October 17, 2006
Student Loan Consolidation – Why you should consolidate
Why is federal student loan consolidation the best option?
Consolidating your federal student loans is important. Your Stafford, PLUS, and Perkins loans qualify, but you should NEVER consolidate yout private loans with your federal loans (more on that in a future post). Student loan consolidation is a refinancing program that:
* Reduces your monthly payment up to 60%
* Locks in your interest rates
* Simplifies your finances by creating one low monthly payment
* Improves your credit rating
* Saves you money today when you need it most
* Provides flexible repayment options
* Reduce your interest rate as much as an additional 1.25% through a borrower benefits package.
Consolidation can significantly reduce your monthly payment burden. Student loan consolidation allows you to stretch your repayment period from the standard 10 years to up to 30 years, depending on the amount of your education debts. The lower payment means you’ll have more money available to meet other household expenses, including car payments, childcare, and career-related necessities.