Saturday 1 August 2009

The Best Student Loans Consolidation Rate Offe,r

Going through college is one of the most expensive 'necessities' in a person's life. There are lots of young people who dream of making their way to college. Sometimes no matter how much we wanted to pursue a university education we just can't on account of some financial constraints. However, who said money could hinder you from getting that dream of yours? Now you are just few clicks away from your dreams. Student loans had always been the hope of those people who assumed that they can't have the education they needed. Nevertheless, what if you have a lot of loans and wouldn't know what to do to manage all of them? Loans consolidation is the solution. Loan consolidation is combining a person's all existing student loans into just one new and simple one. One may have more than five student loans until he finishes college. However, remember federal student loans and private student loans cannot be combined into one loan because each has unique terms and conditions. Here are the reasons why consolidation is recommended: It can cut down your existing monthly payment by as much as half percent. There are no application fees neither needed nor credit checks. You would get penalized for prepayments. A student borrower is allowed of an interest-only payment scheme. With the information mentioned above, you may not be considering of combining your student loans. If you have decided try to check the student loans consolidation rate to aid you choose the kind of consolidation would meet your needs.

A private consolidation loan can cut down a student's monthly payment by as much as 45 in the first year by merging all the private student debt into just one manageable loan. Some consolidating companies offer a first year introductory interest rate which is equal to a month LIBOR which at present is 5.02 plus 2.50. This rate depends on the student borrower's credit or his co-signer if there is. Consequently, that means that you could get as low as 7.52 monthly interest rate. One could also pay for the interest only for the first two years. With this one can keep up with the accumulated value of the loan and lessens the monthly payment. On your loan closing the first year, the interest rate changes to LIBOR plus a 6 to 6.50 which like mentioned earlier would depend on the borrower's credit history and the co-signer's. A .25 rate reduction will be given for the auto debit. At present, the annual percentage rate which is based on a thirty-year repayment term would be at 9.58 to 10.90.

As for federal loans consolidation, the rate is based on the weighted average of the student loan interest rate. Students who have Stafford loans get a 6.8 rate but a new rate will soon be released giving a rate of only 6. The following would be the new interest loan rates for these various consolidated federal loans: the usual rate is 8.02 but is now down to 5.01.

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