If you are a recent graduate who has taken a great deal of student loans, then student loan debt consolidation will help you out in bringing your student loans under control. With so much loan balance left, you might be crumbling under the pressure to meet all the expenses as well as pay-off the monthly amount for loans. The student debt consolidation loans are meant to consolidate all your outstanding loans into one loan which is available at better interest rates, lower monthly installments and larger tenure to repay.
Why Undergo Student Loan Debt Consolidation?
The most important benefit you will get from students loan consolidation is that you will get the new loan at a lower interest rate. Thus, you save on the interest you are paying off. As a rule the interest rates of student loan debt consolidation programs is less than the average of the multiple loans you are currently paying off.
One of the significant benefits is that you will be relieved of recurring late fees and other charges when you default one of your loans. If you have stacked up a number of student loans, it is difficult and very confusing to keep track of the various payment amounts and schedules, thus resulting in late payment or defaults from your side. By opting for the student loan debt consolidation, you will get rid of the burden of paying late fees and other incidental charges.
Another benefit is the type of repayment plans available and the loan tenure. The student debt consolidation loans are offered at longer loan tenures starting from the standard 10 years extending up to 30 years. In addition, various payment plans are available.
The standard plan
The graduated plan where you increase your monthly payments gradually
The variable plan where the monthly payment is adjusted as per your earnings at that time,
The flexible plan where the payment is taken care of if you are unable to repay or are going through some financial difficulties.
Thus, the repayment plan can be chosen based on your requirements. There are no pre-payment penalties on these loans under student loan debt consolidation.
A number of different financial institutions offer the student loans consolidation programs nowadays. Apart from companies specializing in student loan debt consolidation, the traditional lenders like banks are also offering such services to students.
Take your time to shop around for lowest interest rates, terms and conditions suitable for your needs and a company which is genuinely interested in helping you out before taking a plunge into the student loan debt consolidation programs. The student loans consolidation is a great way to manage your debts early in your career to gain control over your financial well-being.