Student loan consolidation can be the recent college graduates best friend in the world. Nothing could be better than exponentially lowering the monthly payment of student loans during a time of such difficult transition that even deciding what socks to wear each morning can be all to overwhelming. For those students who have had to rely on the help of private loans or personal student loans instead of or in addition to federal student loans, consolidation is even better according to Jason Spencer Student Loan.
Private loans generally have much higher interest rates than federal student loans and knowing that they are hanging over a student’s head as he or she approaches graduation can be one of the biggest, most worrisome burdens imaginable. In an ideal situation, students could consolidate their private loans right with their federal loans, but that is simply not possible. However, even the relief of lowering the monthly payment of personal student loans is just that – a huge relief according to Jason Spencer Student Loan.
With most private loans, the student needs to have a cosigner. He or she does not necessarily need a cosigner in order to consolidate private student loans, but having one can never, ever be a detriment. Furthermore, if a student can find a cosigner with an excellent credit score, then his or her interest payments might end up being exponentially lower. A lot of companies also offer what is known as a cosigner release benefits. This means that if the student makes payments on time for a set span of time – such as four years – then the cosigner will be completely released from the debt.
Many consolidation companies offer other added benefits for student loan consolidation. For example, some companies allow borrowers to make interest-only payments. This means that the student can get rid of a lot of the interest, thereby lowering the amount of the actual loan and loan consolidation. This thus allows the borrower to save a substantial amount of money in the long run. Moreover, a large number of consolidation companies extend the maximum loan payment an addition ten years over the average student loan term. This, too, allows the monthly payments to be lower. However, in most cases, the borrower is not penalized if he or she is able to repay their loan earlier than the time set by the student loan consolidation plan – if, for example, they later get a high paying job.
By submitting to a student loan consolidation plan, a student has a chance to get ahead. The time following graduation, whether a student has finished his or her education or intends to continue on to graduate school, is a huge transitional period. It can be confusing and hectic and in most cases, students face the burden of immediate debt due to their student loans. Tuition costs are rising every year, meaning that students accrue more and more debt during the course of their college educations. By simply being able to consolidate any private loans, students are ensured a lower monthly payment, which can be so beneficial during a time of such change.
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