What you should know about student debt consolidation

writersgeekinc By writersgeekinc, 16th Nov 2012 | Follow this author | RSS Feed
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This article is about What you should know about student debt consolidation

What you should know about student debt consolidation

All of you who have been in college and universities will agree with me that it can be quite hectic paying all the school bills alone when you have no one to support you. This is the reason why many students would prefer going for student loans to help pay off their school fees. However, as a student, it can be hard paying off the debt ones the students' loan firm wants the money back. What do you do in such a situation and you do not have a job? The only option here would be to go for another loan to repay the student loan. This process is known as student debt consolidation. The loan you get to repay the student loan is usually much bigger than the other. This being the case, it is important that you look at the advantages and disadvantages of student debt consolidation so you do not get surprises later on. Before the advantages and disadvantages, let's first look at who is eligible for the loan.
You are only eligible for a student debt consolidation if you are in a less than a part-time status.
When you have at least $5,000 to $7,500 loan.
If you are currently in the 'grace period' of paying your loans.
Have a good payment history. That means that you are always punctual when paying your debts.

What are the advantages of student debt consolidation?
If you were to take different student loans, you would probably forget the payment dates of others but with a student loan consolidation, you only have one in your head which is easier to remember.
The biggest advantage of student debt consolidation is that you get to prolong the repayment period of your student loan incase you have difficulties repaying.
Taking a student debt consolidation means that you get to pay off your school loan in small amounts which will help you concentrate on other important issues too.
Life can sometimes come with the unexpected changes and you may need other payment alternatives to pay off your debt. Lucky for you as student consolidations have the following payment methods:-
Income sensitive repayments
Extended repayments
Income contingent repayments
Graduated repayments
Most of the lending companies will come with other benefits to encourage more borrowers. If the loaners do not offer any benefits, I would suggest you look for other options.

The disadvantages of student debt consolidation

Everything has its negative side and so do student loans. Depending on the type of loan you take, the following potential disadvantages may occur:-
Loosing the grace period
Loan repayment extension which means you will repay your loan for a longer period
Payment penalties which may cause you to pay more than you were supposed to repay

In short you'll need to consider a few things like if you are able to meet the monthly amount you are supposed to pay and how much time you will need to repay the loan before you take the loan. Oh, and there are famous companies like Nest Student, Debt Consolidation and Loan approval which are known to be among the best student loan Companies.

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