Discussing Student Loan Consolidation with Bruce Mesnekoff

1. Finalizing on the type of student loan you need to go for is not the last step in loan processing. While repayment you will again be faced with the choices of consolidation or refinancing. In this article we will be discussing the why, what and how of consolidation with our Student Loan Consolidation Expert Bruce Mesnekoff. So According to Bruce Mesnekoff what is consolidation? Consolidation is used when you have more than one loan; a new loan is taken to pay off the rest. It is applicable only for federal student loan. The interest rate is weighted average of all the loans. This interest rate is kept fixed thereafter. Who Can Consolidate? You need to have entered into repayment time or grace period to consolidate loans. Students in school cannot consolidate loans. Both parents and children can consolidate loans but separately. All the loans should be under the name of one borrower for consolidation. You also need to have a good repayment history to become eligible for it. Unfortunately private loans cannot be consolidated. Why to Consolidate? Consolidation is a way to keep out of default which surely helps in long run. It reduces the number of payments to just one payment per month so it makes your life hassle free. You want to go for fixed interest rate over variable interest rates. Through consolidation FFEL loans become eligible for Public Service Loan Forgiveness. The monthly payment might decrease since the payment time increases resulting into you paying more interest. According to Bruce Mesnekoff, also there is no consolidation fees involved. It helps in flexible repayment options which is income driven. How to Consolidate? As per Bruce Mesnekoff Consolidation can either be done online or through mail. If you want to apply online, login to studentloans.gov and complete the application form. For mail, application will have to be printed, and mailed after completion. Disadvantages of Consolidation The main disadvantage is the paying more money at the end of the term since payment time will increase and monthly payments will reduce. Another potential disadvantage could be losing current lender’s borrower benefits. Also you might not be eligible for certain military benefits. There could be some repayment penalties. If you go for consolidation earlier only in your grace period then you will lose the grace period. Thus before deciding Our Student Loan Consolidation Expert Who is an Author of Various Book like The ULTIMATE GUIDE TO STUDENT LOANS and CEO of The Student Loan Help Center , a thorough

2. investigation is must since consolidation is not for everybody. Considering all benefits and potential risks is important and also that whether it helps you or not to fulfill your financial goals. For More Information Contact Bruce Mesnekoff on LinkedIn