With the rising education cost, it has become necessary for students to take loans. A student tends to take loans from various sources, which leads to payment of high installments on a monthly basis. A student takes a lot of time to make high interest payments, which affects his focus on academics. In such a case, a comparison of student loan consolidation.What Is Student Loan Consolidation?
Student loan consolidation combines all the student loans into a single loan. As a result, the student is required to pay a single monthly installment at a low interest rate. Also, no extra charges are to be paid, and the combined interest rate is much lower than previous loans.
Since there are various financial institutions providing student loan consolidation comparison is important to get the best deal. The apt time to go in for student consolidation is the grace period as you can get the loan at a low rate. This is necessary as the interest rates provided by different institutions are different. Moreover, the time period to repay the loan is around 10 to 30 years in case of government student consolidation loan.
It is advisable that you makes timely payments as money paid over a long time can ultimately add up to one's cost. The interest rate in the market is presently low. Thus, it is the right time to go in for student loan consolidation.
According to some college analysis data, almost 50% of students at graduate level took student loans of $10,000 in 2006. Previously interest rates were over 6%, which made it difficult for students to carry on with their studies without worrying about their repayment. However, it is currently affordable hovering around 3%. Student loan consolidation has thus become a necessity to carry on with stress free studies.
By Ricky Lim
Check Out the Related Article : Everything You Need to Know About Student Loans
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