You may have consistently paid on your student loans every month but last month you lost your job and although you’ve gone on several interviews, there are still no good prospects. You may be tempted to ignore lenders who call about repayment of loans but this is not a good idea because if your loan goes into default, you could damage your credit history and your debt will go into collections. Another option is to refinance your student loans so that you can pay on them in a manageable way while looking for work or working at a job that pays less than what you want. First you should look over your credit report because with excellent credit you’ll qualify for refinancing at lower interest rates. Pay down some of the outstanding debts you have and if there are mistakes on the credit report, write a letter to the credit bureau stating that you paid certain debts, and provide copies of receipts as proof of the payments. Then wait at least three to four weeks before you refinance the loan so you can see if the mistakes were cleared from the credit report. One way to refinance your loan is through student loan consolidation. It’s important to consolidate private and federal loans separately because if you bundle your private and federal loans into a new loan, you may end up with the loss of benefits you previously had under the federal loan. It’s also important to research at least five to ten lenders and you can do this by getting quotes online or visiting the lenders in person. Read reviews of different banks that offer student loan consolidation. If you’re choosing student loan consolidation, you should research the current interest rates for student loans and compare them to the rates lenders are offering so that you’ll get the best interest rate that’s suitable for your income and budget. Make sure you choose a fixed interest rate for the consolidation loan since fixed rate loans stay the same and it makes repayment easier. Also choose a loan consolidation company that will let you start the repayment after the grace period because this gives you time to seek employment and organize your budget where you’ll set aside money for loan repayment. In conclusion, refinancing your student loan saves you money and it’s less stressful to repay the loans. Are you looking for more information on student loans? Visit http://studentloanconsolidations.org/ today!
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