Is a Sallie Mae College Loan Consolidation for you?
Have your college loans gotten the best of you? Maybe its time to consider loan consolidation.
The Sallie Mae college loan consolidation program provides new graduates with an option that prevents defaulting on federal education loans and generates a few extra dollars monthly. Existing student loans are rolled into a one Sallie Mae Consolidation loan, which provides a lower interest rate (as low as 4.75%). As a new graduate, a few percentage points on interest rates can make a tremendous difference in the payments over the term of the consolidation loan. The lower payments leave more spending cash for life expenditures. Lower percentage rates could mean the difference eating a macaroni and Cheese dinner and a healthy meal.
The interest rate on federal student loans can change every year. When it changes, so does your monthly payment. With a Sallie Mae college loan consolidation, your interest rate is locked in for the length of the loan and that’s a secure feeling you’ll want to have. With Sallie Mae you will also have the option to increase the length of the loan, resulting in lower monthly payments spread out over a longer period of time. While this may be the best choice for you, especially now that you’re just entering the job market; remember that a longer loan period means you’re paying more in the long run.
Applying for a Sallie Mae loan is free - no fees and no credit check. Best of all, when your Sallie Mae college loan consolidation is started, your existing student loans will be immediately paid off, resulting in a better credit score.
Financial setbacks are a common experience for graduates as they attempt to enter the workforce. These setbacks may lead to late or missed payments at times. Once deferment and forbearance options are exhausted, a consolidation loan can help beat these financial setbacks. A Sallie Mae loan can give you the fresh start you need. Problems mount with defaulting on loans and add to the financial setbacks. Sallie Mae college loan consolidation programs can prevent these setbacks from controlling your life.
There are four options for repayment within the Sallie Mae system: Standard, the Extended, Graduated, and Income Contingent.
The Standard Repayment Plan - fixed monthly payments, maximum loan term is no more than 10 years
Extended Repayment Plans - offer fixed monthly payments, loan terms range between 12 and 30 years and depend on the total amount of the loan approved, lower monthly payments are a benefit due to the extended payment schedule
Graduated Repayment Plans - standard loan duration ranges 12 to 30 years, plan increases monthly at two-year increments, payments remain fixed at the new larger amount
Income Contingent Repayment Plan - payment amounts are calculated based on annual gross income, family size and total amount of the loan applied for and the loan term is longer (25 years) allowing the payments to be smaller
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