Experts Say Now is the Time to Consolidate Loans

[Jun 13, 2007.]

 

Financial experts say that now may be the best time to consolidate educational loans. Here's why: if your loan payments are currently being deferred, you may be able to lock into a better rate now than if you wait to consolidate until after your deferment. Also, with so many household costs rising, now may be an opportune time to get a break on your loan payments. In addition, you may find that loan consolidation will help you to apply for a home mortgage.

You should be aware of the fact that some lenders, including Sallie Mae, permit you to apply to consolidate debts while you're in a grace period and will postpone processing your loans until the grace period is over. You can also apply for a consolidation now and have them process the loan on June 30 or July 1 when the rates may be better.

Still, you should be aware of the fact that you can consolidate your student loans only once. That means you'll need to carefully weigh all the possibilities before making a final decision. In order to begin the process, you'll need to draw up a list of your lenders, your account numbers, the amount of each loan, and the interest rate for each.

Then, contact each lender and find out what kinds of terms and discounts each offers for loan consolidation. Be aware of the fact that some lenders will reduce your interest rate by more than one percent if you make your first 36 payments on time. Or you may be able to obtain a cash rebate if you make your first six payments on time. If you agree to an automatic debit plan, you may be able to get your interest rate reduced by a quarter of a percent.

Fortunately, no additional fees apply to loan consolidation. You will need no collateral and you should not have to undergo a credit check, which makes the process particularly inviting.

Julie Ann Amos
June 13th 2007
More Information:

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• Need To Consolidate Your Debt? - Get A Personal Loan?
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