Whether you attended a public or a private college or university, you probably owe tens of thousands of dollars or more in student loan debt. If you are like millions of other graduates, you chose to fund your education with private student loans.
Private student loans differ from federal loans in that the private loans are issued by private banks and other lending institutions. Private loans may be offered at varying prices or fixed and have a number of possible terms (terms and conditions), as 5, 10 or more years.
If you have multiple private loans, loan consolidation, you may be interested to consolidate loans with a private individual.
Consolidation Loan Benefits
The main advantage of consolidation is that it gives the possibility in many cases reduce monthly paymentsObligations. The ability to save money per month for each student loan has a huge advantage for graduates holding a lot of debt. The majority of graduates - particularly in the early 20's and 30 - have pledged to pay their monthly expenses, while building a small nest egg. High loan payments but a serious damper on this goal.
Another benefit of consolidation is the opportunity to simplify your financial life. After making several payments to different bankseach month - which are due on different dates and in different amounts - is no piece of cake to manage.
Comparing Private And Federal Consolidation Options
Note that if your current student loans are federal loans, you should opt for federal consolidation. Otherwise, private consolidation is the way to go.
3 Tips For Private Education Loan Consolidation
If you are Since the consolidation, here are three tips to consider:
1. Shop The Best Bank Rate: Just shaving a point or two of your interest rate will save you money in the future loan payments. It's worth spending more to add a little 'more time shopping, the prices of several banks before choosing one.
2. Check out each company: be sure to do research on any creditor that are viable and represent a company that would like to dobusiness with. For example, ask these questions: Do they have the ability to service your loans? Do they allow for easy online application? Are their repayment plans simple and easy to understand? Do they offer any benefits to borrowers who pay on time? Keep meticulous notes about each lender you evaluate.
3. Get The Payment Terms You Want: Before contacting lenders, make sure you know what your idea payment terms are. Remember: a longer term of, say 20 or 30 years means lower monthly payments now but much more paid over the life of the loan in interest costs. Tip: choose the shortest term possible while still leaving you with a monthly payment you can afford now.
Follow these 3 tips to a more successful loan consolidation.