Apr 21 2016
Explaining Student Loan Consolidation
What is Student Loan Consolidation?
Most of the students have taken loans for a variety of things that include paying for tuitions, extra expenses as well as paying for college. During this time they have different loan policies and they have various EMI’s to pay every month. To reduce the chaos, the government has enacted a rule wherein students can cluster their loans into a single loan structure which is termed as the student loan consolidation. This way the students will be able to handle their EMI’s in a better way and a more structured way.
Features of Student Loan Consolidation:
- You can consolidate all your loans into a single loan structure which will be more efficient than paying many loans at the same time. If you group your loans, you will need to pay a single interest rate along with a consolidated loan while repaying.
- One of the added feature of student loan consolidation is that you can segregate all your loans based on the factors like similar interest rates, similar balance as well as due dates.
- Most of the servicers who consolidate the student loans make sure to send emails or texts to make sure that you do not miss the due date of paying the loan amount. This keeps you in the loop.
- If you choose your servicer with a good background, you will be able to manage your EMI’s and monitor your payments without the need to keep all this information in memory.
- Using this feature of consolidating all your finances into a single loan you will also save a huge amount due to lower interest rates.
- Student loan consolidation can also be used to change your interest rates from floating to fixed or vice versa whichever you deem fit.
Let us take a look at how to go about the student loan consolidation process.
Prepare for a student loan consolidation plan:
Before you take on this process make sure that you compile all your loan documents so that they can be sorted out into a neat plan. You also need to consider the repayment plans and choose between one of them. The student consolidation plan is a very flexible plan. You can change your plan at any point of time if the plan is approved.
Apply for a student loan consolidation plan:
While you are filling in the information, make sure that you fill out all the information in a single process. This is because the information will not be saved on your PC if you log off or deviate from the task. After filling in the right information, you need to choose a servicer who will take a look at your student loan consolidation plan. You need to research well before you choose a servicer. You can calculate the interest rates the servicer will charge you if you use his services.
Tracking your Student Loan Consolidation Plan:
You can track your plan and check the status on the website.