How to Avoid Student Loan Consolidation Scams?
Considering the present day cost of education, students keen to pursue higher studies really don’t have much choice but to go for loans. Usually, they need to start paying back the borrowed money six months after having completed their education. Some students avail of loans from different sources and therefore are required to make multiple payments every month. Such students may consolidate their loans to make just one payment every month. Consolidation helps saving money and eliminates the likelihood of not paying any one loan installment. Additionally, consolidation is their only option to avoid default, should they fail to make timely payment of loans.
Here’s how to go ahead with consolidation of your students loans:
1. Talk to your present loan provider and inquire if they have any consolidation program on offer. Also ask for the rate of interest chargeable on the consolidated loans.
2. Some lenders tend to pressurize students to consolidate their loans hurriedly. It is recommended to avoid such lenders. Many of the students’ loans don’t have any specified timeframe for loan consolidation.
3. Weigh up the rate of interest of your present loan provider against the consolidation plan for direct loans from the department of education. Do not approach companies not linked to department of education, banks or financial institutions, yet offering to consolidate student’s loans.
4. Find out if the lender is offering a grace period at the start of consolidation. If no grace period is offered, you should look for another lender.
5. All the paperwork, including filling up of forms connected with consolidation program should be completed on your own, without seeking any help from a third party.
6. When submitting online applications, make sure to use a secured website. The address must include https and not just http to ensure that the application is secure.
7. It is worth making a personal call on the local workplace of your chosen lender to check the level of customer service offered by him. In case you are not satisfied with the level of service provided, look for an alternate lender.