Loan Consolidation

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What is consolidation of loans?

  • You can always consolidate or unite all your small educational loans into a big loan.
  • The loans that can be consolidated are – PLUS loans, Grad Plus loans, Perkins, Stafford, SLS.
  • Private loans from colleges cannot be consolidated.

How does the consolidation work?

You have to be very careful while considering the consolidation of loans as in some cases consolidation is not beneficial.

Students can be consolidated only once-

So, it is always advisable to wait for the right time.

The rules for the calculation of interest changes from time to time. Therefore, you need to be in touch with the lender to know the exact interest rate.

You should consider the following before you decide to consolidate your loan.

  • What process is followed for the calculation of the interest?
  • Will exclusion of some loans during consolidation help in reducing the interest?
  • Will consolidation in the later period give you a better rate of interest?
  • How many times can you consolidate the loan?
  • Which plan is best suited for you?
  • Can you consolidate private loans?
  • How will the consolidation of subsidized and unsubsidized loans together, affect the interest payment?
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