One of the most common problems of college graduates nowadays is paying off their private student loans. It is a very stressful thought, especially if you have a loan with different companies, and all of them are maturing at the same time. Obviously, a fresh graduate who is just starting out with his or her job cannot pay off the loans in full, thus, a good strategy is to consolidate all your existing loans into one manageable account.
You might think that either they are multiple accounts or just one big account, the end result is still the same: you still have to pay your debts. So ask yourself: is private loan consolidation right for you? If you are unsure of your answer, try listing down the benefits of consolidating your private student loans, and then weigh them down. Surely this can help you decide whether or not this is the right choice for you.
Benefits of Private Student Loan Consolidation
- Better budget management- having one manageable account is better rather than juggling multiple accounts with your two hands. This can also let you schedule your payments easier, rather than having multiple payment periods in one month.
- Ease of mind- having one monthly loan payment to think of is healthier for your state of mind, rather than thinking of multiple payment dues in one month.
- Lower rates- having consolidated your debts, the consolidated rate will be more minimal than what you were paying before, since your loans will be under one interest rate only.
- Fixed interest rates- most often than not, your loan company will give you a fixed interest rate for your consolidated debt, so it will be easier for you to budget your money and prepare for your monthly payment rates.
- Flexible payment terms- you can choose whether to pay for it within 10, 15 or even 25 years. It all depends on which is most convenient for you. However, try to compute if paying for it long term will save you money, rather than paying for it at a shorter amount of time.
When looking for a good private student loan consolidation company, look for one that provides you with all the information you need. Ask your loan specialist if their rates are fixed or variable, if there are any other fees (beware of hidden fees), and their available payment terms. It is possible to easily pay off student loans. All it takes is good money management and strategy.