Today’s market continues to struggle to gain steady financial footing; this can translate into tough situations for student loan recipients. Despite this fact, it is widely thought that now is the best the time to consolidate loans under one lender, and this is mostly true. Today’s interest rates are significantly lower than they were five or six years ago, and let’s face it – financially strained graduates need all the help they can get. Of course, determining how to get the best student loan consolidation rates is easier said than done. Consider the following tips if you are looking to consolidate your student loans. To find out about Student Loan Consolidation Companies – Click Here
There are several reasons borrowers decide to consolidate their student loans. Most are looking to lower their monthly payments and combine all their loans under one creditor; doing so reduces confusion since the borrower won’t have to remember different due dates or special conditions, and significantly cuts the amount of paperwork of which to keep up. Regardless of the reasons, learning how to get the best student loan consolidation rates is not for the faint of heart; large amounts of time, effort, and preparation are required if a borrower is to truly get the best rate for his situation.
When determining how to get the best student loan consolidation rates, it is important to recognize what you want to achieve via the consolidation process. If the borrower wishes to pay off his loan early, search for consolidations that offer a principal reduction; if he wants to extend his repayment period, look for a consolidation programcentered on interest rate reduction.
Consider less than typical creditors as viable consolidation options. For example, nonprofit lenders tend to have lower operating costs; this translates into better savings for their clients since the company has a smaller overhead to cover. Always make sure that the financial institution you chose has a good reputation and isn’t in financial distress itself.
Many businesses will offer special rates for new customers or lower rates for borrowers that hold more than one account with their company. More often than not, these special attention getting proposals are bona fide offers, but always read the fine print before committing to anything. Some companies will try to dupe borrowers by using an introductory rate that expires in the near future and leaves them with a payment that balloons and is unpredictable.
When deciding how to get the best student loan consolidation rates, don’t forget the companies that offer discounts for the simple things. Sniff around a bit and you will be sure to find that most lenders will knock a few tenths or quarters off the interest rate if you enroll in online statements, have multiple accounts with the same company, or participate in programs such as Upromise. These smaller discounts may not sound like much, but can translate into thousands saved over the life of a borrower’s loan.