Student Loans

The Debt Ninja Explains The Benefits of Consolidating Your Education Loans

As the cost of education continues to go up, many students are being forced to take out student loans. While most students go for federal loans from the government, there are still many who take out private loans through banks and other lenders.

The private loans are usually based on a student’s credit or their parents if they are too young to have obtained credit. Here are some things the Debt Ninja wants you to know about consolidating your student loans, as well as the benefits in doing so.

The Debt Ninja Outlines The Many Benefits To Consolidating Your Student Loans:

  • The biggest benefit by far is that you only have to make one single monthly payment to your lender. Keep in mind that federal and private loans must be kept separate so if you borrowed from both, then you will still have at least two payments going out (one to each).
  • Along with consolidating your student loans, there is the option of a lower interest rate. Loans taken out for education don’t usually carry a high-interest rate in the first place and are set by the government if they are federal. If you owe money for your education to a private lender, you may be able to get a lower interest rate. Once you have finished your education and obtain a reliable, good paying job, you can establish a credit history, so your loans have the option of carrying a low-interest rate.
  • Student loan consolidation can extend the life of the loan for up to 30 years basically matching the life of your career (or two careers if you decide to change directions later on). As a result you won’t feel burdened by high student loan payments.

Once you are out of school, there are options to pay back student loans called pay-as-you-earn where every time you get paid, you send a portion to your lender. This is similar to the income-based repayment plan where your payment is set in accordance with how much you bring in each pay period.

The Debt Ninja Explains Interest Rates on Student Loan Consolidation

One of the biggest advantages to consolidating federal student loans is that borrowers do not need to have amazing credit scores in order to qualify. Even if their loans are in default, they can apply at any time through LoanConsolidation.ed.gov, and they can get a fixed interest rate. No matter what fluctuations may happen in the market, the consolidated loans will never have an interest rate above 8.25 percent.

However, you can only consolidate private loans with other privately funded loans. Not to mention, once they are consolidated, interest rates can vary according to the market, so the timing of your application is very important. You could potentially save yourself thousands of dollars by applying for private loan consolidation at a time when interest rates are very low.

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Just remember that whatever your situation may entail, you don’t have to take on student loan debt by yourself. The Debt Ninja can swing into action on your behalf and get you the best deal that is right for you.

Just call 1-888-652-4178 for a free consultation The Debt Ninja will connect you to a reputable partner that specializes in student loan debt and is ready to answer all of your questions.