why are student loans consolidated?
Why are student loans consolidated?
With the rise in the living expenses, many people are going through the financial troubles in every sphere of life.
Due to the rising costs in higher education, families are stressed having no options left. This results in borrowing money from friends, families and even from money lenders to meet the educational costs.
Student debt consolidation programs have been designed to meet the needs of such students so that they don't have to take financial pressure while building their career.
Student debts are consolidated because they provide the following benefits to the borrowers:
Fixed Interest rate - Consolidation program maintains a lower fixed rate of interest, thus making the repayment process easier. If the borrower consolidates the student loan while being in the school, a difference of 0.6 percentage points can be utilized.
Only One Payment Each Month â€“ consolidation program will allow only one lender with only one monthly bill. This makes the repayment process easier for the borrower instead of managing their debt with different lenders.
Flexible repayment options â€“ there are various plans tailored according to the needs of the borrowers. . These plans are designed to be flexible to meet the different and changing needs of borrowers. Borrowers will also be able to switch their repayment plans in the consolidation program at any time.
Grace period- if a consolidation is done while in the school, consolidation program offers grace period before the repayment begins.