With most student loan consolidation it is always best that you have a clear understanding of the exact details of your loan conditions and their possible implications. Just always consider all of your option before you commit yourself to a few years’ worth of payments.So here are 5 great tips you need to consider before you go ahead with your consolidation plans.
Tip 1: The Interest Rates For Everyone Will Be The Same Rate
All federal student loan consolidation rates have to start with the rates as suggested by Congress each year. Loan institutions are required to give every person the same suggested rates.
Tip 2: Money Savings
There are considerable benefits and other discounts when you are consolidating your loan, particularly If it’s your first time.
You may receive additional savings off your new rate for using automatic payment facilities.
You may also receive even more off your loan repayments if you consolidate within your grace period.
More benefits: if you have over $20,000 in student loans, you may receive additional savings after you complete your first 36 payments in a timely manner.
Tip 3: Read The Small Print Before Signing!
There are some companies that will offer what seems to be very attractive rates at first glance. For instance, if you were to make the first two years of payments on time, then they may offer an additional 1% in discounted fees. However, if you read the small print, then you may find that that offer will only come into effect if your loan rises above $50,000. This is great, but when you consider that, historically, only about 17% of all student loans will ever be this high or higher. So then it becomes a not so attractive offer.
Some other loan institutions may offer additional non-payment grace periods of a few days, but check to see if there is enough time to cover the delays that can often occur in mail delivery, you may lose these additional benefits due to circumstances beyond your control. Bottom Line – Make sure you read the small print.
Tip 4: Research the Companies Customer Service Policies
Another useful thing to consider is when you are contacting the finance company, observe what their front-line customer approach feels like. Do they have a friendly ‘feel’ about them, are they helpful, are they too pushy, do they really value their customers and are not just paying them lip service?
Also are they knowledgeable on all facets of student loan consolidation, and how is their speed of service and helping you with the information you need.
Tip 5: Other Financial Options
It may also be beneficial to look at some other options as well. Think about gaining funds from other sources. Once you have sorted your loans out, it is important to pay them on time. Think about setting up some form of passive income from either a web based business or even think about doing your own crowdsourcing or fundraising methods to help you pay your loans even faster.
I trust that these tips will help you find the best solution for your student loan consolidation.