Consolidate Student Loan For You

Should one Consolidate Student Loans or not? Let's think about it.If you are graduating or are about to do so, you might be going to consolidate your student loans, but should you? What does it mean to consolidate student loans?To consolidate student loans, means to replace your ongoing student loans with one big loan and then start to slowly repay this loan. Student loan companies promise that if you consolidate your student loan, your monthly payment will be reduced to up to 60%, and a lower interest rate. For more information see Student Loan Calculator.When should you consolidate student loans? It’s recommended to consolidate student loans during grace or repayment period; as this might get you a lower interest rate. Some students consolidate immediately after graduation, yet this is not recommended because you might lose some subsidies. Sometimes getting an extended repayment will get you lower monthly payments than if you consolidate student loans.Some loans have a fixed minimum interest rate, so even if you consolidate student loans, your interest rate will not be reduced more than this minimum rate of the loan.Consolidate student loan jointlyIf you choose to consolidate student loans with your spouse, it might not be the greatest idea. If you need a deferment due to unemployment or some kind of emergency, then the deferment has to be approved for both of you. In addition, if one dies or you get divorced, the other has to pay for both individuals.Understanding the interest ratesWhen you choose to consolidate student loans, make sure you know the resulting interest rate. In most cases, the interest rate is apparent on the statement and before you apply. Yet, if it’s not, make sure you call up your lender and ask. One rule to follow when you consolidate student loans is to ask about everything and make sure you know all the hidden rules.

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