Top Ten Reasons For Consolidating Your Student Loans
>From saving money to improving your credit score, there are many
benefits to consolidating student loans. Here are the top ten
reasons why you should streamline these debts.
1. Peace of mind Have you had sleepless nights? Do you find
yourself awake at 3 am tossing and turning wondering how you are
going to meet all your student loan payments this month?
Worrying about whether or not you can afford to pay your bills?
By consolidating your student loans, you can save up to 60% on
2. Lock in a low interest rate Don't procrastinate, by
organising your Federal
student loan consolidation before June 30th
of this year, you can take advantage of the current low interest
rate of 4.7 percent. As well, you will secure this interest rate
for the life of the loan, so you won't have to worry about a
3. Streamline your payments Have you racked up multiple loans
with varying amounts over the course of your time in school?
Many of us have. It can be confusing to keep track of all of the
bills. When you consolidate, you will simplify your life by only
having to pay one amount to one lender.
4. Auto-pay To further simplify your bill paying, sign up for
auto-pay at the time you do the loan consolidation, and you can
save yourself the cost of a stamp and the time it takes to write
a check. The lender will simply deduct the amount from your bank
account on a regular schedule. Most lenders provide a discount
for borrowers who sign up for auto-pay.
5. Improve your credit score When you do your student loan
consolidation, the new lender will pay off your existing student
loans. This process of loan payment, along with reducing the
number of outstanding loans will improve your credit score. And,
don't worry if you don't currently have stellar credit. Because
your loans are guaranteed by the U.S. government, your credit
score won't be checked as part of the application process. 6.
Help your parents Did your parents borrow money to help pay for
your education? They too can consolidate their PLUS loans and
lock in the current interest rate.
7. "On Time" payment discount Like auto-pay, lenders reward
borrowers with an interest rate discount for paying on time for
a certain period (usually 36 months). Make sure to ask your
lender about discounts when you apply to consolidate your
8. Forbear or defer Once you have completed your student loan
consolidation, you will retain these Federal borrowing
9. Financial Savvy Maybe you weren't a straight "A" student, but
everyone will think that you're a financial genius when you tell
them what you are saving on your
student loan consolidation.
10. Get out of default status You can stop the harassing phone
calls or wage garnishments by consolidating loans that are in
default and get back on track with your financial status.