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is there a catch to student loan consolidation?

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6 Responses to "is there a catch to student loan consolidation?"

  1. Jeona P says:
    Students who are looking for a bad credit student loan should pick three schools they are most interested in, talk to the admissions office, and ask what is needed to apply in their school.A bad creditdepending on whether you are a homeowner or not. The rate of interest to be paid on unsecured bad credit student loans is higher than that on secured bad credit student loans. This is because the secured bad credit student loans are backed by your home as a security.

  2. recentgradtrish says:
    Student loan consolidation is the best thing you can do if you have more than one loan. It will not only decrease your interest rates, but it will also make it easier for you to pay each month. Instead of writing multiple checks, you just need to write one.

    You can read all about student loan consolidation here:
    http://www.studentfinancedomain.com/student_loans/college_student_loan_consolidation.aspx

    Hope this helps!

  3. burt says:
    A loan is a loan. I found interesting information about your answer, college loans, scholarships, college grants & partime works here.http://all-student-loan-consolidation.blogspot.com/2007/07/college-loan-consolidation.htmlGood luck!
  4. curious george says:
    I could be wrong, but I’m pretty sure that you end up paying more in the long run if you consolidate. Here’s what happens:

    Let’s say you have 2 different loans:
    loan 1: $10,000 @ 10%
    loan 2: $10,000 @ 20%

    In this scenario you have an average interest rate of 15%

    If you consolidate, they add a very small percentage and you’ll end up paying something like 15.05%. (I just made up the .05.. the actual number will vary).

    So why consolidate? If you consolidate, you get one big loan from one lender and you pay off the other loans. The benefit from consolidations is that lenders are generally willing to lower your monthly payments and also provide you with incentives/discounts to attract you to them. Oh, and you generally can lock in a fixed rate.

    Lower monthly payments is usually something every college grad wants because many of us don’t have paying jobs right off the bat, so lowering the monthly payments is a huge plus. The downside is that if you’re paying less per month, it’ll take you longer to pay your debt… and that translates to you paying WAY more in the long run.

    If you don’t mind dealing with multiple lenders, you already have a fixed interest rate, and you can handle the monthly payments then you don’t need to consolidate.

    If you decide that you want to consolidate, shop around. All of the lenders are offering you the EXACT same product so you have the advantage. The only way they can compete with each other is to offer you better terms so if you shop around you’ll be more likely to find the best deal. Also, tell them that you’re shopping around so that they offer you everything possible.

    Here are some sites I’d recommend:
    http://salliemae.com – large student lender/consolidator
    http://financialaid.com – student loans and consolidations
    http://finfo.com – get up to four competing offers from banks, no obligation

    Good luck!

  5. Mike C says:
    Hi There! I Got This For Your… As Always, Its Always Better That You Get The Info Firsthand. So Check It Out Yourself, Im Pretty Sure You’ll Discover Something…

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