When is the Best Time to Consolidate Student Loans?

There is no better time than to consolidate student loans. Consolidating or refinancing student loans can basically save borrowers up to 52% on their current loan payments so most people are anxious to consolidate as soon as feasible.

Lots of students take out subsidized & unsubsidized Stafford loans every year of college – a total of 8 different loans, all accruing interest at a variable rate, & all showing as open & unpaid lines of credit on credit reports. Lots of students also take additional loans throughout their college years such as Perkins loans & various industry specific loans, further increasing the benefits of a single low interest loan payment. You can also visit http://www.finlit.com/credit-cards for more details.

By consolidating your loans via FinLit, you’ll take out fixed rate loan to pay off all of the other unpredictable variable rate of interest loans. The repayment period of a consolidated loan is longer, meaning much lower every month payments. For those out of college & beginning careers, lower student loan payments offer a safe way to improve money flow & reduce dependence on credit cards.

Unlike regular student loans, there’s no deadlines for consolidating, although consolidating in the coursework of sure times of the year may finish up in more savings. For those planning ahead, the absolute best time to consolidate is in the coursework of the six month post graduation grace period. Refinancing student loans in the coursework of this grace period means locking in to 0.6% lower rates of interest than are available after the grace period has ended.

The most important time to refinance in general is when you need to increase money flow & reduce or reorganize your every month bills. Making high student loan payments left over to only pay the maximum balance on high interest credit cards doesn’t make financial sense. Through consolidating, the average $350 every month loan payment can be reduced to around $165, freeing up an additional $185 per month to pay down high interest debts.

The loan consolidation method can take several months so it is critical to start the application processes soon after graduation. Don’t fret about sacrificing your grace period by applying early. For federal loan consolidations you can enter your grace period finish date so that the loan won’t start until that date.

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