Student Loans

School Loan Consolidation Steps

You have finally finished college and you are on your way to looking for a better job. However, even before you finally land the job of your dreams, you find several bills in your mailbox. School loans, tuition fee loans, student loans and other types of loans you can think of that you have actually incurred during your time of study. On top of which you have your daily expenses and your monthly home bills. This can indeed give you headache. But there is a solution for you – the school loans consolidation. You are eligible to consolidate your federal student loans only after you graduate from college. This eligibility is a once in a lifetime offer, so you shouldn’t waste it.

How do you get school loan consolidation? Here are the steps.

First, double-check if you really qualify for school loans consolidation. You should have already finished your degree and you are not enrolled in any educational program as of the moment. Find your federal student loans – these are qualified to be consolidated. You should also check whether your subsidized and unsubsidized loans can be included.

Second, look for lending companies that offer consolidation. Various companies offer different benefits which you need to look into. You may opt for lenders that give discounts or lower rates if you are able to pay on time. Others do not offer discounted rates for school loan consolidation so you better read each plan carefully.

Third, consider what type of plan you want. Do you want one with a lower interest rate but you would have to pay for an extended period of time? Your monthly payments may be lower, but considering that you would have to pay it for a long time, let’s say 30 years, it may not look too good. Or would you opt for one with a higher interest rate but something you can clear faster? If you want to be out of debt as soon as you can, this is a better option. It all depends on your plans.

Fourth, gather all your loan information – loan bills, loan amount, loan interest, who your lenders are, etc. These are vital information that you need to give to the lending company who will give you school loan consolidation. They will use this to assess what kind of school loan consolidation plan they should offer you.

Fifth, decide fast and act fast. Every first of July every year, school loan consolidation rates increase. If you want to qualify for a lower rate, be sure to file your application before the said date. When you receive confirmation that your school loan consolidation has been approved, read through it carefully. There may have been some mistake, and you want to make sure everything is correct before they send you your bill. If not all loans have been consolidated, you can apply for re-consolidation with the same lending company of with a different one. If you want to reconsolidate with a different lender, make sure you properly inform your previous lender and that you complete the paperwork so that you would not have double consolidations.

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