Student loan debt is a big worry for many people like yourself. While college is a great tool, it is expensive and loans eventually must be repaid. Looming debt can keep you from purchasing a home, starting a family or following your dreams. However, there are options to help alleviate the stress that these loans cause while still allowing you to work towards the ultimate goal of paying the balance off entirely. Discover the benefits of student loan consolidation, and find out if it could be the right solution for you.
Simplify Your Payments
If you attended school for more than a semester or two, it is likely that you wound up working with more than one lender to pay for all of your classes. While it was likely a necessary evil to make sure your education was paid for, it has left you with numerous bills each month. Student loan consolidation means that you will have only one payment to one lender-reducing the payment hassle.
May Lower Your Monthly Payment
In many cases, a consolidated student loan can reduce the total amount that you will be responsible for each month. With everything else you need to do, and want to do, lowering this payment is an excellent way to free up money in your budget.
Repayment Based on Income
Borrowers who choose student debt consolidation have multiple plans for repayment available to them. These plans include repayment options based on income. If you initially obtained a loan before attending school, you had no idea what to expect regarding your future (post-school) income. Now, you know what you are earning. Your consolidated loan will better fit your budget.
No Minimum or Maximum
When you look at some lending options, you may find that maximums or minimums prevent you from taking advantage. Since this is a debt consolidation or restructuring, rather than a new loan, there is no maximum or minimum to worry about in this case.
Many People Qualify
Qualifying for student loan consolidation is easier than you may think. Borrowers must have one or more “Direct Loan” or Federal Family Education Loan”. This loan must be in the grace period or repayment status. Additionally, borrowers can consolidate most defaulted federal student loans.
The Options are Endless
Consolidating your loan can keep you out of default, make payment simpler and help keep your monthly payments at a reasonable level. But it’s important to realize that your options are endless. In many cases, you will be able to change your repayment plan at a later date if your economic situation changes or if you wind up with another loan that qualifies for consolidation.
As you can see, there are many benefits to student loan consolidation and more options than ever for doing so. If you are struggling with your loans and wonder if there is a better way, perhaps consolidation is the answer. Spend some time researching the consolidation options and reach out to an expert to learn more.