There’s a price to pay for everything and it applies for promising life changes as well.
To a young adult that translates to college; however, a college life also has its own share of agonies, the biggest one among them being the student loans, which cause a lot of stress as the payback time draws near. These loans also influence considerably the future decisions of a student as well as his/her credit history. Thus, to eliminate the stress factors (read student loan debt burden), a large part of the student community falls for refinancing; those who have already undergone the same have no other option but to go for a student loan consolidation plan.
For a student, a loan usually comes in the form of educational loans; if not a Federal student loan, which is more advantageous; it may mark the beginning of a new era in difficulties. Reasons are ample; while interests on federal loans are tax-deductible, and sometimes doesn’t even require a payback, an educational loan from a private lender accumulates interest that builds up to a hefty amount in no time and doesn’t provide any benefits. Taking all these into account, it’s only student loan consolidation plans that remains as the way out from the vicious circle.
A few rules do apply when it comes to student loan consolidation:
A student loan consolidation scheme doesn’t approve the mixing of private and federal student loans.
A company dealing in student loan consolidation requires the loan amount to equal or exceed a minimum amount.
Out of a plethora of student loan consolidation plans, only the most applicable one is offered.
A few might raise questions regarding the student loan consolidation plans and might also be reluctant to avail one; for them, let it suffice to say that rejecting an offer of student loan consolidation often results in a bad credit report that hampers a considerable number of future prospects including future mortgages, car loans, credit cards and so on. Therefore, if you want to consolidate an existing loan, instead of going to private companies, it is better to go for the FFEL student loan consolidation scheme; this student loan consolidation scheme is considered a better option since it provides enough flexibility regarding the grace periods and very low monthly payments. Another point to be taken into account: the FFEL student loan consolidation scheme also offers a slashed down interest rate from time to time; if one can hook-up one such opportunity, it can save more than what’s expected.