Online student loans
How to apply
You can apply through your lender or login to the website that caters to people interested in consolidation.
If you have already graduated, you'll be asked for:
• Information on your lenders such as their name(s) and address(es)
• Two Personal references ( must be US residents)
• The Balance and rate of interest of your current student loans • Your choice of online student loans payment plan. If you are still in school, you?ll be asked for: • Your Social Security Number
• Your Date of Birth
• Your Driving License Number
• Your Address
• Two references ( US residents)
• Your expected graduation date
• Your choice of repayment plan
• Your expected graduation date
The Online student loans applications are then verified and processed and a disclosure statement is prepared. Checks are issued to current lenders and you are sent a online student Loan Consolidation Disclosure Statement and Repayment Schedule. Thirty Days from the date your loan is funded, you are required to begin repayment according to that schedule.
Merits:
Consolidation helps to:
• Cut down monthly payments by 50-60%.
• Extend the repayment term
• Lock in on a Fixed interest rate
• Single-statement billing
• Flexible repayment plans
• No credit check, no co-signers required and no fees
• Choose a plan that best suits you
• No prepayment penalties
• One payment each month
• Less paperwork
• Improve your credit rating
• Loan consolidation saves time and money
• Direct all your queries to a single lender
• People with defaulted loans choose this method to boost their credit
• You can consolidate your loan jointly with your spouse
Drawbacks:
Consolidation does have its own downside, such as:
• You may end up paying more interest on the online student loan, due to extended repayment period.
• You will not be able to benefit if there is a fall in interest rates.
• If you consolidate during your grace period, your grace period will be reduced.
• You may lose certain privileges such as loan forgiveness when you consolidate.
Repayment term:
The length of time you can choose to repay your loan varies from 12 to 30 years depending on the total amount of your online student loans. You also have the option of prepaying your loan with no penalties at any time.
Repayment Options:
You can choose one of the many repayment plans that best suits you. Some of them are:
Level Repayment:A level repayment/ Equal payments option provides equal monthly payments over the term of your loan.
Graduated Payments:This option allows lower monthly payments which cover only interest that increase later in the repayment period payments for either the first 2 or 4 years of your repayment period. For the remaining term, the principal is also included in the amount paid and so the monthly payment goes up.
Income-Sensitive Repayment:This provides for payments to be attuned to your expected total monthly gross income from employment and all other sources.
Extended Repayment Plan:This option allows up to 25 years of repayment term provided that your loan amount is more than $ 30,000 to less than $ 60,000.
Consolidating Again:
You can consolidate again only if you have at least one eligible federal student loan that was not included in your earlier Consolidation Loan. However, a new interest rate will be calculated using the average of your current consolidation Loan interest rate and the interest rates of any other loans you are consolidating.
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