A comparison between Federal and Private Student Loans Consolidation Rates

There are a lot of types of loans for students to select, such as Subsidized Stafford Loans, Unsubsidized Stafford Loans, Plus Loans for parents, Next students private loans, and Federal consolidation loans. Among them, Private and Federal are two sorts of loans that students all well know and pay much attention to. And one of the most essential things to deal in choosing of loan is to make a comparison among student loan consolidation rates. Thus here below we would like to point out the similarities and differences between the two sorts: Federal and Private Student Loans Consolidation for students to have a better choice.
Firstly, let us make sense of an overview about these two types of loans. Private student loan consolidation is a good way to significantly reduce your monthly loan payments by gathering all your private student loans into one manageable loan. It assists decrease the stress of multiple payments, and helps you to budget accordingly to meet your payment as well as your interest rate.
Regarding the Federal Student Loan Consolidation rates, it is designed to assist you with managing your student loan debt. It permits you to combine multiple student loans together, hence having one loan payment and loan holder. Your consolidating loaner merges your existing loans into a new single loan called a Federal Consolidation Loan.
Consequently, there are plentiful differences between these two kinds of loans. First Of All, the owners of Federal Consolidation Loan are almost students while those of Private loans vary by loans. Secondly, the Federal Consolidation Loans claims neither credit check nor cosigner meanwhile the borrower or co-signer of Private loans must meet credit demands.
Take a look at Eligibility Criteria; we can see that Federal Consolidation Loan eligibility is dependent on loan type whereas it differs by loan of Private Student Loans. What's more, the Federal Student Consolidation Loan Interest Rate starts at 3, 5 % meanwhile that of Private Student Loans varies by loan.
As you probably know, there's no discount for Private loans. On the other hand, there's 0.25% with automatic debit and 1% after 36 consecutive on-time payments in Federal Consolidation Loan.
Also, there is the difference in Annual Loan Limits criterion between these two types. In details, the yearly loan limit of Private loans can go up to $45,000. Nevertheless, there's no limit in Federal Consolidation Loan.
Lastly, we should all know the fact that Federal Consolidation Loan repayment starts up to 60 days after funding and it lasts to 30 years. Regarding Private loans, that varies by loan and the lasting year is 5 year less, only up to 25.
Despite the differences between Federal and Private Student Loans Consolidation Rates, there are several similarities of these two kinds. Luckily, there is no guarantee fee for both of them. What's more, no prepayment penalties exist.
To conclude by taking an overview of the two kinds of loans as Federal and Private Student Loans Consolidation Rates, students are able to choose their better choice for the loans they are going to have.

The trouble starts when all your credit cards are up to their limits.

A lot of people think they are coping with their credit card debt until all their cards are up to their limits. This is when the trouble really starts as they now have to pay cash for all their purchases. They now find themselves in the situation where they make a repayment on a card and then need to use that small amount of available credit to buy food and pay the phone bill because that is all the credit they have available.
Debt consolidation can be a big help here if they have not damaged their credit rating. One of the first things a lender will want to see when you apply for a debt consolidation loan is the last three months statements on all of your credit cards and loans. If you have been late with a payment, missed a payment or gone over the credit limit on any of your cards in the last 3 months you have ruined your chances of getting a debt consolidation loan until you correct this situation.
Here are some of the benefits of debt consolidation.
By consolidating your debts into one loan your interest payments will be lower than what you pay on your credit cards and your repayment will be lower also. This means that you will have more money in your pocket at the end of the day or you can pay that extra off your debts and become debt free faster and save even more interest.
You will have one monthly payment to deal with instead of multiple monthly payments all falling on different days of the month which will make your finances much easier to deal with.
You will no longer be afraid to answer the phone as you won't have your creditors or a collection agency asking for payments. You will be able to enjoy the experience of debt free living and when your debt consolidation loan is paid you will actually be able save money.
By setting up a direct debit for your consolidation loan repayments you won't be accruing late fees and over limit charges like you do with a credit card.
There are some very compelling reasons for consolidating your credit cards and other consumer debt into a single loan. If you are tired of living from payday to payday, stressed about the phone calls from creditors and their collection agents, fed up with the stress of being in debt now is the time to act. A debt free life awaits you; why not take that first step in the right direction today?