Phoenix, AZ -- (SBWIRE) -- 07/17/2013 -- From mountains of homework to multiple billing statements, college graduates everywhere are walking away from college into significant debt. Credit-Yogi would like to inform graduates on how to simplify their student loan repayments with student loan debt consolidation:
- What is Consolidation?
- Watch out for Fraud
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Borrowers must satisfy certain characteristics to qualify for student loan debt consolidation. They must be out of school or enrolled at less than part time. The minimum requirement varies but generally needs to be at least 5,000$. Repayments must already be in progress, and payment history needs to be in good standing, safely away from default.
What is Consolidation?
Borrowers consolidate loans by taking out one huge loan to pay off the others, usually to obtain different terms and rates. Many graduates or people in the progress of paying off their student loans may require financial leniency.
Loans are divided with the private and federal loan categories. Because they cannot be consolidated together, different loan services are required for each.
There are many ways a borrower can capitalize on student loan consolidation. The most striking benefit for some is the way their bill payments can be simplified. Several loans can be consolidated together, narrowing payments and monthly statements into one. Consolidation will extend loan terms, lower monthly payments, and may provide lower interest rates. Borrowers with private loans can fix the interest rates on their loans.
Graduates with pre-established credit may not find the interest rates they’re looking for at first, but experts assure that there are lenders out there who will work with young, inexperienced borrowers and offer interest rate cuts if they establish credit and begin in good standing.
Those who find their current payment plan a hindrance may benefit from different kinds of repayment plans offered by lenders. These may include extended terms, term contingent payments or rates (such as graduated repayment), or income contingent payments.
There are various lenders out there who offer additional benefits. Experts assure borrowers that they can safely hold out on finding a lender that will look at their payment history and offer benefits for compliance.
Watch out for Fraud
Experts warn borrowers to beware of fraudulent lenders that offer drastic federal loan interest reductions. The standard practice for federal consolidation lenders is to weight the average of the interest rates of all the student debt consolidation loans together and round the number up to the nearest one eighth percent. They may also require out of pocket upfront payment fees, which differ from the standard loan check withdrawal.
Credit Yogi promises to connect borrowers with only quality lenders. Their team of informed financial experts will meet the needs of borrowers by recommending only preferred lenders with optimal benefits. Call 866-964-9644 for a free consultation