low interest debt consolidation loans by smashingpumpkins

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									TOP 10 MYTHS OF CONSOLIDATION
MYTH #1 Borrowers who consolidate lose all of their deferment eligibility FACT When they consolidate, borrowers retain the core deferments which can be key to student loan repayment, including in-school, graduate fellowship, rehabilitation training, economic hardship, and unemployment deferment eligibility. For information on loan consolidation visit www.cfsloans.com/ama or call 866-737-2979 (Toll Free) to speak to a dedicated loan counselor.

MYTH #2 Borrowers taking out consolidation loans have to extend their repayment period and pay a great deal of additional interest. FACT Borrowers are not required to extend their repayment terms on their Federal Consolidation Loans. Many borrowers consolidate simply to lock in a fixed interest rate or gain the convenience of one monthly payment. This will be especially true this year because of the low student loan interest rate. For information on loan consolidation visit www.cfsloans.com/ama or call 866-737-2979 (Toll Free) to speak to a dedicated loan counselor.

MYTH #3 Consolidation is for borrowers who don’t know how to manage their money FACT Refinancing student loans through consolidation is a proactive financial management decision, not a borrower’s last resort. Borrowers choose to consolidate to take advantage of a number of benefits, including low fixed interest rates, flexible repayment options, and single-billing convenience. For information on loan consolidation visit www.cfsloans.com/ama or call 866-737-2979 (Toll Free) to speak to a dedicated loan counselor.

MYTH #4 Consolidation encourages a lifetime of debt and excessive interest FACT For inexperienced borrowers, student loan consolidation can be a significant first step toward savvy financial management. Many borrowers choose to consolidate simply to achieve a fixed interest rate while keeping their repayment terms at 10 years or less. For information on loan consolidation visit www.cfsloans.com/ama or call 866-737-2979 (Toll Free) to speak to a dedicated loan counselor.

MYTH #5 It is wise to research and apply for a consolidation loan online FACT Student loan consolidation is a complex financial decision, and should be discussed with a qualified loan counselor. The web-based applications offered by many lenders can be a convenient means of obtaining a consolidation loan after the borrower has contacted a professional to explore the repayment options and other key points of consolidation. For information on loan consolidation visit www.cfsloans.com/ama or call 866-737-2979 (Toll Free) to speak to a dedicated loan counselor. MY MYTH #6 Borrowers can choose the consolidating lender with the most competitive terms FACT A borrower whose student loans are held by two or more different lenders is able to compare the various programs available and select the loan whose terms and conditions are most favorable. However, a borrower whose student loans are held in their entirety by a single holder is obligated to seek consolidation through the same holder. As long as the holder offers a consolidation program with an income-sensitive repayment option, the borrower may choose consolidation only through the present holder, even if the borrower would prefer a different consolidation loan with more favorable terms and benefits from another holder. For information on loan consolidation visit www.cfsloans.com/ama or call 866-737-2979 (Toll Free) to speak to a dedicated loan counselor.

MYTH #7 It is not possible to consolidate private educational debt FACT Private consolidation loans are available from select lenders, such as Collegiate Funding Services. Terms vary widely; borrowers should seek a private consolidation loan that offers low rates and fees, plus the ability to consolidate private and federal student debt with a single loan. Consolidating your loans will give you the opportunity to spend your hard-earned money on things more worthwhile, like a home. For example if you were to consolidate and reduce your monthly payment by $250 you might be able to increase the price of a home you are looking for by more than $35,000. That could be anything from an extra bedroom to a three-car garage or even a swimming pool.* For information on loan consolidation visit www.cfsloans.com/ama or call 866-737-2979 (Toll Free) to speak to a dedicated loan counselor.

MYTH #8 Borrowers who consolidate do not have the option of changing their payment plans once the loan is complete FACT Borrowers are able to change their payment plans on an annual basis. What’s more, the no-fee prepayment option allows borrowers to make extra payments at any time, greatly reducing the cost of interest and length of repayment. For information on loan consolidation visit www.cfsloans.com/ama or call − TOLL FREE 866-737-2979 − to speak to a dedicated loan counselor.

MYTH #9 All consolidation loans are created equal FACT Consolidation loans are available through the Family Federal Education Loan (FFEL) and Direct Lending programs, and the terms available for FFEL consolidation can vary widely. Depending on the lender, borrower benefits can include discounts for on-time payments and automatic debit. For information on loan consolidation visit www.cfsloans.com/ama or call 866-737-2979 (Toll Free) to speak to a dedicated loan counselor.

MYTH #10 The consolidation process is very complicated FACT Actually, the Application/Promissory Note is only one page in length. The borrower provides basic demographic information, lists his/her student loans on the application, and signs the document. The consolidating lender does the rest. For information on loan consolidation visit www.cfsloans.com/ama or call 866-737-2979 (Toll Free) to speak to a dedicated loan counselor.

*IMPORTANT: This information is provided as a general overview. Neither the AMA nor CFS are engaged in rendering legal, accounting, tax or other professional advice services, and we are not qualified (nor is it our intent) to provide such. To determine your eligibility and learn how these benefits apply to your specific situation, we encourage you to consult with your financial planner or mortgage broker.


								
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