Help with Student Loan Consolidation
Today’s economy has made many people more aware of exactly where each and every penny goes from their income. One of the biggest monthly expenses that seems to plague a number of individuals is that of student loan debt.
While the attainment of a college education is important, it does not come without a high price tag. In many instances, borrowing the necessary funds for tuition and other expenses via a student loan (or loans) can mean the difference between a college degree being a reality or just a dream. Unfortunately, when student loan repayments get in the way of other financial needs, it can become a real nightmare.
Oftentimes, government student loan funds do not provide the full amount that is needed forcing many students to borrow from private lenders. Depending on the situation and the amount of funds that are needed, by the time a borrower graduates, they may have racked up tens- or even hundred-of-thousands of dollars worth of student loan debt.
To make matters worse, when one borrows from multiple sources, the payments may be due in differing amounts at various times throughout the month. It may even get to the point where one payment after another becomes due keeping a continuous flow of funds going out the borrower’s door.
What Are the Benefits of Student Loan Consolidation?
There is a solution to the stress and frustration of making multiple high student loan payments every month. When one consolidates and refinances their student loan debt, it can host a number of both financial and emotional advantages to the borrower.
In fact, there are a many benefits to consolidating one’s student loan debt. These advantages can include:
- A lower total monthly payment amount
- Attainment of a lower fixed interest rate, in some cases for the entire life of the loan
- Longer loan term for repayment
- A combining of multiple loans and payments into one loan with just one monthly payment
- Improved credit score based upon a more positive debt-to-income ratio
In addition, borrowers who have consolidated and refinanced their student loan debt are oftentimes able to use the amount that they save in monthly student loan payments for paying off other pressing debt or to increase their savings.
This can truly kick off a win-win situation in that the borrower has increased his or her credit score, while still making regular and timely payments on their student debt and increasing their savings at the same time.
What Information Will You Need to Apply for a Student Loan Consolidation?
There are a number of lenders that can help in getting one’s student loans consolidated and refinanced to a more manageable monthly payment. In most instances, a borrower may even begin the loan refinance application process online.
There are several questions, however, that must be answered in order to proceed with a student loan consolidation and refinance. These include:
- What college or university did the borrower attend?
- What was the borrower’s date of graduation?
- Which type of degree undergraduate or graduate did the borrower receive?
- What is the borrower’s citizenship status?
- What is the estimated amount of student loan debt that the borrower intends to consolidate and refinance?
In addition, qualification for a private student loan consolidation and refinance is also based on the borrower’s income and credit status. If a borrower intends to refinance an amount that is more than twice the amount of their annual income, it is likely that they will need a cosigner on their new loan.
A cosigner, however, will not need to be permanently part of the debt obligation. In many cases, once the borrower has made 12 consecutive on-time loan repayments on their new consolidation loan, the name of the cosigner may be removed.
For Additional Information
Those who possess federal student loans and wish to consolidate and refinance their debt should visit here. Here they will find information on how to proceed with a federal student loan consolidation, as well as details on applying for such a loan online. Visitors to this website can also determine whether they are eligible to proceed with a federal student loan consolidation and refinance based on certain qualifying criteria.
If you would like to see what loans you qualify for you can start by filling out a private student loan consolidation application.