Senin, 13 Oktober 2014
Consolidation of Private Student Loans
It's very common for students to have to take out one or more loans to finance their further education and anyone who isn't eligible for Government assistance must look to private student loans. Unfortunately, once that education is complete and they have a job, many find that the interest rates and periods of repayment really can't be met from their salary. Consolidation of private student loans is one good way around this dilemma because it's easier to deal with just one debt rather than several and the problem of compounding interest on the original loans is also solved. Here's how to go about the consolidation of private student loans, if you find yourself in that position. First of all you need to make a spreadsheet of all your loans with interest rates and monthly payments. Add them all up so that you know what your monthly outgoings on loans should be. Secondly, check out the small print of each loan to make sure that you know what the penalties are for repaying early. Add this information to your spreadsheet. Thirdly, clean up your credit rating. Get a credit status report and check it carefully. If there are errors, for example unpaid balances which are actually paid or late payments which weren't late, get the proof together and contact the credit agency to get the record set straight. Your credit rating will have a bearing on whether or not you are able to consolidate your loans and the interest rate you pay for the new loan. Now, decide how much you can afford to pay each month and star looking for consolidation loans. Don't forget to find out the interest rates, the repayment period, the monthly payment and the charges for late or early payment. You will probably need to look at at least ten potential loans or companies to get a good cross-section of what's available. Make another spread sheet with the loan information and put all the loans in order of preference. Contact your first choice lender and make sure that they know about your good credit score. Find out whether they will offer you a loan and at what rate, etc. If your first choice are prepared to offer you a loan, just try the next couple on your list to see if you can better that offer. Do some calculations to see whether you can afford to consolidate all your loans and decide which ones. Choose your favoured lender and make sure that the terms and conditions are as you understood them to be. Consolidation of private student loans isn't that hard but you need to be methodical and take your time; don't just rush into the first consolidation loan that you find.