Nov 28 2008
10 Loan Consolidation Questions All Students Should Pose!
Unfortunately, no college is in a position to offer help when you are faced with the challenge of choosing a suitable loan consolidation company. This is something you’ll have to deal with yourself, but by asking a few questions, you’ll have laid a solid foundation on which to build your success.
Ask yourself these 10 questions to start:
1 – What are the reasons for you wanting to consolidate your loans? Of course, the primary reason is so that you are able to reduce your monthly repayments. Additionally, it carries with it, the convenience of only have one loan to be responsible for.
2 – At what stage should I apply for this consolidated loan? The simple answer here is that you should do so if you find yourself to be under considerable stress due to your obligation to multiple loans.
3 – Do I qualify for loan consolidation? The ideal time to apply for a consolidation loan, is after graduation at which point your loans are afforded a period of grace.
4 – Are there any incentives? Some financial institutions do offer special bonuses or some other form of incentive but it is imperative that you get all related details in writing. Also, don’t be afraid to ask question you feel are relevant to your situation.
5 – Does this lender have experience with student loan consolidation? Choosing one of the reputable student loan consolidation companies is essential to your peace of mind.
6 – Will my loan be serviced? You really need to be on your guard here because there some lenders who are in fact, only brokers. In this case, they’ll simply sell your loan on at a later stage for a profit. Make sure you determine this before putting your signature on that dotted line.
7 What loan do I get? Remember, if you’re consolidating federal student loans, you will loose any federal government benefits you enjoy, if you choose to consolidate with a loan other than a federal student consolidation loan.
8 – What are the loan terms and conditions? Specific terms and conditions may vary from one lender to the next so most importantly, don’t even consider signing anything unless you’re 100% certain of the terms.
9 – What available features are there? Here again, the features offered will differ to some extent between lenders but in general, you can expect features such as online account management facilities and also various online applications. If uncertain, ask before agreeing to anything.
10 – What will happen if I miss payments? Ideally you should do everything in your power to prevent this but of course one can never predict the future. If you find yourself in financial difficulty, contact your lender immediately. Also, before agreeing to the loan conditions, discuss such a scenario with the lender, if only for your own peace of mind.