Having to pay for numerous student loans is a very common problem among new graduates. Fortunately, there’s a way now for students to consolidate these debts through the best student loan refinancing companies so that they will only have to deal with a single loan. This process is called student loan consolidation, and it’s highly recommended for new graduates who are looking for a less complicated way of paying for their student debts.
Who Can Help With Student Loan Consolidation?
Well, you have two options. You can either avail of a federal student loan consolidation or a private student loan consolidation. As the terms imply, federal consolidation is for outstanding debts payable to the government while private consolidation is for debts you incurred by borrowing from private organizations.
Financial experts usually don’t recommend federal consolidation because it can result in loss of some benefits. Private student loan consolidation, on the other hand, is advisable because it simplifies your payments and it can save you a lot of time and money.
Before you decide to consolidate your student loans, it’s best that you seek the advice of a financial expert so that you can look into your most viable options.
The Benefits Of Private Student Loan Consolidation
1.)You will be paying your debts at lower interest rates. This means that you get to keep more money in your pocket over the lifetime of your loans. You can use the amount you save to pay for your loans faster.
This new and lower interest rate can be as low as 1.90% if you have a good credit score or if you can show that your financial situation is more stable compared to when you took the loan.
2)You can change the rate for your loans from variable to fixed. This is only applicable to private loans because federal student loans only come with fixed rates. A fixed rate will be beneficial to you in the long run.
3) Life will be easier because you don’t have to contend with managing multiple student loans. Once all your debts have been consolidated in a single account, you only have to make a single payment every month. It will also be easier for you to find out how much you still have to pay.
If you are still wondering who can help with student loan consolidation, your main option is to seek the assistance of a private student loan consolidation company. The company will help you in putting all your outstanding loans in a single and manageable loan account.