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Are there any benefits from consolidating school loans other then just having lower monthly payments, and 1 payment to make? you end up paying more in the long run right?

Posted: Fri Mar 10, 2006 2:22 pm Subject:

It's true that consolidation loans are long term loans with low interest rate, but it ensures regular payments and that is very important. Student loan cannot be discharged in bankruptcy. And if you default on a student loan, your lender can garnish your wage without a court order.

Apart from this, if you continue paying installment regularly, your score goes up. I have mentioned to one of your post in another forum that credit scoring model is very much dependent on timely payments. So this can help you to build up good credit too.

However, if one has defaulted over student loan, I will suggest to rehab it first and then consolidate. This is the best option in my opinion. Keep watching forums.

P.S. Check why student loans are consolidated.

Posted: Wed Mar 22, 2006 12:33 pm Subject:

There is one additional benefit to consolidating student loans (aside from the lower monthly payments). When I consolidated my student loans, I locked into a low, FIXED APR. The new fixed APR was slightly higher than the existing variable APR I had at the time (about 1/4 of a percent higher). About 3 months after I consolidated, the rates for the variable interest loans went up (and have continued to do so). In other words, you may be able to get locked in to a low rate. Just make sure you get a loan with no pre-payment penalties, and you can still pay them off early. If you still pay it off in ten years rather than 20, you will not end up paying more in the long run. But you will have the option of making the lower monthly payment if you experience any hardships.

Posted: Mon May 08, 2006 7:34 pm Subject:

Also student loan rates sre due to increase July 1st 2006. There are no fees or charges to consolidate.In addition there is no income or credit check.For a lot of individuals their monthly payments are able to be reduced up tp 54%.Consolidation is everyone's federal right.FREE FEDERAL RIGHT!!!There are also no employment verifications or employment requirements. Locking in your interest rate actually gives you a FIXED rate and allows savings of THOUSANDS of $$$$$.

Posted: Mon May 08, 2006 7:42 pm Subject:

Sallie Mae is automatically consolidating all of my loans before the grace period ends, I used to collect student loans, and seeing it from the inside has had me racking my brain for a plan ever since. I called them months ago to get the details, and the details are that they are purchasing all my loans one by one, consolidating them, and sending my a payment booklet to keep track of payments with.

Posted: Mon May 15, 2006 11:57 am Subject:

I asked for and got a financial hardship deferment for my loans that were supposed to come due this summer. The deferment is for a year and boy was that a relief. I know I will pay more eventually, but it sure was an immediate load off of my mind.