Consolidating My College Loans
Consolidating college loans is essential to help make your monthly bills manageable. Many college loan payments add up to major monthly expenses. Consolidating your college loans allows your payments to be lowered by as much as half by creating a new single loan payment.
The Basic Facts
- Usually, a Federal Student Loan replay starts six months after graduation.
- Start the consolidation process before graduation or shortly after to allow processing time.
- It needs to be started within six months of graduation and can take around three months to complete.
- Prepare a strong plan when you are preparing to qualify for consolidation.
Step 1 - Gather Loan Records
Gather everything associated with each student loan, including original signed documents, detailed paperwork, such as the loan letter with repayment terms and figure the debt. Other important information to consider is:
- The type of loans and the terms.
- The loan lender and related information.
- The loan length and set monthly payment.
- The fee related to the loan.
Step 2 - Consolidation Requirements
The requirements for consolidating my college loans are reasonable. Anyone interested in consolidation must be a graduate and have more than one current college loan. Qualifying is also determined by the graduate's loan standing and amount owed. Once everything is in order and gathered, it is time to search for a provider.
Step 3 - Researching The Agency For Consolidating My College Loan
Contact your college financial aid office if you need help finding old paperwork or a lender. Your college financial aid office can help you by providing private loan and non-federal lender information. Also, take advantage of online resources in order to find the perfect company. Some consolidation loans have low interest rates and some have fixed interest rates. Interview companies in various areas:
- Check pricing, customer service, low APR and rewards.
- Investigate any penalties.
- Ask about repay options and find a personal payment plan.
Step 4 - Apply For A College Loan Consolidation
Once all your research is finished, it is time to apply for a college loan consolidation. Often companies allow applications by mail, by fax or online with individual help through the process. College loan counselors often help with this process. There is a variety of companies and each has their own application process. For some companies all you will need to do is fill out an application.