October 8, 2006 1:22 AM
Student Loan Debt Consolidation: Pros And Cons
You can consolidate your federal student loans too, but make sure that you do not consolidate both your federal student loans and private student loans into a single student loan debt consolidation program. Just as other debt consolidation loans, you must make your student loan debt consolidation payments to a single lender, who further disburses to your old creditors.
To go for debt consolidation of your student loans, your minimum balance should be $5,000, and you must either be in the six month grace period after your studies, or are already repaying your student loan.
Before selecting your student loan debt consolidation option, review all the advantages and the disadvantages:
• Through debt consolidation you make your student loan payments to a single lender.
• Depending on the balance of your loan amount, your consolidated student loan has an extended repayment term from 10 to 30 years.
• When negotiating with your bank or financial institutions, ensure that your phased repayment plan allows you to easily meet your monthly payments and have a good credit rating, at the same time.
• The rate of interest for student loan debt consolidation is capped at 8.25 percent for federal student loans.
• Once the rate is fixed you cannot take advantage if the interest rates fall in future.
• There are no fees charged for student loan debt consolidation.
• Once approved, you cannot undo your debt consolidation of your student loans as they have already repaid in full to your previous creditors, and they no longer exist.
You can still obtain debt consolidation for your over due, or unfulfilled, student loans if you negotiate a satisfactory repayment plan with your bank, or debt consolidation lender. Married couples, too, can consolidate their individual student loans together. This is regardless of how much each owns before consolidation, and must now agree to pay the consolidated amount.
Source: EZine10/26/06 | Credit Card Debt Consolidation FAQ
10/26/06 | The Best Use Of A Debt Consolidation Loan
10/22/06 | How To Find A Debt Consolidation Loan Online?
10/21/06 | 9 Ways To Pay Off Your Debt
10/17/06 | Debt Consolidation Solution From Bank Of America: CleanSweep Line of Credit
10/08/06 | Are Free Debt Consolidation Services A Scam?
10/08/06 | What Is A Debt Reduction Agency?
10/08/06 | What Is Students Loan Debt Consolidation?
10/08/06 | An Overview Of Federal Student Loan Consolidation Programs
10/08/06 | Important Qualities Of Debt Consolidation Advisor
10/08/06 | Debt Negotiation Or Debt Consolidation?
10/08/06 | Do You Need A Debt Consolidation Company To Help Your Debt Consolidation?
10/08/06 | What Is Credit Repair Loan?
10/08/06 | How To Choose The Right Credit Counselor
10/03/06 | Paying Off Debt Quick In 9 Ways
10/03/06 | How To Use Debt Consolidation To Avoid Bankruptcy
09/25/06 | What Is VantageScore?
09/10/06 | Charge Off Does Not Stop Collection
09/10/06 | How To Stop A Debt Collector From Contacting You?
09/10/06 | 12 Benefits of Do-It-Yourself Debt Settlement
09/09/06 | Debt Consolidation May Hurt Your Credit Score
09/05/06 | Staying Away from Debt Consolidation Companies!
09/05/06 | 12 Warning Signs of Debt
09/05/06 | Top 10 Ways To Get Rid Of Debt
09/05/06 | 10 Debt Consolidation Myths #10: Bankruptcy Is No Big Deal
09/04/06 | Get Out of Debt In 11 Easy Steps
09/04/06 | Eight Things to Do Before You Turn 30
09/04/06 | Nine Ways to Pay Off Debt
09/04/06 | Improve Credit in 5 Easy Ways
09/04/06 | 10 Debt Consolidation Myths #9: Bankruptcy Is Too Bad To Jump To
09/03/06 | 10 Debt Consolidation Myths #8: Debt-Management Plan Helps Credit Rating
09/02/06 | 10 Debt Consolidation Myths #7: Debt Consolidation Always Saves You Money
09/01/06 | 10 Debt Consolidation Myths #6: You Need A Formal Debt Management Program
08/31/06 | 10 Debt Consolidation Myths #5: Debt Settlement Is Easy and Cheap
08/30/06 | 10 Debt Consolidation Myths #4: Debt Management vs Debt Settlement
08/29/06 | 10 Debt Consolidation Myths #3: Some Companies Can Offer Very Low Rates For Me
08/28/06 | 10 Debt Consolidation Myths #2: Your Monthly Payment Can Be Cut In Half
08/27/06 | 10 Debt Consolidation Myths #1: Credit Counseling Equals Debt-Management Program
08/24/06 | Different Types of Debt Consolidation