It is quite easy to get fed up of having to pay an interest every month on your educational loan with no signs of any respites. However, as this is something which I have experienced myself I can tell you that there is a way to get out of this dilemma by having a consolidation done on your student loan.
Know more about the consolidation of a student loan
If you have more than a single student loan and are getting bogged down with paying several installments every month, you could make it easier for yourself by changing this into one single loan and paying just one installment. All your previous loans will be nullified as they will all be consolidated into this one new loan. It is much easier to handle just one loan than several.
The many plus points of consolidating student loans
You get a lot more benefits when you consolidate your student loan. To name a few;
You have to pay a lesser amount towards the loans every month. As all your loans have been merged into one loan, you have to pay a smaller amount every month towards your single loan.
You have only one deadline to think about every month. If there are several loans to pay back and several deadlines to remember you may tend to forget one of them and get into trouble for non repayment of a loan and get a bad credit. This way you only have to remember one deadline every month which is a lot easier.
By merging your loans you can get a low interest rate which is a fixed amount. According to the present day law the payback rates for a merged student loan cannot be more than 8.25%. The national rates for interest are the lowest in the last four decades and this is beneficial for all those who have student loans.
There are no checks for credit cards or fees involved for going ahead with the processing of your loan. When you apply for a merger of your student loans there is no requirement to check your credit card nor is there a rigid method of paying back. This is done to suit your own financial state and can be made comfortable for you.
You can make your payments online or electronically. You have the option of paying back according to your convenience but if you do so electronically you will get a rebate of 0.25% on the loan rate. It is also more convenient as this will be paid regularly from your account and there is no question of your missing out on a payment or forgetting about it.
It may not always be quite clear as to what the criteria for qualifying for a student loan is. However, it has been officially decided that if the students are still within their stipulated grace period, and are as yet studying, they are eligible to have a their student loans merged officially. The loans which are granted by the government towards merger of student loans are at a much better rate than those offered by private organizations. To save money and get a better deal it is advisable to go for a government loan for students.