The Fixed Interest Rate On These Loans Is Locked In For The Entire Term

Category: Finance.

Many recent graduated find themselves entangled in a web of private and federal student loans which threatens to halt their progress before they even get a chance to get going. AES student loan consolidation offers services for federal loans, people currently paying their loans, and parents facing, recent graduates PLUS loans.

However, with student loan consolidation programs such as AES student loan consolidators, there is a sensible way out of this debt, private, be it federal, or something else entirely. With AES, only federal loans qualify for the Federal Loan Consolidation program. On order to qualify for consolidation, the loans must not currently be in default status. There are programs for other loans, which will be covered in later paragraphs. Previous federal loan consolidations are eligible for this program if, new federal education, since consolidating loans have been added. They do not even have to be employed or find a co- signer to qualify to get the loan. There is one benefit to student debtors whose credit is affected by their loans in that their credit rating does not affect their eligibility for the AES consolidation program.

Amidst the many arguments on both sides of the federal student debt consolidation coin is one obvious benefit. With these programs, you have one loan and one rate. Student debtors will no longer be faced with paying multiple loans and multiple interest rates. Everything is condensed into one fixed rate loan payable monthly for a predetermined amount of years. Many student debtors ultimately opt for AES federal consolidation for their federal loans because there are lower monthly payments and the repayment term is much longer. The fixed interest rate on these loans is locked in for the entire term. Federal AES consolidation does not affect your credit rating.

Interest rates for federal AES student loan consolidation are available at the current grace rate of 62% . It does not change your ability to pay your loan off early without accruing a penalty, or hinder your ability to obtain deferment or forbearance if you have to. The interest rate on a federal loan consolidation is the weighted average of all loans rounded to the nearest 1/ 8 percent. During the grace period of your loan, you get sixty percent off of the interest rate of your loan. The interest rate will thus vary from one consolidated loan to another, but interest rates will never exceed 25% . Loans paid by automatic debit are also subject to a small interest reduction, about a quarter of a percent.

In order to consolidate private loans, the loans must not be in deferment. It should be noted that these loans require no upfront fee to be paid by the debtor. They can be in the process of active repayment, forbearance, deferment, or still in the grace period. The incentives on the loan will be determined by your lender or lending institution, and whether or not there are any fees will be determined based upon your credit score. To be eligible for consolidation, the loans must total at least$ 7, 50Interest rates will vary either monthly or quarterly depending on the loan program you choose. Applying for AES student loan consolidation takes up to eight weeks to complete from start to finish.

The period of repayment can be stretched out as much as thirty years.

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