Do you need to be rescued from your mounting student debts? Whether you are still in college or already working, student loans are a big hurdle in achieving financial independence. One way to lower your interest payments is to apply for college consolidation loans. Here's how to find out more about college consolidation loans and where to find them.
What exactly is a college consolidation loan? This is simply a way to refinance college loans by lumping together all your student loans to create one new loan. You are then left with a consolidated loan with a single lower payment fee per month. This frees up money to pay for other bills (like personal loans and credit cards payments) with much higher interest rates.
There are two basic types of college loan debt consolidation:
- Federal student loan consolidation - Rates are fixed for all loans made through the federal system. Examples of federal student loans are Perkins Loans, HEAL Loans, Federal Stafford Loan, and all other Federal FFELP and Direct Loans.
- Private college loan consolidation - This is meant for non-federal and education linked loans. Unfortunately, the interest rate for this type of loan is variable.
There are many student loan consolidators on the Web. When looking for a lender, it is best to seek advice from your school regarding which companies they recommend. They usually have a list of preferred lenders. In choosing the lender, compare the repayment fees, interest rates and terms that each vendor offers. Look for a company that offers the best rates. Thorough research and investigation is necessary before choosing a lender. Read the fine print! You wouldn't want to be charged for something you were not initially aware of.
FinAid, The Smart Student Guide to Financial Aid, is a great site that gives you tons of information pertaining to educational loans. It also lists the different education lenders. Click on http://www.finaid.org/loans/educationlenders.phtml to bring you directly to the lenders site. Some of the many lending companies that you can find in this link are:
Scrutinize the debt consolidators well. Find blogs or forums regarding college loan consolidation and the users' experience with the different companies. Make sure the company is legitimate and financially sound. Check with the Better Business Bureau for the lender's current business rating.
For more information on college loan repayment, application consolidation and other loan related matters, visit the following Web sites where you can find useful advice and resources:
One way to achieving your goal to become debt free is to apply for college consolidation loans. This type of loan will allow you to make one payment with a lower rate of interest instead of making multiple payments with multiple interests. There are many lenders offering this kind of service. Before choosing a lender, make sure to ask questions, review their terms and conditions thoroughly and know how capable you are in repaying the loan as quickly as possible.