Students who graduate from the colleges and universities not only receive the necessary education but also student loans debts. The average size such educational credits are about $ 36,000. And that is not all. Many other students and university graduates have debts for much larger sums. Today, education loans range from $ 60,000 to $ 180,000.
Given acknowledgment to the ongoing rather sluggish economic growth, not at all surprising that a huge number of students could not fulfill all their credit obligations. At the same time, often the problem lies not in the loan itself, or the low earnings of former students, but in the terms of loan agreements, according to which they have to pay their education loan. Just to get higher education or subsequent postgraduate studies, a student can become at once dependent on several lenders.
If you are in such a situation and have problems with accounts management for educational loans, then it’s maybe a time to simply merge all these loans.
Combine student loans and get one incredible low-interest rate
Interest rates for all types of loans, including student loans, change every year. They are established by the Congress and based on financial markets the results. And now let’s look at it with a concrete example. Suppose you spent four years on getting a higher education, after which another six years in the postgraduate school. This can lead to the fact that you will pay the loan at different interest rates. And in this case, it can be done at ten different rates. Depending on the time of receiving a loan, there is a great chance that many of them have a much higher interest rate than the current one.
If you can combine all of your student loans, then it is likely to be, that one interest rate may be lower than what you are currently paying for a few credits. As a result, you can save a significant amount. For example, you took a loan of $ 100,000 for a period of up to 10 years, and an interest rate is 5%. The amount of interest paid on the loan should be about $ 27,000. Now imagine that you get one new loan and combine it with other student loans at an interest rate of 4%. According to these new credit conditions, you will need to pay only $ 21,500 for the same 10 years. See, what a huge difference?
Only one monthly payment
If you owe several creditors at once, then, as a rule, all payments must be made at different times. And your salary comes only once a month! This means that you will always need to keep payment dates in your memory and carefully plan your budget. This situation makes it difficult to create stability or automatic payments.
Combine all your student loans and get a great opportunity to build a stable budget and convenient payment process. Leave in the past numerous payments for loans, and instead pay only once a month, and in automatic mode!
Great opportunity to improve your credit history
A good credit history is not only important in relations with banks. These data are used by law enforcement agencies, insurance companies, and most of the employers. Bad credit history is a sign of financial immaturity. Such a person will not be trusted to work with money, and insurers are unlikely to offer a lower rate.
Anyone can come to the debt because of late payment. You just forgot to do it at the right time and this is no wonder why. It’s very difficult to manage up to 10 different scholarship loans. As a result, the money to the credit account came very late, and it became overdue.
After that, first what you need to do: try to clarify your credit history. Perhaps the bank did not inform the credit bureau about the delay. However, if you have a mark about late payments, later this will definitely strongly affect your credit rating. In order to avoid this and never again fall into such a situation, it is necessary to simply get all your school and student loans into one more simple, and convenient. In this way, you will not only protect yourself from unpleasant situations but will eventually improve your credit history. All information about your payments on this single loan will be displayed in the credit bureaus.
Get rid of the stress
If you have a falling out with a friend, quit your job with a scandal or your leg is broken, this is a temporary stress. Your body has the resources to survive, hold out and live happily well after. With regard to the debt stress, it looks like it does not think to end. It may last like forever, exhausting the man and gradually driving him into hopelessness.
Kelly McGonagall, a psychologist at Stanford University, argues that the debts not only spoil the overall tone and mood but also hit the health. Feelings and stress due to debts are combined with a sense of hopelessness that you cannot do anything about it, at least right now. Studies confirm the big harm to the student’s health. Students, who have taken several credits for their education, most often go to the doctor.
Student loans consolidation can help improve the financial situation. In addition, it helps to feel that they are well versed in the current situation. The sense of control relieves stress and helps to restore decision-making skills.
What you can expect from education loan consolidation
There are many very good reasons for combining all of your student and school loans. The main ones are as follows:
- You get an attractive and stable interest rate that will cover all your other loans at once. This interest rate may turn out to be much lower than all of those that you currently pay.
- A new loan will not only reduce your monthly payments but also reduce them to one-month convenient payment.
- A consolidated loan will help improve your credit history and over time will create a new, more attractive credit opportunities.
Loan consolidation also reduces stress, depression and anxiety disorders
We specialize in loans consolidation. If you want to get such a loan that will help not only to combine several expensive loans into one convenient and much cheaper, then do not delay your decision for a long time but rather contact our experts immediately.