Myth: Consolidation of student loans is simply too complicated to invest time in!
Fact: While it might seem complicated or time consuming, the process of consolidating Federal student education loans is rather simple and the rewards are bountiful. Actually, the process has been made easier than ever through student loan companies who will do all the meet your needs. They will walk you through the entire process as well as help you pick out the repayment package that's best for you personally. Student loan consolidation can transform your loans into 1, simple, manageable repayment package that'll make paying back your student loans easier than imaginable.
Myth: If I have a single lender, I have been told I can't consolidate.
Fact: No longer true! In June, 2006, the actual single lender rule was repealed by Congress and Leader Bush. In fact, a student loan company, OneSimpleLoan, filed case challenging the Department of Education in June 2006. Which effort was a catalyst in overturning the single loan provider law!
As a result, you now have the freedom of preference to consolidate your student loans with anyone you select, regardless of who your original lender is. Make sure you choose a company that has your best interests at heart constantly.
Myth: If I consolidate my loans, I must lengthen the terms of my loan.
Fact: Not true. You are able to, indeed, maintain the exact same terms and monthly repayment amount as your original student education loans. (This is a good idea, since you may have the ability to pay off your consolidated loan even faster! )
Fantasy: As long as I'm in school, I cannot consolidate some of my Federal student loans until I graduate or depart school.
Fact: Not entirely true. If you are within graduate school, you can consolidate your undergraduate school financial loans. Also, if you're in a post-graduate program, such because medical school or law school, you can consolidate your own undergraduate and graduate school loans!
Myth: Even if I've a high interest rate but I've already consolidated prior to, I can't consolidate my student loans again to make the most of a low fixed rate.
Fact: Not true. You can reconsolidate if you either received a new eligible loan because the consolidation or have left an eligible loan from the original consolidation.
Myth: Student Loan Consolidation will hurt my credit score.
Fact: Not true. If anything, federal student loan consolidation might help your credit rating, so that you can have a chance to obtain additional credit for things like a mortgage or perhaps a new car!
When you apply for any form associated with credit, such as a mortgage loan or credit greeting card, lenders will evaluate your credit score as part from the application process. Your credit score takes into account the number of creditors you have along with the balance of outstanding loans. By consolidating your student loans right into a single loan, you can effectively decrease the number of creditors in your credit history, thereby enhancing your overall credit score.
You will be happy to know that at most student loan businesses, there are no credit checks!
Myth: The word "consolidation" is frowned upon within the credit industry.
Fact: Not true. There are two kinds of consolidations in the credit world. One is consumer debt consolidation reduction and the other is a federal student loan loan consolidation. Each is very different from the other. Consumer debt consolidation is usually meant for those who have had trouble paying off their bills and can definitely hurt their relationships with their creditors. Student loan loan consolidation, on the other hand, doesn't hurt anything. No associations are harmed because, by consolidating all your federal student education loans, lenders will be paid in full and one single new loan (a consolidation loan) is going to be issued in its place. In fact, your credit rating might actually improve after you consolidate!
If there's one good thing how the government has given the American student, it's the option of education loan consolidation. If there's anything a student should consider following graduation, it's student loan consolidation.