Advantages of Consolidation Beside the single monthly payment, - TopicsExpress



          

Advantages of Consolidation Beside the single monthly payment, which is very convenient, a consolidation loan may provide additional student loan repayment plans. Most government-backed student loans offer at least a couple alternative repayment plans, but consolidated loans offer a variety of options, including income-based repayment plans. With a standard repayment plan, a consolidation loan may lower your total student loan payment. This is often because a consolidation loans standard repayment plan can set you up to repay your loans in 15 to 30 years – instead of the ten-year standard repayment plan for individual loans. Also, the overall interest rate of your student loans may be lower when you choose consolidation. When figuring the fixed interest rate for a consolidation loan, your lender will use the weighted average of your current loans interest rates, rounded up to the neared 1/8 of a percent. This fixed interest rate may lower your overall student loan interest rate. Many older nonconsolidated student loans operate on a variable interest rate, and the rate can change every year on July 1. A consolidation loans fixed interest rate means you make a predictable payment, even if student loan rates change. And if you lock in a low interest rate before the rates jump up in a rising-interest environment, youll have even more of an advantage.
Posted on: Wed, 29 Jan 2014 16:49:52 +0000

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