4 Questions To Ask Before You Consolidate Student Loan Debt

When you consolidate student loan debt, you are essentially taking out a new loan. It’s important that you have all the information disclosed so you know what you are getting in to. There are several questions that should be presented to the potential lender before you make a decision. Here are 4 of the most important ones.

Here’s What to Ask Before You Consolidate Student Loan Debt

Credit Weight
Before you decide to consolidate student loan debt, you should find out what your credit score is and how heavily it will weigh in the final decision for the rate. If the rate they estimate is too high, you can always take that same information and shop around.

Available Term Programs
Many consolidation programs will allow you to choose a term program that works best for you. Some programs will allow for lower monthly payments over a longer term, or a short term with higher payments to pay it off more quickly. Some will even allow you to defer your payments for a short period of time if you are in a tight spot now.

References and Financial Records
Don’t be afraid to ask for references. In fact, you should ask for them. You will likely not get names and addresses of others, but they should be able to provide you with information regarding professional businesses they are partnered with, and financial records. This is important to ensure the integrity of the lender you choose.

Flexibility of Terms
You want to find out how much flexibility you will have by choosing to consolidate student loan debt with that particular lender. You may be in one situation now that can change later. Since student loans can be carried for as long as 30 years, it’s important to know if there is any flexibility should you need it later.

When you consolidate student loan debt, make sure you know exactly what to expect throughout the duration of the loan.