If you are among the thousands of Americans who are inspecting consolidating their student loans, you may not know all of the pluses that a consolidation program can offer you. Here is an explanation of the former advantages that a consolidation can bring to you:
1. Lowered interest rates: clubs will immediately lower your interest rate, typically about .25%, and then after 36 consecutive on-time payments they lower your interest rate by .75-1.0% or more. (Specific timelines and interest rates depend on the individual companies)
Should I combine My student Loans?
2. Fixed interest rates: former student loans do not have a fixed interest rate. By consolidating your loans you lock in a exact interest rate that will never increase.
3. Extend the pay period: An former student loan is commonly paid off in a 10 year time span. Consolidating allows the loan to be extended over a duration of 15 years or more.
4. Lower monthly payments: Due to the fact that the life of the loan is extended over a longer duration of time, this means that the monthly payments can be lowered. Typically, the payments can be lowered to 55-70% of the current monthly payment.
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