Student Loan Consolidation vs. Refinancing
Learn the difference between student loan consolidation and student loan refinancing to find out which option is best for you.
Let’s face it: college is expensive. According to one recent survey, 7 out of 10 college graduates from public and non-profit colleges had an average of $30,100 in student loans. As if student loan debt wasn’t stressful enough, many college graduates also have multiple student loan payments to multiple servicers at a variety of interest rates. If you find yourself in this situation, don’t worry, we can help! Not only can we help Rockland County residents finance upcoming education expenses, we can also help consolidate existing student loans.
What Is Student Loan Consolidation?
Consolidating your existing student loans allows you to combine multiple education loans into one loan which results in a single monthly payment instead of multiple payments. In addition, consolidating your student loans means you will pay one interest rate which is a weighted average of the prior loans.
Benefits Of Student Loan Consolidation
Typical student loan repayment terms range from 5 to 20 years. By extending the repayment term, you can significantly reduce the amount of money you’re required to pay each month. If you are on a tight budget, this can give you some extra breathing room. Another benefit of student loan consolidation is the ability to remove a co-signer from the loan.
Beware Of Student Loan Consolidation Scams
College graduates burdened by student loan debt beware: don’t be fooled by student debt relief scams. Common signs include charging you an upfront fee to begin the student loan consolidation process, offering you a service with high fees attached to it, or being told that a service can offer full debt relief.
Before you begin the student loan consolidation process, make sure you are choosing a reputable company to assist you or choose a credit union like Palisades CU. Why? Credit unions are not-for-profit financial institutions, which means you will likely receive a better interest rate when compared to banks.
Have questions or need additional information before you get started? We’re here to help! Contact us or visit one of our three convenient branches. If you’re ready to get started apply online now for quick approval!
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