Tips on Private Student Loan Consolidation

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Worried about getting tied down by your creditors’ high college loan repayment demands?If you have just graduated and you are thinking about paying off your college loans, perhaps opting for student loan consolidation is your best decision.How do you consolidate your private college loans?1. Make a list of all your outstanding college loans and include the pay off amounts, interest rate, loan period and the lenders’ address.2. Review your current loans’ repayment terms.3. Make sure there are no errors in your credit report. Student loan consolidation interest rate is based on your credit score.4. Pay attention to pre-payment penalties and determine if the interest rates will be fixed or variable.5. If you are applying with a co-signer, know when you can remove this co-signer from the loan. Also take the time to check for associated costs and incentives if any offered by different lenders.6. Make some considerations like: the pros and cons of debt consolidations, getting a home equity loan, applying for a personal loan from your bank, etc.7. See if you can consolidate all your existing loans through the same lender.What are the benefits of student loan consolidation?• You’ll have a single monthly payment that can be managed easily
• You can lock in on a fixed lower interest rate
• Terms are re-set when you consolidate your loans and the amount of time for paying off your loan is extended
• Consolidating your debts is beneficial if you have improvements in your credit score because you will have a lower interest rate