Definition of Student Loan Debt Consolidation:
Debt consolidation for student loans is the same as any other consolidation loan except in the case of a student debt consolidation loan you are taking all of the debts from your student loans and perhaps other loans as well and putting them together in one loan. The purpose is to save money on payments or make your debts more manageable.
Qualifying for Student Loan Debt Consolidation
Conducting a little bit of research will provide former students with the information they need to determine whether debt consolidation student loans will help them manage the monthly payments on their current loans and reduce the amount they pay in interest. While the qualifications may vary from lender to lender, the following qualifications are general in nature:
- Students can obtain undergraduate private loans from $7,500 to $100,000 or graduate private loans from $7,500 to $150,000
- Student must have graduated from an eligible college, university or other institution of learning within in past five years
- Must have a minimum monthly income of $2,000
- Annual salary must be higher than the amount of the loan
- Must be a citizen of the United States
How Student Debt Consolidation Loans Can Be Advantageous
- When you consolidate your government-insured student loans with a private lender, you no longer owe the government but the bank or other financial institution. If you default on your loan payments the bank cannot seize your tax refunds as the government can.
- You can choose the lender with the most favorable interest rate. Sometimes with government loans you are limited to certain lenders and quite often the interest rate is set by the government.
- If you have negative information on your credit report because of past due student loans, a debt consolidation student loan can help you get rid of your negative credit and get it back on track.
- It may be possible to negotiate a payment plan that will allow you to repay the debt over an extended period of time.
Why Choose Credit-Yogi for Your Student Loans Debt Consolidation?
There are several very good reasons you might want to think of choosing our company to help you find the best student loan debt consolidation companies. Some of the most important things Credit-Yogi can do for you include:
- Help you find the most cost effective debt consolidation for student loans
- Help you understand how loan consolidation for student loans works and how it can be advantageous for you
- Credit-Yogi can help you choose the lender that offers the longest repayment term in order to provide you with the lowest monthly payments
- Help you find a lender that provides additional services that you may find important such as reduced interest for automatic payments or reductions for consecutive on-time payments
Learning How to Consolidate Student Loan Debt
Learning how to consolidate student loan debt can help students better understand how these loans help college graduates reduce their monthly payments. Repayment terms usually average 15, 20 or even 25 years depending on the amount of the loan.
If you continue paying the same interest rate you will substantially increase the cost of your student loan. You want to review consolidation carefully in order to obtain the loan with the lowest overall cost.