Consolidation enables you to pool all of your loans together in one easy to manage loan and make just a single monthly payment.
Through an extension of the loan repayment period, consolidation can significantly help by lowering the amounts of your monthly payment installments.
With multiple loans you may have variable interest rates, consolidating this into one debt will lock in one interest rate. Another significant advantage of consolidation is that it is one way to get you out of default and back into the current repayment plan.
From a report released by College Access and Success, more than 75% of college seniors who graduated in the year 2011, had a total loan debt of about $26,600, the amount varies depending on what type of school you went to (public or private) and how much you had to take out based on what you were able to pay during your study years. Having multiple loans spread out over different borrowers can add to the anxiety of overwhelming student debt.
Consolidating your student loans to pay off debt
The good news is Student Loan Direct makes the process of consolidating your student debt into a single payment extremely easy! By doing this, you can effectively lower your monthly payments as early as your next installment is due. Sometimes this can extend the total amount of payments but oftentimes Student Loan Direct can get into new alternative repayment plans that won’t affect the lifetime debt payment numbers.
One of the biggest questions we get asked is about credit when consolidating student loan debt. Ultimately a lower monthly repayment amount can reduce your total financial burden each month and enable you to make timely payments.
Essentially making on-time payments is crucial, and if your student debt burden is overwhelming and making it impossible to function financially, consolidating with Student Loan Direct’s help could be the answer!