If you have just graduated from college, you are probably looking at your student loan bills and wondering if there is anything that you can do to get hose bills a little lower. Luckily for you there are some options that you have to reduce your payments, or delay making those payments. The loan companies just want to get paid back, and will be willing to work with you. One of the ways to lower your payments is to consolidate your loans.
So how do you go about consolidating your student loans? There are a few steps that you are going to want to take to get your student loans consolidated. There are also a few restrictions that you are going to want to keep in mind before you go about getting your consolidation official. Once you have consolidated your loans you cannot reverse the consolidation, so make sure it is something that you want to do.
A consolidation works by allowing you to combine all your federal payments into one payment. You save by cutting the interest that you have to pay. Instead of paying 5 percent interest on three payments, you would only have to pay 5 percent on one payment. All the interest that you are not paying is how your payments are going to be lower. Also you are only paying principal on one payment, which saves you more money.
Remember that your consolidation is only available for federal loans. The way that you are going to go about this is to contact your lender, and ask for a consolidation packet. Fill out the information that they ask for, and then send it in to your lender. Your lender will then take the application and tell you if the loans have been consolidated. It is a simple process, and most federal loans are open to consolidation.
You can consolidate your loans at any time, even if you haven’t graduated. Just keep in mind though that if you did consolidate your loans before graduation that you have to start paying off your loans right away. Remember that you can’t reverse it either, so just wait until graduation if you don’t think you can make the payments right away.
Consolidating your loans is a simple process for the most part. Just contact your lender for a packet, and then send the information into the lending agency. If you have any questions you can contact your college, or your lender for more information. Have fun saving money in a fast and easy process.