Talking to a number of students every day and dealing with their problems regarding their educational loans, one thing is clear and evident; it is their understanding about the concept of ‘Consolidation’. The moment they understand the benefits of consolidation in detail, the reason why they should think twice about opting for consolidation of their Private Loan Liability will be clear.

Requirements of Private Loan Consolidation

Where there are a number of loan liabilities to handle, each consisting of different repayment deadlines consolidation is the only solution available to them. One can choose the scheme of consolidation either offered by the same lender or different lenders depending upon the benefits so offered.

Benefits of Private Student Loan Consolidation

• Single Loan Liability: Consolidation removes the hassles of handling a number of loans and meeting their various repayment deadlines.
• Reduced Monthly Liability: Consolidation loans are provided at a comparatively lower rate of interest and flexible term reducing the monthly liability of students.
• No Prepayment Penalties: No penalties are charged for repayment of loans before time.
• Reduced Interest Rates: Private consolidation loans generally carry a lower interest rate in comparison with regular private student loans. Reductions in rates are offered to those borrowers who have a satisfactory credit score.
• Repayment Term: Repayment period can extended upto 30 years under the consolidation loan program.
• Interest Rate Reductions: Reduction in interest rates are offered to those who apply for a private student loan along with a credit worthy co-signer. On time repayments and auto debit facility in banks also offer the benefit of reduction in interest rates.
• Residency & Military Deferment: Deferment for a period of 48 months is given to medical/dental residents and a 36-month deferment arrangement for all active-duty military candidates are available under the Graduate Leverage Private Student Loan Consolidation Program. (GLPSLCP).

The list of benefits clarify the dilemma whether to consolidate or not to consolidate their Private Student Loan Liability.