Do You Know the Student Loan Consolidation Rule?

During the time you are in college, whether you go for just two years or it takes over a decade for you to complete your education, you will obtain numerous loans from different companies. You might not even recognize that you are doing this, since the student loans are disbursed from the college you are going to, but you are dealing with multiple banks, lending companies, or loan service agencies. The problem will start when you finally do graduate, or when you cease going to school for more than six months, and you need to know the student loan consolidation rule.

Consolidating your student loans is always a good idea. The reason for this is you will probably have many loans (sometimes as many as ten or more), and the monthly minimum amount on each loan will be too much for you to pay if you them all individually. But, by taking advantage of the new student loan consolidation rule, you are able to roll them all into one loan, usually with a much lower interest rate. In addition, you should be able to pay them off quicker than you would a traditional student loan.

You must be careful, however, because there are companies that will attempt to scam you by charging you upfront fees to consolidate your loans. The student loan consolidation rule attempts to bring loan consolidation to everyone, so that you don’t have to pay more money to roll your loans into one, more reasonable amount. This is really good news for people who have more than one student loan (which most of us do), and are making a real attempt at paying it off. Remember, that all student loans must be paid off eventually, and the government does not allow for them to ever be forgiven.


For more information go to http://collegestudentloanblog.com