Federal Or Private Student Loan Consolidation


Are you at your wit’s end trying to keep up with your monthly college loan repayment obligations? Having several creditors to deal with every month can be very stressful for one and add to that the different amounts due, payment dates, all the paperwork, etc.Have you thought of student loan consolidation yet?Consolidating your debts will let you deal with just one lender and payment every month. So this is a great help in your debt management. Also, you can get a lower interest rate and more affordable monthly payment. This is a great debt repayment option that helps your credit score if you have other expenses, paying for a house, a car or starting a family.What types of loans do you have?If you have federal college loans, it will not be a good idea to consolidate them with private loans. Better keep them apart for your own benefit.Federal student loan consolidation, how is it done?- Use a consolidation calculator to know your consolidation rate. Consolidators calculate the weighted average of your current loan rates and round it up to the nearest 1/8 percent.
– Check with your federal lender if you can be allowed to consolidate if still in school
– Don’t consolidate federal loans to private loans because you will lose privileges like applying for deferment, forbearance or loan forgiveness
– No fees are involved in debt consolidation
– You can lock in on a lower interest rate I you consolidate within the 6 month grace periodHow do you consolidate private loans?- You must have good credit rating. If your credit score is bad, you can look for a co-signor whose credit rating is impressive
– Determine if there are any associated fees for private student loan consolidation
– Before going to a consolidator, determine first if you can consolidate your debts with the original lender especially if you have several loans in the same financial company.