After finishing college, when you feel exhilarated about starting a bright new chapter in your life, a nagging thought about repaying all those loans you took to complete your education may upset you. Giving out regular and timely payments may become a Herculean task, and the late fees and penalties may weigh you down. Searching for the best college loan consolidation option will bale you out from your financial worries.
The best college consolidation loans should reduce the amount of your monthly payment by increasing the duration of the repayment period beyond the 10-year standard repayment plan. This duration can be increased up to a very manageable thirty years depending on the sum you have taken as a loan. On one hand, the lower monthly payment results in an easier repayment plan, but you may end up paying more money in the long run due to accumulated interest.
In the U.S. there are various loans available to students, broadly divided into Federal student loans and private loans. Generally the easiest to get, the Federal loans are given through the Department of Education. Stafford, military and ROTC are few of the popular Federal loan programs. Leading bankers and lending firms like Citibank give private loans. These charge a higher rate of interest.
Having a good credit record over 660 will get you the best student loan consolidation interest rates. In fact, inquiring about your credit scores should be the first thing you do before you apply for a loan consolidation.
In the Internet-driven world it is easy for people to find and compare the best available student loan consolidation plans. A little time spent in research will go a long way in saving large amounts in interest and other fees charged by the various loan vendors.