find out how you can consolidate the study loans in one simple and effective payment per month.
If the borrowed money were received from federal loans, it is easy to find an easier way to repay the debt, by applying without hesitation for a Direct Consolidation Loan.
If some or all the study loans were accessed through private entities, it is indicated to use a refinancing program, to achieve a similar, effective situation.
If it is difficult to reach your payment due date every month, if it is a struggle keeping up with different loan services or different repayment rates, consolidation or refinancing are a valid choice. These financial remedies for the student loan repayment, are not breaking the budget every month.
When can I consolidate my study loans?
The following circumstances can benefit from student loan consolidation:
- Trouble making the payments on time
- Hardly managing multiple loans
- No stable income
- Working in a profession eligible for loan forgiveness
- A loan in default
It is very easy to qualify for federal student loan consolidation if the provided criteria are reached, as following:
- Graduated or left school
- The minimum amount to consolidate is at least one Direct Loan or Federal Family Education Loan
- At least one education loans must be consolidated, along with different eligible loans
- Repayment or grace period for the loans that have the consolidation intent
- Past three consecutive monthly payments on time and in full proportion
Can I consolidate my study loans and have benefits?
One single monthly payment versus multiple payments and the living is easy:
- Easy management of the monthly payments
- Use of a safe and secure federal repayment plan
- The possibility of qualifying for federal forgiveness programs
Consolidating student loans can easily change the financial scenario and perspectives over the years.
It is strongly recommended by specialists, the comparison of both the monthly payment and the total payments, versus the life expectancy of the student loan, when considering a student loan repayment by consolidating or refinancing it.
It is very important to have in mind that, the monthly payment can sometimes be significantly reduced, but there is a great possibility that, simultaneously, there will be added value to the interests involved in the loan. It is very important to compare more than just one monthly payment and interest rate, to determine whether consolidation or refinancing might be the optimal solution for loans involved.
There is no need to pay a fee to consolidate student loans.
Step by step guide to consolidating student loans:
- Consolidation Loan application form
- Submit the required personal data
- Choose and pick the loans in need of a consolidation
- Choose the student loan servicer from a wide variety of offers
- Choose a repayment plan suitable to the monthly income
- Submit the completed application
- Continue making payments as usual, after the application submission
- The chosen servicer will inform what are the next steps to follow
Repaying the student loans is a hard and variable process that can take years, sometimes decades and it is needed a strategic approach for the payback. Student loan repayment through loan consolidation can make it easier to manage the monthly payments.