Student Loan Consolidation Program

What is The Student Loan Consolidation Program?

This program affords students who have more than $10,000 in outstanding Federal student loans (including PLUS loans) to reduce monthly loan payments by locking in a lower fixed interest rate. Check out our detailed information regarding the Student Loan Consolidation Program…

What Are The Benefits of The Student Loan Consolidation Program?

There are three primary benefits of consolidating your student loans:

(a)   You get a fixed interest rate

(b)   You get a low interest rate

(c)   You end up with one monthly payment

(d)   You only have to deal with one lender

(e)   You save money of fees over the life of the loan

(f)    There are no prepayment penalties

(g)   You can invest the money you save

(h)   Student loan consolidation offers a tax deductible interest

Those benefits alone make this program a great deal for qualifying students. One of the greatest benefits of consolidating your student loans is that you can invest the money you save. Think about it, you’re already used to seeing that money go bye bye; instead of spending it, many student loan borrowers have gotten wise and are investing their savings. Over time those funds can accumulate into a nice sum of money; especially if you invest it wisely.

Factors to Consider Concerning The Student Loan Consolidation Program

In order to decide whether to consolidate your student loan or not, you should become familiar with the factors that affect this decision. The most important ones are in regard of the interest rates, the duration, the type of Student Loan, the monthly payments and so on.

·         What are your current interest rates?

·         What monthly payments I can afford?

·         Are my current student loans variable or fixed?

·         If my current variable loan payment(s) increase, can I afford them?

·         What is the duration of the Student Consolidation Loan?

·         What is a Private Student Consolidation Loan?

·         Can a Private Student Consolidation Loan be paid off early?

Are all Student Loan Consolidation Programs the Same?

As the old adage goes, “Buyer beware!” Not all lenders who participate in the Student Loan Consolidation Program are alike. First of all you need to know, some conditions are the same with all lenders, such as:

(a)   Eligibility

(b)   Interest rates

(c)   Repayment schedule

The areas where lenders differ are:

(a)   Service

(b)   Credibility

(c)   Incentives

Some lenders have a less that stellar record for servicing their student loan borrowers; this includes but is not limited to: poor customer service, billing issues, etc. In addition, due to the competitive nature of the student loan business, some lenders offer much better incentives than others. That’s why you’ll need to shop around. And finally, some lenders are simply on shaky ground’ recently a number of lenders closed their doors due to a tight money market. You don’t want to waste your time with a student loan lender who is not sure if they are going to be around before your loan is approved. 

All in all, consolidating with the Student Loan Consolidation Program gives you the opportunity to reduce your monthly student loan payment. For more information on consolidating your student loans, search StudentLoanwhiz.com. Your most comprehensive source for student loans, financial aid, scholarships and grants.