After reviving the increased tuition fees and lower limits of federal student loans it is a common scenarios where students after securing various grants, scholarships and federal student loans still require additional financial assistance to support their education. This is the reason why most of the student loans decide to borrow multiple student loans to complete their education. Getting multiple student loans with a clear credit record is not difficult however; the problems start arising when the repayment schedule of these loans starts once students passes out from the college.
Managing different loans having various interest rates and repayment terms is not an easy job often forcing person to mix up their schedule. In addition, the worries of repayment harass students if they find themselves in critical financial hardship to repay the borrowed amount of student loans. The best way to get relief from all these worries is to apply for debt consolidation loans due to which you get an opportunity to combine all the borrowed loans. One of the prime benefits you receive by consolidating your loans is you just have to pay one monthly installment to only one lender at fixed interest rate and that too with a longer repayment period.
Fixed rate calculated for debt consolidation loans is actually the weighted average interest rate of all the consolidated loans. Always understand that the final interest rate is rounded up to the nearest 1/8 of a percent leaving you with either lower or higher interest rate. In addition, the repayment period is ideally for 10 to 30 years depending on the total loan amount however, this also helps you to save a lot of money compared to the multiple installments of multiple loans.
Different type of student loans like Stafford, Plus, SLS, NSL, FISL, HEAL, Perkins, Guaranteed Student Loans, Health Professional Student Loans and Direct Loans are compatible to be consolidated as one loan. On the other hand, if you have any private student loans then you will have to consult lender if they have any provisions to consolidate the loan amount as most of the private student loans provider also provide a facility of private consolidation loans. Some of the lenders that provide such facility include Student Loan Network, Chase, Wells Fargo and NextStudent.
Anyone with student loans including students, parents having educational loans on their name can opt for debt consolidation loans. However, parents and their children cannot merge their individual student loans in one master loan amount and they will have to apply for such consolidation on separate terms. The rules for the consolidation of loans states that multiple student loans borrowed by the same person can be consolidated under his name and the same rules apply for the married personals also giving them an opportunity to consolidate their loans separately.
Therefore, it becomes necessary for you if you are applying for the multiple student loans to check the terms and conditions before accepting the proposal as it plays an important role in securing your future. In addition you never know how, where and what amount you will be earning in future leaving you with an option to act smartly and decide wisely in the present.