Refinancing your college loans into a low interest loan is a great move for anyone. Students should look at this option as soon as possible, every month you put it off is just more money thrown down the drain. There are a few questions that need to be answered before they can make a decision on a loan.
How much do you really need? This is obviously a question that is at the forefront of almost all discussions about college loans. Part of the answer is easy, enough to cover all the expenses you had to go to college such as tuition and books. While you are consolidating it is a good time to borrow enough for your next year of education and in fact this is what many students do. When you are trying to decide how mush to borrow you need to take into account the total cost of going to school. The fees you pay to the school are only part of the total expense to attend school full time. Take your time and try include anything that you will need.
What are the differences? Loans that are obtained through a private lender can generally be used for any purpose while you are in college. These lenders do not care how you use it as long you repay it. Government loans are usually not as flexible in the way it can be spent, but they are easier to qualify for.
What is a consolidation loan? A student consolidation loan is used to consolidate all of a student's loans together so they can be paid in one easy payment to one lender, instead of having many payments to many lenders. Many students get this type of loan toward the end of their college years. This will put you on a better track for starting a career and life after college.
One draw back to a consolidation loan is often the terms are much longer, sometimes as much as 20 years. The trick here is to pay a little extra each month toward the principal. Just a small payment toward the principal each month can make a dramatic difference in the length of time to pay it off. . . CONTINUE