10 Loan Consolidation Questions All Students Must Ask!
Unfortunately, no college is in a position to offer help when you are faced with the challenge of choosing a suitable loan consolidation company. This is something you'll have to deal with yourself, but by asking a few questions, you'll have laid a solid foundation on which to build your success.
Ask yourself these 10 questions to start:
1 - Why do you want to consolidate your student loans? The most common reasons for student loan consolidation are (1) to reduce the dollar amount of monthly payments, and (2) to ease repayment by turning many loans into one.
2 - When is the best time to consolidate your loans? When you either need lower monthly payments or are stressed by the multiple monthly payments of your current loans.
3 - Do I qualify for loan consolidation? The ideal time to apply for a consolidation loan, is after graduation at which point your loans are afforded a period of grace.
4 - Is there any incentive for me to go ahead with an application? There most certainly is. In most cases, companies have various schemes in place in order to attract clients as well as offering their clients special bonuses in return for their loyalty.
5 - Does the company have a proven track record in the field of student loan consolidation? It simply cannot be stressed enough just how important it is that you choose a reputable company with a solid track record.
6 - Will this lender be servicing my loan? Some "lenders" are really brokers that get you to consolidate your student loans with them only to sell them off to a lender you did not choose. Be aware of this and ask about it before signing any loan agreement.
7 - What kind of loan must I get? - Exercise caution when it comes to this because if your current student loans are federal loans, only federal consolidation loans will be recognized. If you opt for a consolidation loan which is not federal, you'll loose all federal benefits you may be getting.
8 - What are the loan terms and conditions? Specific terms and conditions may vary from one lender to the next so most importantly, don't even consider signing anything unless you're 100% certain of the terms.
9 - What available features are there? Here again, the features offered will differ to some extent between lenders but in general, you can expect features such as online account management facilities and also various online applications. If uncertain, ask before agreeing to anything.
10 - What will happen if I miss payments? Ideally you should do everything in your power to prevent this but of course one can never predict the future. If you find yourself in financial difficulty, contact your lender immediately. Also, before agreeing to the loan conditions, discuss such a scenario with the lender, if only for your own peace of mind.
Ask yourself these 10 questions to start:
1 - Why do you want to consolidate your student loans? The most common reasons for student loan consolidation are (1) to reduce the dollar amount of monthly payments, and (2) to ease repayment by turning many loans into one.
2 - When is the best time to consolidate your loans? When you either need lower monthly payments or are stressed by the multiple monthly payments of your current loans.
3 - Do I qualify for loan consolidation? The ideal time to apply for a consolidation loan, is after graduation at which point your loans are afforded a period of grace.
4 - Is there any incentive for me to go ahead with an application? There most certainly is. In most cases, companies have various schemes in place in order to attract clients as well as offering their clients special bonuses in return for their loyalty.
5 - Does the company have a proven track record in the field of student loan consolidation? It simply cannot be stressed enough just how important it is that you choose a reputable company with a solid track record.
6 - Will this lender be servicing my loan? Some "lenders" are really brokers that get you to consolidate your student loans with them only to sell them off to a lender you did not choose. Be aware of this and ask about it before signing any loan agreement.
7 - What kind of loan must I get? - Exercise caution when it comes to this because if your current student loans are federal loans, only federal consolidation loans will be recognized. If you opt for a consolidation loan which is not federal, you'll loose all federal benefits you may be getting.
8 - What are the loan terms and conditions? Specific terms and conditions may vary from one lender to the next so most importantly, don't even consider signing anything unless you're 100% certain of the terms.
9 - What available features are there? Here again, the features offered will differ to some extent between lenders but in general, you can expect features such as online account management facilities and also various online applications. If uncertain, ask before agreeing to anything.
10 - What will happen if I miss payments? Ideally you should do everything in your power to prevent this but of course one can never predict the future. If you find yourself in financial difficulty, contact your lender immediately. Also, before agreeing to the loan conditions, discuss such a scenario with the lender, if only for your own peace of mind.
About the Author:
Are personal student loans a good method to pay for college? Discover how it works and whether student loans with bad credit may possibly be a better choice for you @ http://www.studentloan-i.com
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