Title: Compare Student Loan Consolidation Rates In Choosing A Lender
Category: student loans
One of the most important thing to consider in choosing a lender is to
compare student loan consolidation rates. Most students who've graduated
find it wise to consolidate student loans upon graduation. The next
crucial step would have to be choosing the right lender from which to
apply a student loan consolidation from. Nowadays, there are many lenders
that offer you different loan consolidation programs, each with various
requirements, interest rates, and etc.
This article will give you some points to consider in selecting a lender.
Although it is very important for you to compare student loan
consolidation rates, you should also take into account some details in
choosing a loan consolidation program and a lender.
Comparing School Loan Consolidation Rates
You could cut your student loan payments by up to 50% or more if you
consolidate your student loans. This could mean big savings and thousands
of dollars on the life of your loan. You could also be able to lock down
a low and fixed interest rate for your monthly payments.
Ask about the rates. When choosing a lender, you should ask them about
the rates that they can give you. Usually, the interest rate on a
consolidation loan is calculated by getting the weighted average of the
interest rates (as of the date the application is received by the lender)
on all the loans you are consolidating, rounded up to the nearest one-
eight of a percent.
Other Things to Consider
Of course, there are other things to look into. It will also be wise if
you ask your lender to figure out your monthly payments and how long it
would take for you to fully pay the total loan balance. Also, you should
try asking about incentives, like additional breaks on interest if you
make your payments through automatic debits each month or if you
consistently make on-time payments for a specific period of time.
Lenders may ask for different requirements. There are some lenders that
will require you to have a co-signor, some optional, and some do not
require this at all. In lending companies that posts this as optional,
having a co-signor with a good credit background will let you enjoy some
benefits like lower interest rates.
There are some lenders who will ask for collateral, while there are
others who don't. Some lenders also set a minimum balance policy, and the
amount varies from one lender to another.
Easy application process is also one thing to look for in a lender. Now,
there are some lenders that provide online application that can be
accomplished in just a matter of minutes. The process is quick and all
information released is kept confidential. After 15 minutes of
submission, you will be immediately called by a customer service
representative on the contact number that you provided.
In the end, it's also about service. If you're comfortable and satisfied
with your current lender's service, then you can just check with them to
see if they offer loan consolidation. Either that, or you can check your
school's financial aid offices for a list of preferred lenders who have
provided tried-and-true working experience to former students.
These are just some things to consider. So if you are choosing a lender,
compare student loan consolidation rates and other details.