Student Loan Consolidation after July 1st — Still a Smart Move?

Posted July 18, 2006 by

Now that the July 1st mad dash has come and gone, the question now is “with interest rates higher, does it still pay to consolidate my student loans?”
For many people saddled with student loan debt, the answer is still a resounding yes.
> You may be able to cut your interest rate by 42%, because you may able to obtain rates as low as 5.375% including rate reduction borrower benefits.
> Interest on student loan repayment may be tax-deductible (check with your tax advisor or the IRS for details), which may lower your actual cost of borrowing.
> Student loan consolidation can improve your credit score. By consolidating several student loans into one, the credit bureaus see one loan debt instead of several. This can help improve your FICO score, so that you can potentially qualify for and/or earn lower interest rates on other credit products such as additional student loans, a car loan, mortgage or other personal loan products.
> Consolidation can offer peace of mind. Wouldn’t it be nice to know that you’ve done all you can to manage your student loan debt so that you can get on with your post-education career?
Make it a priority now to explore your consolidation options with a reputable student loan company, to see if consolidating your student loans is a smart move for you.

Print Friendly, PDF & Email

Posted in Salary, Scholarships and Finances | Tagged