Student loan consolidation is now popular because the rule that federal student loan borrowers holding defaulted student loans are no longer entitled to any deferments or forbearance. Student loan borrowers who just ignore summons for loan repayments will become liable for all fees associated with collecting the federally financed loan.
Most of the guaranty agencies’ stringent collection procedures have successfully deterred student loan neglect. One of the supports for this claim is the steady decrease and current all-time low of student loan default rates.
4 Simple Ways That Can Help You To Prevent The Onset Of Student Loan Default
1. Student loan consolidation is a very effective opportunity to consolidate several monthly payments into a single loan.
2. Make sure that you understand your loan options as well as the related responsibilities prior to taking out a student loan.
3. Simply make your payments on time every month.
4. Inform your lender or service provider promptly about any of the possible adjustments that may affect the repayment of your student loan.
The best solution may be student loan consolidation to help avoid the hassle of several monthly loan payments which in many cases can be the cause of default in the first place.
What is student loan consolidation?
When a certain student initially applied for a number of student loans from different providers and organizations, each student loan agency or provider offered distinct interest rates as well as term or period of time for the loan to be paid back. The concept of a student loan consolidation is to grab all the varying student loans and put them all into one single, simple and handy loan.
Then the student will only make one payment each month for all the loans incurred, than several or individual loan payments each month; with this, the student will then save time as well as money. With a much lower interest rate plus less checks to write each month, are just a few of the advantages of executing a student loan consolidation.
Generally, individuals apply for a student loan consolidation to cut on their payments each month and to save on money for an accumulated period of time. When you do want to drastically lower your payments each month, frequently you can through the extension of your repayment term past the 10-year period standard for a federal student loan. The faster you settle your student loan, the more money you can save.
4 Student Loan Consolidation Features and Benefits
1. Lower payments every month.
2. Have simple and convenient loan payments.
3. Have fixed interest rates. With certain federal student consolidation loans, one may have a permanent fixed rate on a student loan. Check online to have an estimate and calculate the interest rate on the best student loan consolidation that will be based on the current rates.
4. Payment period can be extended. However, keep in mind this will result in paying more or additional interest for that accumulated time of your student loan consolidation if you extend the loan period. This is an option if your debt has become too much to pay each month.
Student loan consolidation can help you put attention on earning money and education rather than dealing with several monthly student loan payments.