Why You Should Consolidate Your Private Student Loan
Multiple loans attract high interests. They can be a burden on your income if not managed properly. They may discourage you from working because at the end of the month you get peanuts as your income. Therefore, if you are servicing several student loans, you need to consolidate them into one due to the following main reasons.
Benefits of Consolidating your loan
Saves time and money
Consolidating your student loans into one is easy and convenient when it comes to refinancing them. You only service one consolidated loan with a single interest rate.
Provides the opportunity of choosing the best rate
Refinancing your loans into one enables you to choose a rate that suits your needs. For instance, you have the choice of going with either a fixed or variable rate.
Provides a gateway to additional savings
Refinancing your student loan into one helps you get additional ways to save more. This is because the technique attracts either attracts no fees or penalties. For instance, your interest will be automatically be reduced by 0.25% after making automatic repayments. Also, if you make repayments beyond your minimum due saves you even more money. For example, if your loan is $20,000 and assumes a monthly interest rate of 3.53%, you will save more than $1,300 month if you pay $175.This means that you will save a total of $2,000 if you round your monthly payment to $200.
Flexible repayment terms
With loan consolidation, you can choose between makings monthly installments based on a given an interest rate (only payment for the first two years) or take 15 years to refinance your loan. All you need is to examine whether you meet certain requirements, and you will be a step ahead.
Easy to apply
The application process saves time and money. It takes 2-4 weeks. You only need to check your eligibility and ensure that you are a legal adult as defined by your country laws, have an outstanding student loan and you are a legal citizen of your country.
Student loans attract interest and penalties if not repaid as required. Also, it can be frustrating for those with numerous student loans. However, you can consider your frustration a thing of the past, if you make a wise decision to consolidate your loans into one for you, will save time and money, have the opportunity to choose the rate of your choice with flexible repayments, help you save more, and is easy to apply. Make a choice and consolidate your student loan today.