Your Guide to Bennington Student Loan Debt Consolidation
If you have student loans, you probably receive debt consolidation offers several times a week. Recent graduates may also have heard about Bennington student loan debt consolidation from financial aid counselors. If you have several student loans, then consolidation may be a great way to simplify your payments and possibly save money. Review the pros and cons of debt consolidation, then decide for yourself. Request a Free Student Loan Consolidation Quote from the Bills.com family of lenders.
Why Bennington Student Loan Debt Consolidation is a Good Idea
Student loan consolidation is most beneficial for Stafford loans disbursed between July 1, 1998 and June 30, 2006 that have variable interest rates. If you have fixed rate loans issued after that date, you may not be able to reduce the rate much by consolidating, but it will still simplify your payments. The federal student loan rate resets each July 1 and the new rate is announced in the spring. If you have federal loans, you can consolidate all your loans to lock-in a fixed rate and extend your repayment term.
Most loan companies also offer a small interest rate reduction for automatic payments and an additional reduction after 24-36 on-time payments. Although you must apply by June 30 to qualify for this year's rate, most lenders will postpone the final consolidation until your repayment grace period expires. The grace period is usually 6-9 months.
Reasons Not to Pursue Bennington Student Loan Debt Consolidation
If your loans are mostly private, you may not be able to consolidate them. If you are able to consolidate, you may not receive a fixed-rate for the consolidated loan. You also might not qualify if your loan balances total less than $10,000, but some consolidation companies will accept balances as low as $3,500. Consolidation may also not be worth the trouble if your loans will be paid off soon.
Some companies offer to consolidate loans for you and your spouse into one loan, but you should avoid this. Federal student loans are forgiven if the student dies, unless the loan is consolidated with other loans, such as a spouse's student loans or as part of a home equity or personal loan. If you consolidate your loans into your home loan and can't make the payments, you could lose your house.
Finally, if you have a fixed-rate loan issued after July 1, 2006, and have not yet graduated, then you have no reason to consolidate your loans now while they are in deferral.
Qualifying for Bennington Student Loan Debt Consolidation
You can consolidate your student loans after graduation, at the end of each year or when you attend school less than half-time. Visit the federal student aid website to find a list of student loan consolidators or check with your current student lender. Compare the offers, and then complete the consolidation application with the company of your choice. You can only consolidate once unless you add additional student loans, so choose carefully. If you return to school or graduate school, you should be able to consolidate all of your loans after completing your degree.
Once you compare the potential benefits and risks of consolidation, you should have a clear idea of whether you should apply for Bennington student loan debt consolidation. Start your lender search today to qualify for the best rates and most favorable terms.
Bennington, VT (05201)
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