Figuring out the best way to pay off student loans can sound like the first step into adult life; daunting and with no idea where to begin. But you have more control than you think to find the best option for you. There are many options that can be personalized to fit your needs and finding the best repayment option helps release the pressure of what seems like the never-ending scariness of debt.
Student loan consolidation could be the solution to get the repayment options that mean less stress and less money out of your pocket. You can even consolidate Parent Plus loans if you have one. These are three reasons why you should consider consolidating your student loans:
Simplify Your Monthly Payments
Are you tired of keeping track of multiple debts and their deadlines? Student loan consolidation brings all your loans into one single loan and thus, one monthly repayment. Being able to find a repayment schedule that is simple and fits your needs is one of the most compelling reasons for consolidating your student loans. The fact that you can keep track of managing only one debt could be enough for you to sign up. It is particularly helpful for those with less discipline to manage multiple credit accounts. It will also relieve the stress of mounting debts.
Lower Interest Rates
Consolidation can often give you the chance to renegotiate the interest rate on your loan. The government may offer you federal loan consolidation to bring together your federal loans with one fixed, weighted-average interest rate. There are various criteria you must fulfill to be eligible, but if you are uncertain about what is around the corner, the fixed rate can be enough to give you peace of mind.
However, this does not guarantee a lower interest rate, unlike a private student loan. If you are confident in your credit score, the best private student loan lenders will help you find a rate on your consolidated loan based on your financial situation and history with debt. In the long run, either option can mean less money out of your pocket.
Take Responsibility Into Your Own Hands
If you have already started to compare private student loan offerings, you would have heard the age-old debate of consolidation vs refinance. Refinancing student loans means taking out another loan to pay off your existing ones. Does that sound crazy? This option offers the most flexibility in finding a repayment option that works for you, but it does require a high level of discipline. If you are ready to take full charge of your student debt, it could be time to take the plunge with refinancing student loans.
At the end of the day, finding new private student loans means matching the best private student loan options with your personal situation. Whether its consolidation or refinance, there is no one-size-fits-all solution, so be sure to compare private loan offerings and lenders for the one that is best for you. If this does not induct you into adulthood, what will?