How Much Can a Stafford Loan Consolidation Reduce Your Payments

Consider a Stafford loan consolidation when your college career is over and you have the debt to prove it . There are many options to reduce your student loan debt,  Stafford loan consolidation is one option. How much can it really save? What loans qualify for Stafford loan consolidation? Where can you find information?

First Things First

Do your student loans qualify for a Stafford loan consolidation? Key qualifiers are:

  • You must have ten thousand dollars or more in student loans.
  • Only Government loans can be included when you apply for a Stafford loan consolidation.
  • You must be finished with school to apply.

Be Informed

First find out about your current loans. What is the current interest rates, penalties and terms. Find out everything you can about your current loans and lenders. Take detailed notes. You will need them later.

There are subsidized and unsubsidized Stafford loan types. Subsidized loans are loans that you are not required to pay interest on while you are going to school. Subsidized loans are also income based. The amount of the reward will depend on your financial need. Unsubsidized are loans that you are paying interest on when you initialize the loan. You may include both when apply for your Stafford loan consolidation.

There is no credit check is required to consolidate your Federal student loans. These loans are guaranteed by the Federal Government, therefore a credit check is not necessary.

Weigh the Benefits before You Make the Commitment

Get educated. Go to a web-site that has a Stafford loan consolidation calculator. Or call a financial aid representative  and givr them your loan amounts and interest rates. See how much you can really save.

Find out if there are any other types of incentives to get your loans consolidated. For example, it is important to keep in mind that  with Stafford loan consolidations, you may have longer to pay back your loans. If your payment and interest rate are lower, but it will take longer to pay, will you really be saving or spending more for your education?

So Really, How much can you save?

It may possible to  save fifty three percent on your loans or current loan payment schedule. Often, payments are cut in half.   Individual savings  depend on financial circumstances and can vary depending on income, credit, debt obligations, etc.  Other factors that could effect how much your loan will be reduced include  can be the age, or maturity date of your loans. Consolidating your loans can save you money.

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