Thorough Student Loan Checklist
Here is a little ditty of a student loan checklist for ya. Hope this helps you in your payment planning, and debt consolidation process.
GO….
Think about the affect of a consolidation on future payment options, cancellation options, and other borrower benefits such as interest rate discounts or principal rebates, which can significantly reduce the cost of repaying your loans.
You might lose some dis-charge advantages or deferment benefits if you include certain types of loans in your Consolidation Loan—Federal Perkins Loans, for example. To find out more about the impact consolidating might have on deferment and cancellation benefits, contact the holder of your loan.
If you decide consolidation is right for you, contact your lender to begin the consolidation process.
If already in re-payment, make sure to continue making payments on your loans until consolidation is completed.
/If you need immediate payment relief, request deferment or forbearance.
Determine monthly payment and total interest costs for Consolidation Loan and compare to cost of repaying loans without consolidation.
/For help in calculating monthly payments, contact your lender or loan servicer.
Take stock of your student loans.
/For information on your student loans, review your loan documents, and contact your lender or loan servicer.
If you are not in r-epayment status yet, estimate your monthly non-consolidated loan payment based on the current interest rate and your loan balance. You can get payment amounts by calling your lender or loan servicer.
Determine whether your monthly payment exceeds the percentage of your income to be allocated to student loan payment. This percentage should be based on a realistic budget.
/If payment exceeds monthly allocation, reevaluate budget and assess income situation.
Consider deferment or forbearance option for short-term payment relief needs.
/If debt relief needs are long term, consider consolidation.
If still in the grace period, consider consolidating approximately two months before the end of the grace period to allow enough time to have your Consolidation Loan processed before the grace period expires, yet not so early that you lose too much of your grace period if you have a FFEL Consolidation Loan.
For FFEL consolidation loans, if you consolidate during the grace period, you give up whatever portion of your grace period remains. You retain all of your grace period, however, if you have a Direct Consolidation Loan.) Some FFEL lenders offer to hold disbursement of Consolidation Loans until the end of the grace period to enable borrowers to minimize their interest rate and maximize their grace period.
Remember that if you consolidate during your grace period, you can lock in an interest rate at least a half percent lower than the current repayment rate.
When filling out the consolidation application, provide complete address information, include two references, and sign the promissory note.
Student Loan Industry Video From Youtube
No comments yet