Do you know the advantages of an AES student loan consolidation?
Consolidating your debts enables you to lock into a fixed interest rate, which may be lower overall compared to effective rate on your existing debts. And, you'll just have one bill to pay for while lowering your monthly payments. You won't have to pay for any application fees or deal with credit checks, plus you will not need a cosigner.
How do I know if I am eligible?
Basically, if you're a recent graduate, a borrower who's already paying back your obligations, or a parent having a PLUS loan, you should qualify. If you're still within school, but attending less than half time you qualify for federal consolidation. Only federally guaranteed student financing could be included in a federal consolidation arrangement. If you've graduated previously six months and are still in your grace time period, you're eligible for a lower interest rate on your own student consolidation.
Borrowers must have at least 1 PHEAA/AES-guaranteed loan to qualify for federal loan consolidation. Any federal education contracts that have been in default and held by another lender are not permitted be included in your federal AES student loan consolidation. If your federal education loans are held by AES, they may be included in your consolidation after they've been rehabilitated.
If you obtained a Federal Consolidation previously, and you have acquired additional federal education financing since that time, or you did not include all eligible loans inside your previous consolidation, you may be eligible for a new AES education loan consolidation.
Parents who borrowed for their child's education will also be eligible for consolidation. An AES student loan consolidation offers parents exactly the same benefits as those enjoyed by student borrowers.
If parents have PLUS loans for several child, they must consolidate them separately. Federal law forbids the consolidation of multiple accounts together, except for the Federal Spousal Consolidation.
Pros and Cons of A Education loan Consolidation
As the old saying goes, "There are 2 sides to every coin". Here are some factors to consider that will assist you make the best decision for your situation.
Pros:
- Reduced monthly obligations
- Just one bill to keep track of
- Just one lender to cope with
- Manage your loans online 24/7.
- No prepayment fees and penalties
- Fixed interest rate
- You do not have to be employed.
- Your credit rating does not affect your own eligibility.
- Any number of loans may be combined
- No minimum balance per federal rules
- As much as 30 years to repay with flexible payment options -- level, graduated and income sensitive.
Cons:
- Longer payment period
- More total interest to pay back
- You might lose some current loan incentives
- Interest rate is calculated since the weighted average of all loans being consolidated, then rounded as much as the nearest 1/8 of a percent
- Loss associated with deferment subsidy for Perkins loans
After you have used:
The consolidation process can take up to 8 days. Until your loan is funded you'll need to continue paying any education loan bills you receive. Repayment begins within 60 days from the loan funding. The loan funds will be sent straight to the creditors. And, there is no grace period.
While a consolidation loan provides you with a longer repayment term and lower monthly payments, remember that the total interest payback over the life of the loan is going to be much higher. Having said that, a Federal AES student loan consolidation does permit you to combine one or more existing student loans into just one new loan. If making your monthly student loan payments is putting a strain in your budget, then consolidation might be the smartest option for you personally.
The consolidation process can take up to 8 days. Until your loan is funded you'll need to continue paying any education loan bills you receive. Repayment begins within 60 days from the loan funding. The loan funds will be sent straight to the creditors. And, there is no grace period.
While a consolidation loan provides you with a longer repayment term and lower monthly payments, remember that the total interest payback over the life of the loan is going to be much higher. Having said that, a Federal AES student loan consolidation does permit you to combine one or more existing student loans into just one new loan. If making your monthly student loan payments is putting a strain in your budget, then consolidation might be the smartest option for you personally.