Student Debt Consolidation - TenantsTips
Student Debt Consolidation is where you bring all your loans and other debts together into a single loan and is often used as a way of making your total debt easier and cheaper to manage.
What is Student Loan Consolidation?
Loan consolidation for students or Student Debt Consolidation as it is often referred to is where you bring all your student loans and other debts together into a single loan. It’s a way of making your total debt easier and cheaper to manage.
By doing this it’s often possible to save a lot of money, not just on your monthly repayments making your finances easier to manage but also on the overall debt that you will be indebted for.
This is made possible because you should be able to reduce the interest rate (APR) on the new loan and the total - including interest to be repaid, will be lower than the total of the original debts you are consolidating in this way.
What is the Cost of Consolidating Student Loans
As we said earlier if you consolidate your debts in this way, you might be able to lower your monthly payments by as much as 50-60 percent.
The “cost” of doing this maybe that end up actually increasing the total amount that you re-pay if you have to take out the loan over a long term.
We recommend you carefully evaluate the interest rate and the loan terms of the consolidation loan companies out there. Take the time and compare lenders before you even apply.
Why should I get student loan consolidation?
After university, all of a sudden there are a lot more things going on in your life. As well as hopefully getting employment you might start looking to rent a home or buy a place of your own.
Whatever you want to do you won’t want to let your student debt hold you back and frustrate your plans so a student loan consolidation plan can ease this transition and allow you to get on with your life and not to be worrying about huge monthly repayments on debts acquired whilst a student.
If you’re still a student then student loan consolidation can be very beneficial for you. We all know that going to college or university can be very costly these days, what with the prices of things going up almost every day. Many students don’t have the savings or finances to pay their own way through college and so a student loan is the only way you can achieve your educational goals.
Student Debt Consolidation on the Increase
As we just mentioned Student loan consolidation has become a more frequent option for many students given the economic landscape we find ourselves in these days.
It’s a fact that the average student leaves university with debts running into the tens of thousands through the loan they took out when they started. They quickly found out that even with this, it was not enough to live on and additional loans were often taken out to “top-up” their lifestyle and cover the cost of debts run up on their credit cards.
Now, there are many student loan consolidation lenders offering loans as the market for them has grown and grown over the years.
Loan consolidation program
A program for your loan, or the loan plan are the terms and conditions of the loan you get and what is agreed between you and the lender. This will include details of the Monthly Payments which, depending on your situation and the lender you choose, you may be able to lower your monthly payments considerably. If you have a lot of other student debts you may be able to extend you payment terms with many not having to pay anything back until they’re earning a good wage. By consolidating in this way, you only have one loan payment each month. This means one payment instead of many to worry about each month and finally, with some consolidation loans you get a fixed rate for the life of your new student consolidation loan. It pays not to rush into taking out a loan and to find the best interest rates and terms you are happy with. Also, if you check around you’ll find many online loans sites have loan calculators. We recommend at least use these to work out how much your student consolidation loan will cost you.
Finally after getting your new consolidation loan!
It really is important, if not essential that you don’t start getting into further debt until you are sure can afford it !