How to turn variable-rate student loans into one fixed-rate loan?

    If you have several student loans with variable interest rates and if you are facing problems in making the payments on these loans of yours, you can consolidate your student loans in order to solve this problem. If you have federal student loans, you can try to make the payments through Income Based Repayment plan or IBR or else if you have private student loans you can take the help of online debt settlement and consolidation companies who will help you in consolidating your private student loans. How to turn variable-rate loans to fixed rate loan? You can turn the variable-rate student loans into fixed-rate single loan by taking out a consolidation loan. You can take out a consolidation loan all by yourself. For consolidating your loans you will have to negotiate with your lenders. However, if you think that you need help to consolidate your student loans, you can take the help of an online debt settlement and consolidation company. The consolidation company will first thoroughly analyze your financial situation and then help you in preparing a budget according to your family ad your income and expenditures. The online debt counselor will then enroll you into a debt consolidation program. The counselors of the consolidation company will then talk to your lenders and negotiate a lower interest rate. You will have to make a single payment to the online debt consolidation company each month. As all the debts are consolidated into a single loan, all the variable rates of the loans that you previously had are changed to a fixed-rate loan. Thus, with the consolidation the interest rate is lowered and thus your monthly payment is lowered too. Benefits of private student loan consolidation 1. Lowered interest rate : When you consolidate your private student loans, the interest rate is lowered. Generally, debt consolidation loans are available at lower interest rates. Thus, paying off your loans becomes easier.2. Monthly payment is reduced : As the interest rate is reduced, the monthly payment is reduced too.3. Late fees may get waived off : The counselor may even negotiate with your lenders to waive off penalty charges like late payment fees.4. Managing the debts becomes easier : Managing your payments becomes easier as all of the loans are grouped as a single debt. Instead of making several payments in a single month, you will have to make a single payment each month.5. Flexible repayment period : In a debt consolidation program you can choose to pay off the debt over a certain period of time according to your situation. Some lenders even allow you to make the payments for 10 years. However, if possible you can pay off the loan faster than usual. Debt consolidation also helps you in avoiding credit card debt. Rather than using your credit cards to pay off your student loans, you can try to pay off the debts through debt consolidation. Credit card debt will hurt your credit score all the more and your debt problems will go in increasing. Thus, it is better to use debt consolidation instead of making the loan payments using your cards. No related posts. Powered By iWebRSS.co.cc