Being in the real world is so much different from being in school. Many fresh graduates find his out the hard way, especially those who are burdened with multiple educational loans.
To make their lives easier, a lot of these new graduates choose to go for student loan consolidation. Will this be a good option for you too?
You have to take the time to do some thinking and make considerations like:
- Is it really too hard for you to pay off your multiple debts?
- Are you eligible for loan forgiveness?
- Have you reviewed all your borrower's incentives?
Knowing the advantages and disadvantages of student loan consolidation is also a great help in your decision-making. So what are the good things about consolidating your debts?
1. You get the chance to lock in on a fixed low interest rate
2. Your current loans are paid off by a consolidator so you only have to pay one lender every month with a lower payment rate and extended loan life
3. Your credit rating improves since your open accounts will be lessened
What are the bad points of debt consolidation?
1. Because of the loan extension, you will end up paying more in terms of your interest rate
2. There are requirements that must be met including: loans must be from certain creditors, the payments must not be in default, the sum of all debts must be over $10,000 and the borrower must already be a graduate.
3. It might turn out that student loan consolidation is not the best option for you. If you have mostly federal loans, there is a great chance you can avail of loan forgiveness by doing some volunteer works or getting jobs in underserved communities if you happen to be a lawyer, doctor or a teacher by profession.
CLICK HERE To Learn How To Consolidate Your Student Loan The Right Way.
Learn Tips And Professional Advice On Student Loan Repayment By Going To: http://www.StudentLoanRepaymentGuide.com
Be Debt Free Sooner!
Article Source: http://EzineArticles.com/?expert=Lorrie_Barstow
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