With the number of financial institutions offering student loan services has come the need for student loan debt consolidation services. Consolidation means taking a single student loan and pay off the loans individually. But there are more than one ways to consolidate student loan debts and other is to get a student credit card to consolidate. The credit cards offer benefits but these loans do not have the same perks like the cards. The main benefit you get with the consolidation is that you pay a lower interest rate than you would on your multiple student loans.
One of the student loan services that you may be familiar is the FAFSA loan application. This stands for Free Application for Federal Student Aid. It is a must submit this program if you are applying for any type of student loan. If you want to get a federal student loan, you have to submit this program. This program is available for both graduates and undergraduate students who are applying for federal loans. This is also required if you want to get your Pell grant.
A student loan consolidation is another student loan services that offers a good deal. This means that you can combine all your payments into one and pay them monthly. You also save on the interest rates. Consolidation typically requires that you are going to have a cosigner.
Many times, you have to pay a higher interest rate to consolidate student loans. This is because of the fact that when you consolidate, you are extending the repayment term of your student loan. For instance, if your student loan is due in two years, you will have to pay at least six years with a fixed interest rate. To save some money, you can ask for a grace period, extend your loan repayment term or negotiate a lower interest rate.
Another of the student loan services offered is debt counseling. Most students file for bankruptcy right after graduating. This is because student loans are considered unsecured debts, which carry the risk of losing your property if you cannot make your payments. Student loan services will help you work out a financial plan for yourself or your family. They also work out the details of repayment.
Another student loan services is student loan deferment. A deferment allows you to postpone the payment of your student loan until a later time. Most of the time, this type of deferment comes with a grace period, during which time you won’t have to pay. This works out great if you think that you might be able to squeeze some more money out of your student loan. However, most student loan services will require that you first go through credit counseling.
The last of the student loan services, we will discuss is income contingent repayment. This is a type of plan where you don’t pay your student loan unless you get a job that pays at least a certain percentage of the agreed upon salary. You can earn up to 15% extra by participating in this plan, so if you qualify, you should definitely consider it.
There are many more student loan services you can avail yourself of, but these are the most popular ones. It’s always best to research a student loan service before signing up. Make sure that they are legitimate and reputable, and that they have a good reputation in the industry. Once you are enrolled in school, you won’t have any other choice, so it’s definitely in your best interest to start planning your future by studying now.