Understanding the Student Loan Consolidation Rule

| January 2, 2012

Paying for student loans sometimes turn into a hardship, especially for those students who have recently graduated and have not been able to find jobs. Many of them are paying for their university loans and on the side for their Master Degree loans and when you add them up, they turn out to be a fortune. Student loan consolidation is the answer to all your problems. Certain rules and regulations apply but in general everybody can consolidate his or her student loans.

The first rule to be able to consolidate student loans is to have finished school completely. You must not only have finished school but you should not be planning to study anymore by requesting another student loan. You must also know that the process to get this done is easy and simple and not only that but it is free. Financial institutions or banks cannot charge you a dime to consolidate your student loans, if they do or they ask you for an advance or working money find someone else to do it for you. The process is free.

In order to consolidate a student loan it must be in your name. If the loan is under your wife’s name or your parents name only they can consolidated. If you have several loans that you pay but they are not all under your name you can only consolidate whatever is under your name. Your parents or wife will have to consolidate the others. It does not matter if the loans were taken for your schooling and if you have been paying them all the time. Those loans are not yours, they are theirs.

You have the possibility to do this with any lender you chose. There are no restrictions about which you may close the deal with. This allows students to find the most competitive rates and the best loan structures for them to work with. Many financial institutions specialize in student loans so it would be wise to go to them first. If you do not find what you want, be patient, the loan you need is out there somewhere, just keep looking.

Consolidated loans are structured so that you may pay less than what you are actually paying for your student loans. Financial institutions offer you lower interest rates and longer payment periods so that you’re monthly payment can sometimes be drastically reduced allowing you to start working on your profession without having to carry all that monthly payment you are carrying now. Every federal student loan can be consolidated, if someone tells you your loans cannot be, and then find someone else because it is the intent of the federal government to help new professionals to get rid of their debts fast by consolidating their student loans.

When you are ready to consolidate your student loans, be patient, shop around, once the documents are signed you cannot turn back. Ask for a few quotes and read the small print carefully. Go with the best offer, it does not necessarily have to be the lowest monthly payment, it must be the one offering you the best conditions in general.

Category: Student Loan

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