Tag: Student Loan Consolidation

Are you getting ready to graduate? Well, along with college graduation comes the much-dreaded student loan repayment. If you were lucky enough to qualify for subsidized student loans, the government has been paying the interest on your student loans through school; if you had to take out unsubsidized student loans, your interest has been accruing. Either way, six months after graduation your grace period ends and it is time for you to begin repaying your student loans.

NextStudent, a leading Phoenix-based education funding company, recommends that you start shopping around for student loan consolidation loans as soon as possible. Student loan consolidation is a great way to manage your monthly student loan payments. Not only will you lock into one loan at one fixed interest rate, it also is possible to reduce monthly payments by up to 60 percent and eliminate the hassle of dealing with multiple payments to different lenders.

Do Your Research before Selecting a Student Loan Consolidation Lender

Frequently, college financial aid offices offer students a list of Preferred Lenders for all of their financial needs, from Stafford loans to student loan consolidation loans. However, students are not required to work with the lenders on those lists and instead should shop for a company that best suits their needs.

Just like every student is different, every lending company has its own character, ethical standards and quality controls. Borrowers should be selective and choose their lender carefully, making sure to consider and compare the reputation and integrity of the company, level of customer service provided, and the individual student loan consolidation incentives offered.

NextStudents LOCKED Discount

The federal government sets the base interest rate on all student loans, including student loan consolidation. The only true differences the consolidation loan lenders provide are the incentives offered by each company. For example, in an effort to extend significant savings to borrowers, NextStudent offers a 1 percent LOCKED interest rate discount after 36 consecutive on-time payments, which borrowers retain for the life of their student loan, while other lenders may revoke their benefits for a single late payment. NextStudent also is committed to providing outstanding customer service and the best incentives in the industry.

Some of NextStudents Federal Consolidation Loan Benefit Packages:

Package #1
1 percent LOCKED interest rate reduction after 36 on-time payments
.25 percent interest rate discount for Auto-Debit payments

Package #2
2 percent interest rate reduction after 36 on-time payments (not locked)
.25 percent interest rate discount for Auto-Debit payments

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at NextStudent.com.

Necessity to apply for a loan arises when a person is in short of funds. For this loan amount issued to a person, firm issuing loan will calculate interest that need to be paid every month. Difference between loan amount and getting money for interest is that generally loan amount comes with less interest rate than the money that is bought just for interest. Also in loan, some amount will be reduced from the capital each and every month. While getting money for interest, only interest will be accounted every month. It may seem to a person that loan is the best policy for arranging money. But actual fact is that getting loan is a difficult process. A property or asset need to be mortgaged to the firm issuing loan. Although it may not seem to be a mortgage, it is treated as a surety for the loan amount. Tenure for payment of interest amount for student loan may be somewhere between 5 to 30 years depending on the amount bought as loan. Banks are offering many attractive schemes for getting loan in between the period that one loan is active. It is so because nobody can know the turn of events in life. Money requirement may arise any time. In such a case, there are options for arranging another loan.

This new loan will also come with interests that need to be paid monthly. In case when a person finds it difficult to manage with various loans, all pending loans can be combined together as a single loan. In this process of debt consolidation, not all the loans can be consolidated. There are certain rules and regulations available. However, there is less or no restriction available for combining student loans. Student Loan Consolidation aims to combine all the individual loans into a single loan. This loan amount, when combined may seem to be high. But the interest that this process of debt consolidation yields will be lesser than paying the loan individually. After combining loans, the resultant loan amount will be of constant interest rate that needs to be paid till the entire loan amount is over. Personal loans can also be consolidated with that of student loan. But there may not be a guarantee that they can be clubbed. It depends mainly on the discipline a person maintained in the payment of interest of previous loan.