Student Loan Debt Consolidation
As you’ve read from my previous posts,
I was the Master of Financial Disaster.
By not paying my student loans in a timely fashion,
it has cost me many, many thousands of dollars in late fees,
penalties, collection fees and other miscellaneous fees.
I’ve paid over $11,000 just in the last 2 years
from garnished wages.
PLUS… the forfeiture of my state income tax return money.
And this is on just a $10,000 loan.
Today, tuition rates are much higher.
The cost of Higher Education gets Higher every year.
Just imagine you borrow 3 or 4 times as much
as I have and had to pay back 3 or 4 times as much
as I did. You might as well just give them your house.
But there are ways to avoid the pain and misery I suffered.
Pay your loans (on time) and lower your payments
by consolidation your student loans.
The advantage Consolidating your Student Loans is that
you lock in a fixed interest rate for the life of your loan.
Caution: If you consolidate today, you cannot re-consolidate
your loan at a new lower rate in the future.
Consolidating your student loans might be a great way
to reduce your monthly payment and help you manage
your budget. A Consolidation loan will get you a fixed interest
rate and a lower monthly payment.
Keep in mind however, that debt consolidation lowers your
monthly payment, but increases the total cost of repaying your
student loan if you choose a longer period of time to repay.
This strategy works best when your earning power is lower.
You pay for a longer period of time, but your monthly
payments are less. There are no fees associated with a
Federal Student Consolidation Loan.
And, there are no penalties for paying off your student loan
debt early. You are eligible for a Student Loan Debt Consolidation
during periods of:
Grace - The specified period of time between the date
you graduate or drop below half-time status and the date loan
repayment begins.
Repayment - The time during which you’re actively making
payments towards an education loan.
Deferment - A period in which you may qualify to suspend
student loan payments.
Forbearance - Temporary postponement of payments
or smaller payments.
If your loan is already in default status, you must be
in repayment on your defaulted loan (that is, three voluntary
on-time full monthly payments) or…
…Have agreed to repay the consolidation loan
under an income-sensitive repayment schedule.
Next time - Student Loan Consolidation Rates!
TAGS:
Federal Student Consolidation Loan