01.14.10 | Student loan consolidation can help you manage your debt and your stress
Student loan consolidation can remove a lot of stress from your life. If you are feeling burdened by multiple student loan payments to multiple lenders every month it might be time for a change. By consolidating you student loans you can save hundreds of dollars a month and only have to worry about making payments to one lender. That is one lender, one automatic deduction or check, and one date to remember every month. After consolidating you will also be left with one interest rate which will be the weighted average of all of you previous interest rates.
So say goodbye to student loan payment stress and consolidate your federal student loans. You can even apply online for student loan consolidation quickly and efficiently.
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Be aware that once you consolidate a federally backed student loan, you cannot do it again. The law does not allow you to consolidate a second time or to refinance your consolidated loan at a later time, even if you find a lender willing to loan you the money at a lower interest rate. You do have options about repayment plans, and these can be adjusted. If you lose your job or find yourself in financial difficulty, you may want to change your repayment plan to one based on your actual income. This can give you lower monthly payments but of course this will result in taking longer to pay off the loan. With federal loans you also have rights with regard to deferments and forbearance. Whatever you do, don’t let your loan go into default. Just be aware that there are now millions of people in the U.S. who have defaulted on their loans and because of huge penalties and fees now find themselves owing 3-4 times what they originally borrowed. Many of these people are overwhelmed by student loan debt. It might be advisable to read some of these horror stories beforehand so you know what you’re getting into. Most of these people are shocked to find themselves in that kind of situation. Be aware also that student loan debt cannot be discharged in bankruptcy.
January 19th, 2010 | #