No matter which college you attend, you can be sure of one thing and that is, they won’t be able to teach you just how you should go about the process of consolidating student loans.
Ask yourself these 10 questions to start:
1 - What are the reasons for you wanting to consolidate your loans? Of course, the primary reason is so that you are able to reduce your monthly repayments. Additionally, it carries with it, the convenience of only have one loan to be responsible for.
2 - When should you consolidate loans? If you feel you are no longer able to afford the all the individual repayments, or if you’re struggling to deal with the financial stress from having so many obligations then it be advisable to consolidate.
3 - Am I eligible for student loan consolidation? Once you have graduated from college, your student loans will enter a grace period. This is generally when you will apply for your consolidation loan.
4 - Are there any incentives? Some financial institutions do offer special bonuses or some other form of incentive but it is imperative that you get all related details in writing. Also, don’t be afraid to ask question you feel are relevant to your situation.
5 - Does this lender have experience with student loan consolidation? Choosing one of the reputable student loan consolidation companies is essential to your peace of mind.
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 loan do I get? Remember, if you’re consolidating federal student loans, you will loose any federal government benefits you enjoy, if you choose to consolidate with a loan other than a federal student consolidation loan.
8 - What are the terms of my student loan consolidation? Don’t agree to or sign anything you don’t understand. You are borrowing a boatload of money and will be repaying it for years to come. Make sure you know the details.
9 - What features does the lender offer? Some lenders offer features to make loan repayment easier and more convenient, like online applications and account access.
10 - What should I do if I can’t pay my loan? Of course you don’t want this to happen, but make sure you know the consequences just in case it does.
