Going to college (and of course finishing a degree) had always been the dream of young ambitious people. However, the sad fact is, not all can enter college due to financial constraints. Would that hinder yourself from reaching your dream? On the other hand, would you find a solution to help you get through college? Just keep dreaming because there’s a solution to that simple problem. One way that was designed to help out people who want to have college education is to consolidate student loans debt. Consolidating is combining all your existing student loans into just one new loan. This way, you can simplify all your payments in just one monthly payment. However, remember federal student loans and private student loans cannot be combined because each has a unique term and condition. The “good thing” about loan consolidation is that, instead of the traditional ten years the repayment term could be lengthened to a maximum of thirty years depending on the amount of the loan. Since the monthly payment had been lowered you can have extra money for some other expenses and necessities.
There are different payment schemes you can choose from, try to check what payment term would best suit you. When you decide to combine your loans, you may choose from the:
- equal payment,
- extended payment,
- graduated payment and
- income-sensitive scheme.
Under the equal payment scheme, the borrower pays an equal monthly payment over the terms of the loan. The graduated payment will allow someone to pay just the interest for the first two years and would increase after the said period. The income-sensitive repayment option provides for a payment to be annually adjusted on the borrower’s expected total monthly income from their job and some other sources of income. The last resort is the extended payment which has two more options under it, the extended select 2 and the extended select 5. The former would allow the borrower to repay the loan for up to thirty years having the same conditions and terms with the graduated plan while the former would let the borrower pay for just the interest in the first two years but on the third to the fifth year the repayment will increase that would include a part of the principal.
Nevertheless, where can one get help with her loan consolidation? There are a number of sites that offer such services. Before applying for one, always have a research first what firm or company would meet your needs and standard and above all go for the one which can give you the friendliest interest rate.
Now going to college is a dream come true. When you don’t have any other options trying to consolidate student loans debt is the best thing you can do. A consolidation may be helpful but always remember to apply for the repayment plan that wouldn’t be so hard on your pockets. Now, to anyone who said that going to college is a big burden, consider again.