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How Student Loan Consolidation Can Save You A Bundle

By Edited Nov 13, 2013 0 0

Do you feel overwhelmed by the sizes and amounts of your student loans? Don't you wish there were a way for you to not only reduce the amount you pay every month, but to also pay off your loans years sooner? Well if your answer to either of these questions is 'Yes!' then student loan consolidation services may be exactly what you're looking for. Not only can you reduce your payments and pay your loans off sooner, but all of this can be done at no cost to you!

Student loan consolidation works by finding a lending company that will pay off all of your outstanding student loan debt. This lending company will then provide you with a single loan, usually at a much lower rate than your original ones. This new loan will also generally have a much shorter term because you've reduced your interest rates and thus can pay off the principal more rapidly.

Even if you don't have many student loans you can still benefit for loan consolidation. With as little as two different loans you can consolidate them into one at a remarkable savings. Remember, even if you lower your monthly payment by only five dollars, that comes out to a savings of sixty dollars per year. Multiply that by the term of your loans and you can see that you could save yourself hundreds or thousands of dollars, without very much effort!

There are some tips to keep in mind that can help make the process of student loan consolidation much easier. Search for many different lenders and contact at least three of them so you can compare the rates and terms available. Make sure you ask about what kinds of restrictions there are on the types of debts you can consolidate. With some lenders it can be more difficult to consolidate debts from private lenders versus debts from the federal government.

Also, ensure that you pay your current loans on time and are up-to-date as a lender will not consolidate defaulted loans. Debt forgiveness terms will often be changed when consolidating your loans so be sure you discuss the new terms with your lender. Do your best to shop around and make sure you're getting the best rates and terms because most lenders only allow you to consolidate your student loans once.

If you follow the tips i've outlined in this article then you'll surely find a student loan consolidation service that's right for you. Imagine being able to lower your monthly payments and pay off your loans years sooner! It really doesn't take that much of your time and can save you a bundle. Give it a try and i'm sure you'll be pleased with the results.



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