It may seem very alluring to consolidate all your
student loans with the help of student loan consolidation companies but where
on one hand it may simplify things for the student on the other hand it may
also result in the loss of a few rewards. Here we will discuss all about
student loan consolidations, their benefits and their negatives too.
What is a direct consolidation loan? This is
that kind of loan which helps you consolidate all sorts of various federal student
loans and create them into just one. This results in just one outlet of payment
monthly instead of the student paying ten different loans in ten different
payments. Student loan consolidation companies like Chase, Wells Fargo and a
few others can help one in this process. There is seldom any fee required to be
given to apply for student loan consolidation. And as a precaution if someone
contacts the student and asks for a fee for this process then he or she is not
from the United States Department of Education and is bogus.
Should one take up consolidation of loans or not? The perks of consolidating student loans into one is a great way of simplifying all the hassle related to repaying the debts. There are many repayment modes to choose from and instead of paying variable rate of interest the student can avail of one fixed rate of interest. The repayment period can also be extended up to thirty years! But apart from these perks there are a few cons too. The student who avails of consolidating his or her student loans might loose out on principal rebates, discounts on rate of interest, loan cancellation benefits etc. Also the longer period a student opts for repaying the more he or she has to pay in the long run. So it is advisable that one must calculate all the pros and cons of taking up or not taking up consolidation of student loans and then make their decision.
The types of loans that can be consolidated. There are
many kinds of loans which can be subject to consolidation some of them are-
l
Direct plus loans
l
Direct subsidized loans
l
Supplement loans for students
l
Federal nursing loans
l
Existing consolidation loans
Apart from these direct subsidized loans, health
education assistance loans and a few others are subject to be considered at the
time of consolidation. A good student loan consolidation company can do it for
the students.
All the above discussed details give a clear
glimpse of what it takes to avail of student loan consolidations. There are
pros and cons attached to this decision and students are advised to take it up
only after having given a lot of clear thought to it. This said it is
imperative to not see how simple can consolidation of loans make ones life and
they must go for it but after having properly researched and discussed every aspect
of it.