One of the most important things to consider in choosing a lender is to compare student loan consolidation rates. Most students who’ve graduated find it wise to consolidate student loans upon graduation. The next crucial step would have to be choosing the right lender from which to apply a student loan consolidation. Nowadays, there are many lenders that offer you different loan consolidation programs, each with various requirements, interest rates, and etc.
This article will give you some points to consider in selecting a lender. Although it is very important for you to compare student loan consolidation rates, you should also take into account some details in choosing a loan consolidation program and a lender.
Comparing School Loan Consolidation Rates
You could cut your student loan payments by up to 50% or more if you consolidate your student loans. This could mean big savings and thousands of dollars on the life of your loan. You could also be able to lock down a low and fixed interest rate for your monthly payments.
Ask about the rates. When choosing a lender, you should ask them about the rates that they can give you. Usually, the interest rate on a consolidation loan is calculated by getting the weighted average of the interest rates (as of the date the application is received by the lender) on all the loans you are consolidating, rounded up to the nearest one-eighth of a percent.
Other Things to Consider
Of course, there are other things to look into. It will also be wise if you ask your lender to figure out your monthly payments and how long it would take for you to fully pay the total loan balance. Also, you should try asking about incentives, like additional breaks on interest if you make your payments through automatic debits each month or if you consistently make on-time payments for a specific period of time.
Lenders may ask for different requirements. There are some lenders that will require you to have a co-signor, some optional, and some do not require this at all. In lending companies that post this as optional, having a co-signer with a good credit background will let you enjoy some benefits like lower interest rates.
There are some lenders who will ask for collateral, while there are others who don’t. Some lenders also set a minimum balance policy, and the amount varies from one lender to another.
The easy application process is also one thing to look for in a lender. Now, there are some lenders that provide online applications that can be accomplished in just a matter of minutes. The process is quick and all information released is kept confidential. After 15 minutes of submission, you will be immediately called by a customer service representative on the contact number that you provided.
In the end, it’s also about service. If you’re comfortable and satisfied with your current lender’s service, then you can just check with them to see if they offer loan consolidation. Either that, or you can check your school’s financial aid offices for a list of preferred lenders who have provided the tried-and-true working experience to former students.
These are just some things to consider. So if you are choosing a lender, compare student loan consolidation rates and other details.