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Private student loans consolidation will be the most effective way to really reduce your monthly loan payments. By consolidating all your private student loans into one easy loan, it simplifies the process of managing many loans.

By organizing your loans together, the stress of multiple payments will be replaced by one manageable solution. This in turn, effectively reduces your interest rate. Below are 5 reasons why you should go ahead with a private student loans consolidation...

1. Reduced monthly payments: A high percentile of these borrowers can decrease their monthly bills by further extending the repayment time period.

2. Better terms: Usually if you have an improved credit rating, you may negotiate for lower interest rates with the lenders. The borrower also has the right to apply individually or together with a credit-approved co-signer for these private student loan consolidations.

3. Military & Residency deferment program: A grace period of 48 months for medical residents and up to 36 months for active military personnel is applicable by the graduate leverage private student loan consolidation program.

4. Long repayment time period: If the borrower is an undergraduate, he/she may receive up to 25 years for a repayment time period that offers one of the most minimal monthly payments. If the borrower is a graduate student, he may extend the maximum term by 5 additional years, making it a grand total of 30 years.

5. No prepayment fines: Every single payment that is found in excess of the scheduled payments will end up with the principal.

These private loans are not able to, technically-wise, be combined together with the federal student loans. The reason is mainly due to the significantly lower interest rates on the federal loans. Most of these private student loans rarely compete on the price, as it is merely the replacement of one or more loans with another. The biggest advantage is that you would only have to make a single payment every month (as opposed to several).

Most of these interest rates are really dependent on your personal credit value. You have a high probability of obtaining a much lower rate of interest if you have improved your credit score from the time of your initial loan. Lets say you have already happily graduated and landed a great job, providing your credit history is clean, the value of your credit situation would be improved.

Go ahead and try negotiating with the original lender to reduce the interest rate of the loan. The edge you have over the lender is that you can always decide to shift your loans to another lender providing the lower interest rate. Private student loan consolidation is certainly a path which any former (or current) student should strongly consider.

Rob Davis is the owner and administrator of http://www.privatestudentloansconsolidation.info More information on student loans consolidation can be found there.

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