Getting Student Loans Consolidated with the Best Interest Rates

Getting your student loans consolidated is one of the most critical things that you can do after college. Instead of making multiple payments to multiple lenders, you should most likely try to get them consolidated into a single loan. In most cases, you only do this once in your life, so it is not common practice. Therefore, the process of consolidating them and getting the best rate can be kind of confusing. Here are a few tips to find the best rate on student loan consolidations. 

Shop Around

The first thing you need to do is start shopping. There are a number of different places that you can look for the best deal on a student loan consolidation. It is important that you don't just go with the first bank that comes up. Just because your parents use a bank does not mean that it is the best place for your student loans. Don't be afraid to visit ten different places or more if it helps you find the best interest rate on your student loan consolidation. These student loans are going to be with you for a while. Therefore, finding the best rate on them can save you thousands of dollars in the long run. Making your monthly payment lower for the next several years will help you in a number of ways when you are first starting out in the professional world. Make sure to keep looking until you are sure that you have the best deal. 

Banks

Start out at the most convenient place and look at your local banks. Banks offer loans for everything from houses to student consolidation loans. If you can find a good deal on a consolidation loan at a bank near where you live, it will make it that much easier to take care of. 

Credit Unions

One often overlooked source of student loan consolidations is credit unions. Credit unions are a great source for lending for anything. Student loans are no different. They present borrowers with a unique opportunity for their lending needs. Credit unions are non-profit organizations. As such, they are tax-exempt. They pay no taxes to the federal government, which saves them a substantial amount of money each year. With this competitive advantage, they can pass the savings on to you in the form of lower interest rates. Credit unions may also offer you a lower interest rate if you open a checking account with them and have the monthly payment automatically deducted out of your account. While it may only be a quarter of one percent, every little bit helps. 

Online

Once you have exhausted the local market, check out your resources that are available to you online. There are thousands of different lenders out there and they are willing to compete for your business. Doing a quick online search will help you find the best rate for your student loan consolidation. 


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