Frequently Asked Questions About Student Loan Consolidation
Understanding student loans and the consolidation process can be confusing. Find answers to some of the most commonly asked questions here, and take the first step to finding the best student loan consolidation company for you:
I have federal and private student loans. Can I still consolidate?
It depends. Most federal loans (such as Perkins or PLUS loans) have regulations that affect consolidation. Private loans, which come from banks or other private entities, might not. If you have both federal and private loans, you might need to consolidate them separately - but you could end up consolidating both types with just one lender. Be sure to go over your options with your prospective consolidators.
What are the benefits of consolidating my student loans?
The most frequently mentioned benefit of student loan consolidation is the convenience of just one payment a month. So many students graduate with multiple loans, and balancing that many lenders within your budget can be a challenge. Other benefits include the possibility of getting a more flexible or customized repayment plan, potentially lower interest rates, and the convenience of only working with just one lender for the remainder of your loan.
I'm still in school. Can I consolidate my loans now?
If you're an undergraduate, not just yet. You can consolidate your loans once you've graduated and entered the repayment process. If you're a graduate student and are repaying loans from your undergraduate years, you can consider consolidation now. But you also should look into deferment or forbearance options first before moving to consolidation immediately.
How do I select a loan company?
Consolidating your loans is a serious process, so be sure to look over proposals from multiple lenders. Prioritize your needs - whether it's a fast repayment term or a lower monthly payment - and choose the lender that can best help you achieve your goals. Read over proposals thoroughly and be sure to ask questions before agreeing to any consolidation program.
How do I know if the program is right for me?
Every student is different, and as a result so too are the programs. Your present financial and employment status could play a large role in selecting a loan program. If you are employed and want to pay off your loans fast, you might want to consider a standard 10-year repayment plan. But if your finances are tight and you need some flexibility, perhaps an extended repayment plan might work best. Be sure to discuss your options when you look over your loan proposals.
Am I able to consolidate my loans?
If you are a college graduate and a United States citizen, you are likely eligible to consolidate your loans. Depending on the loan consolidator, you might need a certain loan balance - such as at least $7,500 - to be able to consolidate. You also should be in good standing with your existing lenders.
Is my information secure?
Absolutely! BestLoanConsolidationCompany.com uses the best encryption software available. Remember that the only information you provide on this Web site is basic information such as your name and address. You won't need to provide specific financial information and your sensitive personal data until you reach the application stage with specific loan consolidators.
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