Title: Consolidating Student Loans - The Major Benefits
Category: student loans
Consolidating student loans is simple, easy, and quick. You'll wonder
why you didn't do it sooner. Here are the major benefits you enjoy when
• Simplify your life. After combining your student loans together,
you'll have just one loan, one interest rate, one payment and one lender.
If you're a busy adult like most of us, this is a valuable benefit.
You'll save time and the stress of paying two or more payments each
• Save money over the life of your loan. The amount of money that you
will save will depend on your choice of a lender, and the amount of
student debt you currently have. Many lenders have incentives in the
form of a small interest rate reduction for paying your payment by
automatic debit from your checking account or credit/debit card monthly.
Others offer lower interest rates after a certain number of on-time
payments have been made. Every little bit counts. Just a small
reduction in the interest you are paying can result in significant
savings over the life of the loan.
• No credit check required. Did you know that you don't even have to
undergo one of those bothersome credit checks to qualify for a
consolidated student loan? Well, you don't. How's that for easy
• Improve your credit rating. Is this really possible? Yup, it really
is. When consolidating student loans, your old loans are paid off and
your credit report will show only one new loan open. Creditors usually
rate one open loan at a higher rate than a few open loans, so you will be
rated as more credit-worthy and your FICO score will rise within a few
months as long as you keep your payment current. This will raise your
credit score and improve your chances of qualifying for new credit when
it comes time to buy a car or a home. There are only a few ways to
improve your credit score quickly, and consolidating student loans is one
• Lower your monthly payment. Depending on your lender, you may be able
to get a lower interest rate going into the consolidation loan. With
that drop in interest along with discounted interest rates for on-time
payments, etc., you will most likely have a lower monthly payment on your
student loan. Could you use extra money each month? What a silly
question! Of course you could. Consolidating student loans will free up
some cash for you every month. And I'll bet you can find a lot of uses
for that extra cash!
• Safeguard your future. With a lower monthly payment and extra cash
each month, it should be much easier for you to stay current on your
student loan payment. Now you won't be in danger of being disqualified
from future Pell Grants for higher education if you need them. You also
won't risk falling behind on a federal debt which can bring out the IRS
forces and other methods of collection that the government uses. You can
be assured that your financial future is secure, and you can focus your
energies on building your assets and cash reserves.