To get an education is expensive and it is normal for students to have one or quite a few student loans. This means they may be making payments to multiple companies after graduation; so many students opt instead for student loan consolidation. When you are considering opting for student loan consolidation there is something important to consider.
If you are planning to go back to school again in the near future, you must realize that you are only allowed to take student loan consolidation once. So if you planning to go back to school soon there may are new loans that you would wish to add to the consolidation.
The reason for this is because your loans are automatically deferred until you once again stop going to school. When you decide to do student loan consolidation there are several options you should consider before you decide which one is the best for your situation.
Weigh The Different Options
Defaulting on your student loans will have an impact on your credit worthiness, so do not wait until you have defaulted to start proceedings for student loan consolidation. When you find yourself unable to make your loan payments or you find that you cannot afford to make the entire payment you can ask for deferment. This means you deafer payment for up to 2 years and it allows you to protect your credit worthiness. Another option for student loan consolidation is called forbearance.
This is used in times of unemployment or financial hardship and can be used in 6 months increments. You can also negotiate to make smaller payments so as to continue paying your loans to safeguard your credit. Whatever student loan consolidation option you choose, make sure that you get the full forbearance or determent option. Also, make sure you deal only with a reputable company that will not sell your loan to a third party. When you go for student loan consolidation you must negotiate the best student loan consolidation rates compared to the rates you already have.
This is why you must get payments that fit into your current budget and not your possible future budget so that you make life easier for the present. Student loan consolidation is meant to help you cope with the debt of all your student loans.
When you do a consolidation you no longer have to deal with multiple companies. You will only deal with one company and have one payment to deal with. You no longer have the frustrations of dealing with separate payments due on separate dates. You can also get a payment that will normally be lower than if you make separate payments to different companies.