If you’re struggling with your student debts, you might as well consider a loan consolidation at present. The entire process can simplify your repayment process in a major way as it centralizes your debts and the repayment period can be extended even up to for 30 years. However, it should be considered that a longer period of repayment would mean that you’re actually paying up more than what you would in case you had opted for a shorter tenure.
Federal Nursing, Direct Subsidized, Direct Plus, Health Education Assistance, Direct Unsubsidized and Supplemental Student Loans etc are some of the types of debts that can be consolidated.
It becomes very difficult to keep a tab on each and every debt- how much you owe to each of your creditors. Consolidation, on the other hand, aids you in streamlining several of your repayments by means of combining all of them in to a single loan. You can opt for a consolidation after you have left school or else after your graduation or when you have dropped below half-time enrollment.
A fixed rate of interest is charged on a consolidation loan. The rate is fixed for the entire tenure and is based on the average weight of all the loans that you need to repay. Though there is no such cap on the rate of interest of Direct Consolidation Loan, the overall interest rate might be something close to one-eighth of 1 percent.
In this regard it must be mentioned that students often opt for fast cash loans in a bid to pay off their semester fees, rent or else food bills. You can know more about them at Cash-Loans.eu. But student debt consolidation might not as well aid you in tiding over these financial obligations of yours.
How should you Approach Consolidation?
Now, it is important to avail a few tips when it comes to consolidation or else streamlining the same. Find out more below:
Sit down and make a list of what you actually owe. It implies the total volume of debts that you have. Besides, it is important to find out the type of debts that you have. The rates of interest would vary with subsidized and unsubsidized Stafford loans. Those who have a mix of both these debts would experience varying rates of interest. So it is important to check your documents thoroughly and in a bid to do that, get in touch with your lender.
Please make sure that you are comparing the monthly payments that you’re bearing now and what you have to bear in case you opt for debt consolidation. The tenure of repayment should also be considered as a longer term would mean that you’re actually paying up more.