A lot of single mom students need to get
student loans to complete their education that may result in student loan debt consolidation.
For
student loan help go to http://www.debt.org/student-loan-help/
However, student loans can be a huge financial
burden to you, with high interest rates.
Here’s where a student loan debt consolidation can
help.
Essentially, a student loan debt consolidation gives
you a longer period of time (as long as 30 years) to repay your student loan.
Usually, the interest rates are much lower
since a student loan debt consolidation takes into account all the student
loans you are currently paying.
The interest rate for a student loan debt consolidation is usually fixed and according to federal law, cannot be higher
than 8.25 percent.
Although there are many benefits to having a
student loan debt consolidation, many single mom students are confused since there
are such a wide variety of consolidation loans available from the government or
private sector.
Before applying for any student loan debt consolidation, you must do some research to determine which student
consolidation loan is suitable for you.
Here are some pointers that I researched that
you can take into consideration before taking out a student loan debt consolidation:
- Credit Rating for Student Loan Debt Consolidation
It is important to know your credit score since
it is a major factor in determining whether you get the student consolidation
loan.
If your credit score is over 660, then you
should not have any problems getting a loan.
However, if your credit score is less than 600,
you might want to evaluate ways to improve your credit score first.
Your credit score will also determine the
interest rate you have to pay for your student loan debt consolidation.
The higher the credit score, the lower the
interest rate, thus the more money you will save in the long run.
- Interest Rate for Student Loan Debt Consolidation
Even though you can get a lower interest rate
with a student consolidation loan, the repayment period is usually longer.
In the long run, you actually pay more for your
loans.
It ’s a good thing to research for lenders who
can allow you to upgrade your payment when you can afford it.
For example, you may not be able to repay much
when you are still a student, but once you have a job and have a regular
income, it’s best to repay the loan as soon as possible.
- Income Minus Expenses for Student Loan Debt Consolidation
You need to evaluate your current income minus
your expenses to determine your net income surplus each month.
Calculate your expenses to see if you can
reduce or eliminate any.
Make sure to do your research before taking out
a student loan debt consolidation since you get only one chance at it.
It’s not easy to cancel it once you have signed
the loan papers.
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