Student Loan Consolidation Review

Below is a student loan consolidation review. When your main objective is to lower your monthly payment and combine all your student loans into one loan then student loan consolidation is the way to go.

There are two types of student loan consolidation programs:

Federal student loan consolidation program
Private student loan consolidation program.
There are some differences between federal student loan consolidation program and private student loan consolidation program. Take a look.
There is a 6 per cent discount during grace period in federal student loan consolidation program, which is not the case in private student loan consolidation program.
You can go for a fixed interest rate in federal student loan consolidation program whereas in private student loan consolidation program you only have a choice of variable interest rate.
Some of the benefits of student loan consolidation are mentioned below:
In an ideal scenario, student loan consolidation program minimizes your present monthly payment in half.
You do not need to pay any sort of fee when availing these consolidation programs.
There is no prepayment penalty associated with these programs. In case if you are interested in repaying the loan amount much before the deadline, you can do it without being charged with any penalty.
When you opt for student loan consolidation program, your credit rating improves. But for that to happen, it is of utmost importance that you pay all your dues on time.
You only need to deal with one lender instead of five or six lenders with student loan consolidation program. This not only gives you peace of mind but also makes your task of managing finances lot easier.
If your financial condition is not up to the mark at present, you can request for a grace period. More often, you will be given a grace period of around six months. In this period, you do not have to give any payment to the lender.
Your monthly payments are designed after taking a look at your financial condition. This in turn makes sure that you will not face any problem in repaying the loan amount.