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College Loan Consolidation – Advantages and Disadvantages
College tuition is on the rise and students and parents alike are seeking additional methods to help pay for the soaring costs. Student loans, grants, scholarships and work-study are common ways to supplement or completely pay for the cost of college.
Student loans are probably the most popular of financial aid sources. It’s quite usual for a single student to take out multiple loans to cover the many expenses of a college education – tuition, transportation, dorm, books, etc.
At the end of a college student’s career, they often find themselves facing a hefty sum of financial payments which start after a six to nine month grace period post graduation.
Many students turn to College Loan Consolidation to reduce the stress of multiple, high payments, opting for the lower payments and extended terms of a student consolidation loan. While there are advantages to student loan consolidation, students should fully research and analyze all of the aspects of loan consolidation.
College Loan Consolidation – Federal vs Private
Federal loans are more popular than private loans for a few reasons. Federal loans have lower and fixed interest rates and additional benefits such as grace periods. Private loans usually have higher interest rates, and no grace periods.
When consolidating, keep the types of loans separate in order to retain the benefits of the Federal loans. Federal loans provide a cap on the interest rate, along with fixed interest rates.
College Loan Consolidation – Advantages and Disadvantages
It is important to consider both the advantages and disadvantages before applying for a student consolidation loan.
Advantages include:
A lower monthly re-payment amount
Lower interest rate, which may save you money in the long run
Organization of loans – make a single monthly payment
Disadvantages include:
Possibly paying more money over the life of the loan
Most likely paying on the loan for a longer amount of time – 10 to 30 years
There are few options to consolidate this loan later
If you decide that college student loan consolidation is for you, start by conducting extensive research. Begin with federal student loan consolidation programs such as Federal Family Education Loan Program and Direct Loan Consolidation. They offer fixed interest rates capped at 8.50%. There are also other free resources to help you choose. It is important to shop around and gather as much information as possible in order to make the best decision.
For private student loan consolidation, inquire with various lenders both offline and online. Many times, online vendors provide a lower interest rate and quick approval times.
Perform exhaustive research until you are completely comfortable making a decision, as this decision will make quite an impact on your financial future for a number of years.
Help your business with Commercial Property Loan
Want to start a business, but have short fall of funds? If you have a property in your name , then you don’t need to worry, because many banks are eager to give you a commercial property loan against your property. Only thing you have to do is to find the perfect lender for your business. If you cultivate the present scenario of the loan market, you will find that every borrower is striving for a loan that will come with lower interest rates and bigger loan amounts. In this process, the borrower can use the savings into other business purposes.
An commercial property loan can be classified into three categories:
Secured Commercial Loans: A secured commercial property loan is the one which uses the property as a security (protection against default) for the loan. Here , the legal charge for the property is taken back by the lender. If the property is already in a commercial mortgage, then it will be second to the first charge of the lender who had granted the commercial mortgage. As the secured commercial property loan has lower bad debt risk, it carries a much lower interest rate than any other business finance.
Redevelopment Finance: If you want to renovate your commercial property or increase the property valuation by making some changes to your property, then you have to take a commercial property loan for redevelopment your assets. For this, you have to ensure your money-lender whether the project is viable or not. It is found that in many cases, the property is used as the security of the loan.
Bridging Finance: Bridging finance is another type of commercial property loan. In this case, if the market interest rate is higher than your expectation, but you need an urgent loan, you could ask for a shorter amount quickly, besides arranging for the high amount of loan.
But if your project is commercially very sound, then you can ask for an finance secured loan. In this case, the interest rate is much lower than the other type of loans. A Finance secured loan a new business venture, buying a car, to repair your assets or even going for a vacation. This type of loan can be used to consolidate the borrower’s earlier debts. For all these facilities, finance secured loan is also termed as a multipurpose loan.