Loan Consolidation? Check.
January 21st, 2015 by Lette Berhe
There are those of you about to enter into world of loan repayment who may have heard about this thing called loan consolidation. You think you have an idea of what it means, but just aren´t quite sure. Well don´t let the technical jargon throw you off. Here´s a nice little break down to start you off on the right track. First important fact, loan consolidation can be achieved through a federal or private lender.
Consolidation vs. Refinancing
When one speaks about consolidating loans, they are referring to combining multiple loans into one. This allows you to have one bill and one easy monthly payment. In comparison, when you refinance, rather than combining loans, you take out a new loan under new terms in order to pay off other existing loans. If looking to work with a federal lender, the only option is loan consolidation. However, if dealing with private lenders, you consolidate your loans into one easy monthly payment by refinancing; the goal being to ideally receive a lower interest rate under those new terms. Read the rest of this entry »