College Student Loan Consolidation Saves You Money
College student loan consolidation makes the process of repaying your student loans much easier. When you consolidate student loans you are in inherently
taking out one new and larger loan to pay off your other loans. And this can
save you a ton of money by lowering your monthly payments and locking in a
low interest rate. Additionally you'll save time by paying just one bill versus
many each month. Not sure where to start? Student Finance Domain makes school
loan consolidation easy.
Don't know how to pay for college? A private student loan can get you the money you need.
Consolidate your federal loans to lower your monthly payments
Credit based private consolidation loans offer many options
So let's talk savings. The financial benefits of college student loan consolidation are huge. That's because a consolidation loan allows you to bundle your student loans together to obtain a new loan for the entire balance. And if you've managed to build your credit score since you originated your loans, or if you can secure a cosigner with a stellar credit rating, you may be able to obtain a fixed interest rate that's lower than what you had before. Since school loan consolidation programs are flexible, you can opt for the right solution for your situation. Whether that means consolidating just the loans with the highest interest rates or all of your loans. The choice is yours.
In addition when you consolidate student loans you are able to extend your payoff period by years. This lowers your monthly payments at a time when you probably need extra money most and puts more cash into your pocket. This can help to protect your financial well being by preventing you from making the big mistake that many college students and recent graduates make - namely racking up credit card debt.
Student loan debt is almost always better than credit card debt since some Student loan interest is tax deductible. So even though you have to pay for the interest upfront on your school loans, you'll get some of that money back when you file your taxes. That's not possible with credit cards. Additionally the interest rates that you'll receive on a school loan will likely be lower that what you'd get on a credit card. And even a percentage point or two can save you hundreds maybe thousands of dollars, depending on your balance.
There are multiple types of college student loan consolidation programs available. There are undergraduate consolidation loans and graduate consolidation loans. Federal consolidation loans and private consolidation loans. Each has its own characteristics, but if they are an option in your situation, they are worth exploring.
If you have federal loans like the unsubsidized Stafford Loan or the subsidized Stafford Loan you can consolidate your loans through a private lender. Your parents can also consolidate their federal PLUS Loans together. This will help to make your monthly payments more manageable and will make your life easier.
Your good credit rating, or that of a cosigner can mean big savings when you consolidate your private student loans. Because securing a better interest rate today will save you money during the years to come. Additionally many private consolidation loans allow you to defer your payments or make graduated payments. This means that you'll be able to paying less now when you can't afford much, and more in the years to come after you've established yourself professionally.
It's not uncommon for undergraduates to have four or more loans to pay for after graduation. It makes good financial sense to consolidate these loans together, especially if the loans have various interest rates. And school loan consolidation can work for you whether you have federal student loans or private or alternative loans.
Graduate students have special financial circumstances. Not only do they have new graduate student loans to worry about, they may still have their undergraduate loans waiting for payment. It makes good sense for graduate students to consolidate student loans into one more manageable payment.