By college loan consolidation we mean combining many loans such as school loan and college loans together. Consolidating can be a good option, if for no other reason than to simplify ones finances.
Here are five pointers on college loan consolidation are as follows:-
Interest rates-the student can lock the variable rate to a fixed one as such when the interest rates go up he still has to pay interest on flat rates.
For students in school-Consolidating would put a college loan borrower into repayment status, but the student can make payments at a later date until or after graduation by making a deferment request.
Making payment together- the borrower can pool his student debt together so that only one monthly payment is necessary rather than several.
No loss of interest subsidy on subsidized loan-the subsidized and unsubsidized loans are grouped so that the borrower won’t be held responsible for extra interest on subsidized loans.
Repayment options – even if the loans are consolidated the repayment options of various consolidated loans remain open.