| What is student loan consolidation? In layman terms, | | | | years. But similarity is either case is reduction in |
| clubbing of several existing private student loans into | | | | monthly installments to be paid. |
| one single loan at a lower rate of interest is known | | | | Few private consolidators allow borrowers to make |
| as student loan consolidation. Loan consolidation | | | | part payments that too without levying any additional |
| allows students to carefully plan their requirements as | | | | charges. For instance: any bulk payments made during |
| they are no longer liable to make several payments | | | | the loan tenure is charged to the principal amount. |
| to various private financiers. | | | | Moratorium is the additional advantage that can be |
| The burden on your monthly payments is reduced | | | | enjoyed by students pursuing dental and medical |
| with dip in the installment amount mainly due to | | | | courses. These students are allowed to postpone or |
| extended loan tenure. Since the interest rates on | | | | reschedule their repayment tenure by 48 months |
| consolidated loans are much cheaper, your financial | | | | while military personal can delay the same by 36 |
| position tends to improve. Except for loan | | | | months. |
| consolidation, there is no other alternative for cutting | | | | However one important aspect that is to be |
| down on the interest charged. | | | | considered here is that private student loans cannot |
| Student has the option of either availing the loan | | | | be consolidated with federal loans. The time span or |
| individually on his name or go for a co signor with | | | | gap between the completion of your education and |
| clean repayment track record. This would help you | | | | beginning of you repayment is ideal mainly because |
| enjoy loans at a lower rate of interest. | | | | interest rates charged during this period are the least. |
| Loan consolidation period is not constant and varies | | | | Borrower can enjoy private consolidation both at |
| from one student to another depending on the | | | | fixed and fluctuating rates. Hence, it is imperative for |
| course pursued by him/her. For instance: tenor for | | | | you to conduct small market research before availing |
| undergraduates is 25 years and for graduates it is 30 | | | | best from amongst the available ones. |