Monday, May 4, 2009

Student Loan Debt Consolidation Will Keep You Afloat

By: David Horvath

For students having to bear the burden of debt on top of their academic burden they have something to rejoice. You would have accumulated multiple debts as you progress from class to class and then when you move on to a college. You would be naturally worried about your mounting debits on various loans and you would not be in a position to pay the monthly dues properly. There are now opportunities available to steer clear of your debt situation, by opting for a student loan debt consolidation. This scheme has its own privileges as it is designed exclusively for the students. This loan would merge all the loans that the student has taken through the years by merging them all and paying them off in one go. Naturally, the interest outgo every month would have been higher as you would have defaulted in your monthly payments. As those old loans corrode they would cause concern with their alarmingly rising interest. By opting for a student loan consolidation the fresh loan would have an attractive rate of interest and the monthly payment would be much easier now. The interest rate is also much lesser now and the monthly payment towards the consolidation loan is significantly lesser now. The amount saved in this manner can be put too much better use by the students.

There is another important issue that a student should consider. Consolidating the accumulated loans and paying them off is absolutely essential as such long unpaid loans with huge interest component will spoil their chances for applying for a car loan or housing loan in the future.

The options available are plenty, if you decide to go in for a student loan consolidation. You can stay with your original lender and use his plan for consolidating all your earlier debts or go to entirely different lender who offers a still better option. Some of these lenders really do offer great concessions to students opting for student loan consolidation. Interest rate cuts are available in future if you make prompt monthly payments. Now it is for you to take stock of the situation carefully and go in for the best offer from the best lender for student loan consolidation.

There is another interesting feature in a student consolidation loan. You can opt for a shorter tenure if you feel confident enough to pay it off on the near future or you may opt for a longer duration the ideal choice would be to go in for a shorter duration because the total interest outgo on the loan would be much less in such a scheme even if the monthly installment is a bit higher than you would be paying in a longer tenure loan. If you look around there are also student debt consolidation loans that offer a fixed interest plan if you are afraid that the rate of interest would go up every year. Go for it now and improve your credit ratings for the future.


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June 19, 2009 at 7:25 AM  

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