CHASE STUDENT LOAN

You may have to obtain numerous student loans to complete your education. By the time you graduate and get a good job, you may have multiple creditors based on different terms and conditions. Starting off with such a huge financial disadvantage can be a very frustrating experience. The future may be provided for but you must handle your present well. If you are not sure about handling multiple creditors at once, you should opt for consolidation after your graduation.

What is consolidation?

Look at it from this point of view - you hand over of all your school loans to a single lender who repays them. This is done on your behalf and you now have to repay the debt to the individual lender.

You become eligible for consolidation loans as soon as you finish your education. Some consolidation lenders require the borrower to owe a minimum amount to become eligible. However, this is not a universal requirement.

The law is very flexible as far as consolidation is concerned. You can consolidate your loan from any other lender as well. You may want to start by looking at your original lender as you have dealt with them in the past. However, there is a lot of choice available.

Irrespective of whether you opt for new lender or continue with the same one, make it a point to avoid paying any consolidation fee in the very beginning. Charging for consolidation of federal loan is illegal. Debt consolidation is very risky as there are many cheats working in the field. Do not end up increasing your financial worries in a bid to end the same.

There is no compulsion that you should consolidate all your loans in one go. In fact, you can choose to consolidate even a single loan if it helps you save money. However, keep in mind that you cannot consolidate a loan which has already been consolidated.

You can consolidate your debt without any problem as long as ten years has not passed since you started making repayments. Further, it makes sense to consolidate all but one loan so that you have the option of further consolidation when the need arises.