Student Loans Consolidation – 5 Comanies & Pros and Cons

September 1, 2011

Student Loans Consolidation

Student Loans Consolidation

If you have been contemplating student loans consolidation, there are many companies out there that are offering consolidation services that you can use. If you are unfamiliar with what student loans consolidation is, it is grouping all of the loans you have into one single monthly payment, which is accomplished by you consolidation company essentially purchasing your loans from your lenders so now you just pay the consolidator, although one student loan can be consolidated as well and still enjoy the benefits that come with consolidation.

These programs offer a lower monthly payment as well as a fixed interest rate by repayment period of your loan. Below will be 5 different resources you can use tha offer student loans consolidation as well as information on each as well as the pros and cons that come with consolidating student loans.

5 Student Loans Conslidation Companies

  1. Next Student - This company offers private student loans consolidation as well as federal loans. With this option you can receive a payment term of over 30 years, they have low introductory rates, no repayment penalties as well a there is not collateral required for service.
  2. ScholarPoint.com – WIth this student loans consolidation company, they offer no fees for their service, a mximum rate of interest being at 8.25 which is often way lower, fixed interest rates as well as if you choose to pay more, you will not be penalized. They also offer 4 different repayment plans that offer different scales of pay that suit your income best. They as well offer private and federal student loan consolidation services.
  3. US Department Of Education – This option focuses on just federal loan consolidation, and offers up to 30 years to repay your student debt.
  4. Loan Approval Direct – Student loans consolidation through Loan Approval Direct offer many benefits like consolidation of up to 125,000 dollars of debt, interest rates at as low as 3 percent, and collateral is not a requirement.
  5. Debt Consolidation.com – This is another great resource for student loans consolidation and their online application process is very simple. With this option you will know how much you will save within minutes after applying.

As you may be able to tell, the abvoe student loans consolidation companies are both federal and private. This was done this way because you must choose a federal consolidation company for all your federal loans and the same with private loans, they must be with a private student loans consolidation company, although most companies offer the services of both.

The best thing to do if you are considering student loans consoidation is to submit application for multiple companies as you can compare their rates and service and choose the best one.

Student Loans Consolidation Overall Overview

Student loan consoidation offers advantages and disadvantages. Just so you know what to expect, here are some of the pros and cons.

PROS

  1. Lower interest rates that are fixed and they will never change. This is great as interest rates are at an all time which means even when they go up, you will still have the low interest rate.
  2. Student loans consolidation offers one payment instead of mutliple payments as well as one phone number to call for questions.
  3. You can consolidate loans with your spouse giving you both just one lump payment.

CONS

  1. Longer payment terms mean you will pay more in intererst. Although you can still consolidate and enjoy the benefits and still pay your student loan debt off faster with a higher payment.
  2. Requirement is sometime tough, as you must have a certain amount of debt as well as loans you must have came from a certain group of lenders.
  3. It is overall all an okay way of saving, there are better ways like student loan forgiveness that can offer low payments as well as get a lot of you debt wiped away.
  4. Other benefits you had with your other lenders do not carry over with the studnent loans consolidation company.

 

 

 

 

 

Category: Student Loan Consolidation

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