About one in every three students who have taken up student loans end in debt after graduation. This is one reason why student loan consolidation exists.
First and foremost, loan consolidation isn't necessarily for everyone, so see whether you'll truly benefit from consolidating your loans or not. Do you feel you simply cannot afford your monthly loan payments anymore? Is there no other way to make your monthlies more affordable? These questions may help you decide. Now let's take a look at the good reasons why now might be a good time to consolidate.
Delayed Payments
You have other bills to pay for, and the way the economy is, it seems impossible to repay your loans. Consolidating enables you to delay your payments by a period of deferment. The repayment period can be lengthened from the usual 10 years to up to 30 years - you'll have more time to pay.
Multiple Due Dates Are Overwhelming
Through consolidation, you'll be able to gather all your loans into a single loan so that you pay on a single due date every month. The monthly payment is typically fixed for the whole term of the loan.
You Can Focus On Your Studies
Major banks can provide very lenient consolidation plans In fact some banks enable students to begin payment after graduation, so they can concentrate on their studies instead of worrying over loan payments.
You Can Take Advantage Of Government Perks
Since July 1, 2006, lenders are required to offer fixed, reduced rates with no credit checks to students who are in the grace period. Loans can be consolidated without having to spend on application fees and you have the option to pay earlier without prepayment penalties.
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