In today’s world where both undergraduate and postgraduate courses are becoming very expensive, most students have no other option but to go in for student loans in their names. Hence, it is not very surprising to find that upon completion of their graduation or higher education; students find that they have a number of loans outstanding against their name. Therefore, consolidating the loans and bringing them under one umbrella is very important and desirable. This will help them to manage their debts better. Let us therefore try and find out some ways and means by which such consolidation can be made.
Lack Of Information
While student loans might have been around for a long period, when it comes to consolidation, there is no doubt that it is a relatively new concept. Therefore not many students are aware of the benefits and also the challenges and risk that it offers. There are a number of ways by which loan consolidation can be done. The first starting point is to have the right kind of information. Towards this objective, visiting the right sources of information could help in many ways. They will help the students to enhance and broaden their knowledge base and make the next move.
Federal Student Loans
The most common way forward would be to opt for federal student loans. This is offered by the Department of Education, and the program is called Direct Consolidation Loan. It allows students who have borrowed various federal student loans to have them consolidated under one single account. There is no doubt that managing multiple loans, remembering due dates, servicing interests, and other such tasks could be quite cumbersome and difficult. Hence, such consolidation could certainly make thing easier. It well and truly goes a long way in helping students to take direct control of the various student loans that they have.
It Could Help Save Interest Cost
Apart from offering students the option of managing a single loan, it also might help them to save on interest cost. This is because the new Direct Consolidation Loan will take the weighted average of all the existing interest and then arrive at a new interest. This is many cases might reduce interest rates though it may not always happen. Those students who are keen on saving interest costs on student loans may have to opt for a private student loan, and this is often known as SoFi. There is one more thing that should be borne in mind. Direct Consolidation is not available for private students’ loan and for such loans SoFi is the best option. Visiting sites like studentloandiary.com could certainly help students get the right information.