How to Consolidate Student Loans
If you got student loans and are now facing difficulty in paying them back collectively you could be putting your studies in danger. Consolidating all these student loans is the best option you got. This option allows you to combine all loans and formulate a new monthly instalment plan.
However, everything is not good in this facility as even a simple mistake or negligence can make your financial crisis worse. Make sure that you understand the procedure as you can reap all the benefits only if you are applying for consolidation in proper manner.
Instructions
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1
Why you want to consolidate student loans:
You must not apply for consolidation just because it allows you to merge all federal loans and devise a new payment plan. Ask yourself whether you really need this or not. The best way to determine is to calculate your income, estimate your expenses, evaluate your savings and check the monthly instalment plan. If you feel that you are not able to make both ends meet then do not hesitate in applying for consolidation of loans. -
2
Know the proper procedure:
Now, when you are clear about everything, you should find out the right procedure to move your application. You can apply online but there is also a facility to submit your application by post. This financial plan offers you to consolidate Supplemental Loans for Students (SLS), Direct Unsubsidized Loans, Health Education Assistance Loans, Federal Perkins Loans and Federal Family Education Loan. -
3
Pick the financial institution:
Next thing you should do is to decide the institution that can provide you assistance in consolidating student loans. You may go for a bank, financial company, private lender or credit cards. However, it is better to engage a bank as they are one of the most reliable and secure financial institutions for such procedures. -
4
Formulate a payment plan:
After completing your homework, you should work on a monthly instalment plan. As described earlier, you should keep your income, savings and expenses in mind while devising a payment plan. However, be prepared to compromise as you cannot force the financial institution to give your desired plan. If there is any conflict then try to find a middle ground and get the interest rate as low as you can. -
5
Avoid financial scams:
Do not look for extra relaxation as most of companies, offering unusual plans, are usually scams or fraud. Do not let them rob you.
