Saving money through student loan consolidation - even after borrower benefits have disappeared!
Friday, October 5th, 2007Here are some tips on making federal student loan consolidation the most beneficial for you:
- Consolidate within your 6 month grace period (which may be coming up if you just graduated in the Spring)
- Extend your term to the maximum length of time allowed. This type of loan does not work like a mortgage loan, shorter terms do not offer better interest rates. Plus, there are no early payment penalties so if you choose to pay it off sooner you absolutely can.
- Include all loans, even if you have previously consolidated. This will help reduce your weighted average interest rate, making your consolidation rate as low as possible.
- If you cannot afford to make payments right now, you can contact your servicers before or after your consolidation and request a deferment or a forbearance. Whatever you do, don’t let your loans go into default! It will haunt you and your credit a long time.
- Have all of your loan information ready when you apply. You can find this information by calling 800.4FEDAID or by clicking onto http://www.nslds.ed.gov/nslds
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If you are interested in learning more about how to save money through consolidation, please feel free to contact us directly at studentlsc@gmail.com or visit us at www.studentlsc.com
