Helping you consolidate your college debt

College Consolidation

College education is the dream of many young men and women. Not all can afford to get educated even though they want to. Those that manage to get into college will have hard time paying the high cost of school tuition fees.

So by the time a student completes his/her college education and is ready to take on the challenges of a job, he/she will have taken at least two or three loans. And when there are multiple loans, managing them becomes a daunting (if not impossible) task because you will need to keep tabs on the following for each loan:

  • Rate of interest
  • Monthly payment date
  • Monthly payment amount

The solution to this problem lies in consolidating the total debt into a single loan.

4 reasons why you should consolidate your student loan

  1. A single payment to be made monthly
  2. A fixed rate of interest. This is calculated based on your existing loans’ rate of interest (weighted average). This results in reduced monthly payment amount (by upto 70%)
  3. Stretching of loan repayment period from the standard 10 up to 30 years depending on your total debt.
  4. Peace of mind from pestering phone calls by creditors and protection of your credit rating

2 Types of College Debt Consolidation

  • Federal consolidation (the most common type)
  • Private consolidation

So, which loan type should you go for? It depends on the type of loans you have taken during the college to pay your school expenses.

All private education loans can be bundled by a single private consolidation loan. Private student loans are sponsored by a private lender.

Federal loans are issued by the Government. A Federal Consolidation Loan allows you to combine all the federal student loans you received to finance your college education into a single loan. For eligibility criterion, rate of interest, repayment period and obtaining the consolidated loan, check this link.

It is not possible to consolidate private and federal loans together.

Caution: Make sure you don’t delay the payment of your monthly consolidated loan amount. Usually a grace period of 15 days exists for late payments after which, you might have to shell out 5% of your monthly amount as late fees.