If you have accumulated student loans as you progressed through your degree or diploma and find yourself in a position where you have numerous student loans, student loan consolidation is a very good way of reducing your interest payments by applying for a consolidation loan.
What student loan consolidation really means is that you apply for a single consolidation loan that will cover all of the amounts owing on your student loans combining them into a single student loan consolidation account. You will effectively have reduced the amount of charges and fees which are levied on each student loan account and gives you the opportunity to negotiate the interest rate you are charged.
While you were studying you probably accepted terms on your student loans which which you may not have, had you been in a more sound financial position and by using a student loan consolidation company will free you from the unusually high fee and interest payments. Student loans that are not underwritten by a parent or company are much higher risk loans than most other and in order to bear that risk the student loan companies charge a much higher interest rate.
Consolidation loans are best applied for when your financial position has improved or you have been offered work by a company, are already employed or have been very good a repaying your loans. When you approach a student loan consolidation company you will need all of the paperwork that received from the company that granted your student loans along with the statements indicating your repayment records. Applying for consolidation loans should be done meticulously, the way in which you present your application for loan consolidation will say a lot about you as a person and if you present the application for a consolidation loan with all of the paperwork neatly and logically in order, leaving no question about your past repayment performance and your ability to repay the consolidation loan, the chances are very good that you will be granted a consolidation loan at a good interest rate and favourable term.
Student loan consolidation done correctly can literally save you thousands of Rands in interest and fee payments and if you repay the consolidation loan timeously, will reflect very well on your credit record when you need to apply for any other financing, be it a student loan or other type of loan.
The essence is to make your student loan consolidation application as good as if you were in court presenting to a judge, leave nothing out and emphasize the positive aspects of your consolidation requirements.