| Higher education has great benefits: higher income, | | | | important to focus on interest rate reduction. |
| advantage in the job market, and sense of security. | | | | You may reduce the interest rate on your student |
| However, such benefits are often spoiled by financial | | | | loans in several ways. First, you may try to consolidate |
| obligations from college years - student loans. After | | | | your student debt through a non-profit lender. Since |
| graduation, many are surprised by the amount of | | | | they do not focus on extracting profits from their |
| money they have to commit to paying off their student | | | | activities and have lower operating costs, your rate |
| loans. This is especially an issue for graduate students | | | | reduction may be quite significant. Another effective |
| in expensive fields: engineering, law, and medicine. Such | | | | way is to try to take advantage of recent legislative |
| students find themselves in the position of making | | | | changes that allow for discounted rates available with |
| several payments disbursed to private and | | | | student debt consolidation programs. While such |
| government-funded loans. For many, even making | | | | programs often have criteria to meet, such as showing |
| minimum payments is a struggle every month they | | | | significant financial need, they may well suit your case. |
| come due. The good news is that there are a number | | | | Having your payments processed by automatic bank |
| of student debt consolidation programs available that | | | | debits is another effective way to qualify for rate |
| may help convert multiple loan payments into one, | | | | discounts, as most lenders offer permanent rate |
| being easier to afford. Sometimes student loan | | | | reduction for borrowers who opt for ACH payments. |
| consolidation is the only step to avoid slipping on | | | | Student Loan Consolidation Myths Busted |
| payments and getting behind on college debts. | | | | There are a number of misconceptions about student |
| Important Things to Consider | | | | loan consolidation. Many people are under impression |
| There are several federal laws in place that regulate | | | | that the rates may fluctuate throughout the life of a |
| student loan consolidation. It is important to be aware | | | | loan. This is not true at all, as lenders are required by |
| of the guidelines they impose to protect your rights. If | | | | federal laws to give fixed rates on consolidation loans. |
| you are looking to get lower monthly payments on | | | | Another common myth is that student loan |
| your student loans, you may achieve it by taking | | | | consolidation ruins your credit. Financial institutions do |
| advantage of extending your loan terms and/or | | | | not run credit reports for student debt consolidation. In |
| reducing your interest rates. | | | | addition, unlike some other loans, student lenders are |
| Federal laws allow up to 30 years for student loan | | | | not allowed to charge pre-payment penalties, allowing |
| consolidation programs. By extending your loan | | | | you to pay off your loan sooner and benefit from |
| duration, you may be able to reduce the amount you | | | | lesser interest charges. |
| pay each month significantly. It is important to consider | | | | Beware of lenders that tell you that only they are able |
| that the longer your loan terms are the more you | | | | to deliver special benefits to you, as it is not true. |
| would end up paying in interest charges over the life of | | | | Student loan consolidation is an industry strictly |
| the loan. If are looking to lower your monthly payments | | | | regulated and monitored by U.S. Government, ensuring |
| then the time frame of your loan is mostly likely going | | | | equal and fair treatment to all borrowers who face |
| to get extended. Therefore, while prolonging your | | | | financial problems. |
| repayment period may be of great help, it is more | | | | |