| Private student loans consolidation will be the most | | | | by 5 additional years, making it a grand total of 30 |
| effective way to really reduce your monthly loan | | | | years. |
| payments. By consolidating all your private student | | | | 5. No prepayment fines: Every single payment that is |
| loans into one easy loan, it simplifies the process of | | | | found in excess of the scheduled payments will end |
| managing many loans. | | | | up with the principal. |
| By organizing your loans together, the stress of | | | | These private loans are not able to, technically-wise, |
| multiple payments will be replaced by one manageable | | | | be combined together with the federal student loans. |
| solution. This in turn, effectively reduces your interest | | | | The reason is mainly due to the significantly lower |
| rate. Below are 5 reasons why you should go ahead | | | | interest rates on the federal loans. Most of these |
| with a private student loans consolidation... | | | | private student loans rarely compete on the price, as |
| 1. Reduced monthly payments: A high percentile of | | | | it is merely the replacement of one or more loans |
| these borrowers can decrease their monthly bills by | | | | with another. The biggest advantage is that you |
| further extending the repayment time period. | | | | would only have to make a single payment every |
| 2. Better terms: Usually if you have an improved | | | | month (as opposed to several). |
| credit rating, you may negotiate for lower interest | | | | Most of these interest rates are really dependent on |
| rates with the lenders. The borrower also has the | | | | your personal credit value. You have a high probability |
| right to apply individually or together with a | | | | of obtaining a much lower rate of interest if you |
| credit-approved co-signer for these private student | | | | have improved your credit score from the time of |
| loan consolidations. | | | | your initial loan. Lets say you have already happily |
| 3. Military & Residency deferment program: A | | | | graduated and landed a great job, providing your |
| grace period of 48 months for medical residents and | | | | credit history is clean, the value of your credit |
| up to 36 months for active military personnel is | | | | situation would be improved. |
| applicable by the graduate leverage private student | | | | Go ahead and try negotiating with the original lender |
| loan consolidation program. | | | | to reduce the interest rate of the loan. The edge |
| 4. Long repayment time period: If the borrower is an | | | | you have over the lender is that you can always |
| undergraduate, he/she may receive up to 25 years | | | | decide to shift your loans to another lender providing |
| for a repayment time period that offers one of the | | | | the lower interest rate. Private student loan |
| most minimal monthly payments. If the borrower is a | | | | consolidation is certainly a path which any former (or |
| graduate student, he may extend the maximum term | | | | current) student should strongly consider. |