It is important to think the school loan consolidation during the grace period, which is the 6 months time after the graduation, because that is honestly the only time, when the consolidation can be done. And the same loans can be consolidated only once.

1. The Reduction In The Monthly Payments.

Many graduates start to think the repayment of the student loans for the first time after they have graduated, before that the topic has felt very theoretical. The most important benefit is that the school loan consolidation brings a big savings to the monthly repayments.

Despite of the fact, that graduates are seeking for immediate savings, the consolidation has also the long term effects. You have to think the future situations, when you will meet sudden changes in the incomes or the in living costs and when you have done the school loan consolidation once, you cannot anymore reduce the payments.

2. The Fixed Interest Rate.

Those graduates, who do the federal loan consolidations, will have the fixed interest rates for the remaining life time of their loans. This is both good and bad. The loan will not bring any sad surprises, but if the fixed rate will be a high one, it will mean an overpayment.

3. The Consolidation Simplifies Your Payments.

The situation, when a graduate has several loans and several lenders makes the whole management a difficult task. The consolidation brings all the loans together into one loan, which will have only one lender. This is a practical solution and makes the borrower much relaxed.

4. Two Examples Of The Savings.

Let us assume, that a borrower has a loan of $ 10.000 with 15 years repayment time. If he refinance the loan and gets a 25 years payment time, he will save over $ 230 every year. With the $ 100.000 loan the savings will be over $ 2400 every year. The improved credit score will most probably bring lower interest rates, which will mean added savings.

5. You Do Not Have To Be Employed.

The only two requirements are that you have graduated and you will start the consolidation application process withing the grace period, i.e. in 6 months after the graduation. If you have both the private and the federal loans, you cannot consolidate them into one big loan, but you must consolidate them separately.

The federal student loan consolidation can include Federal Stafford Loan Consolidation, Plus Loan Consolidation, Direct Loan Consolidation, Perkins Loans, HEAL Loans and all Federal FFELP and Direct Loans, which you have taken to pay for your education.

Concerning the repayment alternatives, a borrower has four options. The standard payments means the fixed monthly payments, the graduated payments mean the gradually increasing payments, the income sensitive payments mean payments, which are tied to the amount of your income and the extended payments mean that you have to pay over some minimum amount in a certain time.

Author Bio: Juhani Tontti, B.Sc., Marketing. When you have a need to consolidate Levitra student loans, think carefully the long term effects, because the school loan consolidation has both immediate and long term influences. Visit: student loan consolidation

Category: Finance/Credit/Debt Consolidation
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