Below are some of the most frequently
asked questions pertaining to loan consolidations.
What is
loan consolidation and what are the benefits of consolidating?
Loan consolidation is the process
of paying off or “refinancing” several loans with one new loan. Many
students consolidate for convenience. Students that have borrowed
from multiple loan servicers find it much easier to deal with and make
payment to one loan servicer. Often times, consolidation also allows
students to capture a lower fixed interest rate on their loans. The
lower fixed rate reduces both monthly payments and the total repayment
amount.
Who should
I contact regarding consolidation?
Most banks will be willing to
consolidate your student loans. One of the keys to successful consolidation
is understanding the terms and conditions of the new loan and being aware
of the benefits that you stand to gain by consolidating through a particular
lender.
