Wednesday, 18 November 2009

Student Loan Consolidation

If you’ve had previous or new student loans then you’ll most likely been receiving a fair share of mail about how you can consolidate your student loans. At first the loan application process will seem difficult particularly if you’ve had more than one loan with a few different lenders. However it’s a simple process and here’s a few tips on what to expect when you decide to consolidate your student loans.

Consolidate Student Loans Step 1

Select a good lender with a well established financial institute. You can tell if they are well established because the have a verity of student loans plans and discount schemes. If you consolidate your student loans with a good lender they will be less likely to sell your loan to another lender in the future.

You should not have to pay a fee or any charges when you consolidate your student loans and there is no need for a credit check because “Federal Student Loans” are guaranteed by the American government.

Step 2

You’ll need to fill out your application form and make sure you have all necessary information about any of your student loans. The application form requires a personal reference so make sure you have one. Last but not leat you’ll have to sign the form but before you do read the fine print (terms & conditions) and ask about the incentives and discounts that come with the loan. Most lenders who consolidate student loans will have a calculator so you know what your repayments will be.

Step 3

Once you’ve sign and posted your consolidate student loan application your new lender will send all your previous lenders a “Loan Verification Certificate” to verify the total amount of your previous student loan. It should take around 30 days to return the loan verification certificates. Interest rates will be finalised along with the disclosure statements.

2 comments:

  1. I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

    Alena

    http://grantsforeducation.info

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  2. Those are great steps to use when a borrower tries to consolidate their student loans. Need to take this as a not for future usage if ever I do decide to use a consolidation also.

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