Majority of student loan lenders offer some of the best loans you could find. The interest is usually fairly low, and the loans are pretty simple to get. To their credit, student loan lenders are some of the fairest in the country.
Student Loan Lenders:
- Allow you to go into forbearance when your financial situation becomes unmanageable;
- They will work out fair payment plans with you; and
- Their interest rates are manageable if you're not experiencing financial difficulty
Those student loans, on the other hand, will not go away no matter what. Even if you are unable to obtain a good job as a result of the education they provided, you must repay your student debts. They'll continue to accrue interest even if they're in forbearance. Student loan refinancing and debt consolidation organizations, on the other hand, are finally giving borrowers new hope.
By asking the appropriate questions, you may find the right student loan option for your debt consolidation. We have put together some questions you should ask when considering the right student loan program.
First and foremost, you should inquire as to what you would need to perform in order to be qualified for loan forgiveness. You can get some or all of your student debt forgiven if you work in specific industries, such as education, public service, or the military. Consult your agent to determine if a vocation you're interested in falls into one of these categories, and if so, you may be eligible for forgiveness. A government program is also available.
Do they accept payments on a biweekly basis? It's extremely uncommon that you'll come across a company that does not accept automatic bill payment. In addition, most lenders will give you a.25 percent interest rate reduction if you sign up for automated bill pay. However, you will not be able to make bi-weekly payments with everyone. Some companies will allow you set up automatic payments once a month and accept a check or money order at any time during the month. However, keep in mind the following:
- Bi-weekly payments equal out to about 26 more payments a year,
- You're paying the same amount of money, but making more frequent payments, so you pay less interest and you're shaving off years of repayment time
What are your financial goals in the long run? Before you sign up with a company, be sure you understand exactly what you'll be paying each month and for how long. You may decide that you don't want to pay off your student loan debt for another ten years, or that your payments are too large to manage due to upcoming personal commitments.
Remember that interest rates can add up quickly, so listen to your agent's advice but don't let him or her pick your answer for you. Before you choose the best option for you, make sure you consider all of your options for changing payment plans, refinancing, and pre-paying.
Are you able to refinance your home? If you've gained a better job or have a more manageable budget, many firms may allow you to refinance rather than consolidate. Refinancing your loans can save you over $11,000, so it's the best option for many people if they qualify.
If you find you are unable to refinance your loans due to job loss, an injury or any other reason, call Fong Law Group at (626) 289-8299 for a free consolidation. You can depend on Fong Law Group to provide clear information on bankruptcy law, each step you must complete, and how to best approach and manage life after bankruptcy.