| Going for loans is not a great stuff to do. But still you | | | | further reduce to 1.0% leading to a novel low of |
| may be in dire need of money for some reason | | | | 1.625%. So you see the workings of student loan |
| sometime, so you get it. This article is reminding you | | | | consolidation and you realize how you actually save a |
| the factors that are indispensable for the | | | | handsome amount of money. |
| consolidation of student loans. | | | | Factor c) before signing up read the fine print. |
| Factor a) in the beginning same rate of interest for all | | | | Many companies will provoke you to sign up with |
| Every federal student loan consolidation rates should | | | | them by offering you a list of borrower's benefits. |
| commence with the rate as instructed by Congress | | | | Say for instance, you will obtain 1%off in case you |
| each year. It is mandatory for all the student loan | | | | can pay off 24 payments on time. It sounds great |
| consolidation companies to offer all an equal federal | | | | but you may afterwards realize (when it is too late) |
| rate. | | | | that in the fine print it can be only accessible in case |
| Factor b) saving money on the benefits | | | | your loan is more than $50,000. I will advise you not |
| In case you are consolidating your loans for the first | | | | to deal with this company since statistically just 17% |
| time, you can save a considerable amount in the | | | | of all graduates have such a high loan debt. |
| discounts and benefits of signing up. | | | | Some companies can offer you better benefits such |
| Standard benefit: for utilizing automatic checking | | | | as 2.5% of your rate but with a grace period of 3 |
| account withdrawal, 0.25% off your rate | | | | days. But what if you don't check your mail or your |
| Standard benefit: for consolidating in your grace | | | | mail gets delayed? You can guess what these |
| period, 0.6% off your repayment rate | | | | accidents may cause you. So considering all these |
| Extra benefit- in case you are having over $20,000 in | | | | facts, always read carefully the fine print before you |
| federal student loans, after your premier 36 | | | | sign up. Thus you can have the benefits. |
| payments on time, 1.0% off. | | | | Factor d) quality customer care |
| Let's take an example- you have $25,000 in federal | | | | The student loan companies are always desperate to |
| Stafford loans and before July 1, 2006, your rate at | | | | ring you up; however, when you are need you may |
| 3.37%. Your rate will fall to 2.875% in case you are | | | | find none at your service. A number of companies |
| still in your grace period which is 6 months before | | | | don't have trained telephone staff that is able to |
| you're paying off begins and which is exclusive for | | | | answer your simple queries. When you contact a |
| graduates. | | | | company, ensure they know about their services, |
| The automatic checking account withdrawal will | | | | rates etc. also check out if your call is attended to |
| diminish again to 2.625%. Moreover, after you have | | | | pretty fast. |
| paid the first 36 payments on time, your rates will | | | | |