Whether you are a college graduate and/or have more than one student loan you are probably looking for some ways to save some money. You can save money by consolidating private student loans at a fixed rate.
Why Consolidate Private Student Loans at a Fixed Rate?
There are so many benefits to consolidating your student loans. Consolidating your student loans simply means that you will have another lender combine all of your student loans into one, an easy and manageable loan where you can pay just one payment instead of trying to keep track of your various loans and payments and balances. Once you graduate from college you will be busy in your new career and new life. Managing various student loans will not be something you will want to add to your daily schedule.
Here Are Some Of The Benefits Of Consolidating Your Private Student Loans
Lower Payments: By consolidating your private student loans you will get some financial relief by getting your monthly payments lowered.
One Payment: Instead of having to keep track of your various student loans and your various payments, you will have only one to worry about, as well as one easy monthly payment.
Lower Fixed Interest Rate: When you consolidate your student loans you will reap the benefits of a lower and fixed interest rate, which will lower your long term and overall payments to your lender.
Credit Rating: You can actually help better your credit rating by consolidating your student loans into one loan that you pay to only one lender. The more outstanding debts you have on your credit report the worse it will look to lenders and creditors. By creating just one loan out of two or more loans that are outstanding you will increase your credit rating.
Is It Possible To Consolidate Private Student Loans At A Fixed Rate?
Yes! Not only is it possible to consolidate your private student loans, but you should also consolidate your student loans!
By consolidating your private student loans you will be consolidating any student loans that are non-federal. You can include other debts in this private student loan consolidation, such as any credit card debt you may have as long as the debt is education-related in some way. The only downside to consolidating your private student loans is that you may not want to combine any federal student loans with your private non-federal student loan consolidation. This is because your federal student loans usually have a lower interest rate than your private student loans. By consolidating all of your loans, private and federal, you could lose out on some savings you’re your interest rates. You can consolidate your federal and private student loans, but you should do them separately to save a bunch of money in the long run.
With this in mind, you should consolidate any federal student loans you have first, and then consolidate your private student loans. You will save money by doing this, lower your interest rates, have only one or two lower payments to make each month, and create a better credit report and score for you.
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