Many students and graduates do not realize that they have the option to refinance their student loans through consolidation loans, regardless of whether the student loans are federal or private. Loan consolidation is usually sought out when a person is struggling to pay off each loan or wants to save money. Consolidation is a smart way to save extra money while paying off your student loans in Tennessee. However, if you ever find yourself falling behind and into bankruptcy, consider seeking legal help from a Tennessee bankruptcy lawyer.
Tennessee Student Loan Consolidation Steps
Tennessee student loan consolidation can save you a ton of money on interest rates and might help you pay off your loans faster. What consolidation does is combine multiple loans together to decrease the varying interest rates into a single fixed interest rate. This means you no longer have to deal with interest rates that range from low to high, but rather, a simple and straightforward interest rate on one large loan.
Not only does this simplify the process of paying off your Tennessee student loans, but this can make a difference in how much you have to pay each month. Interest rates are what can make student loan repayment so difficult and frustrating. As you slowly pay off your loan, your loan slowly grows larger with interest, making you feel like you are making less progress. With a consolidated loan, you only have to compete financially with one interest rate.
To apply for student loan consolidation, all you have to do is fill out an online Federal Direct Consolidation Loan Application on the Federal Student Aid webpage and Promissory Note that gives your consent to pay off the Direct Consolidation Loan. If you have any questions, be sure to talk with a bankruptcy lawyer.
Private Student Loan Consolidation Steps You Can Take
If your student loans are private, do not panic. You can also seek Tennessee consolidation for private student loans, a similar process to seeking consolidation for federal student loans. The same benefits of avoiding multiple interest rates apply here, but there is one downside. You cannot combine or consolidate federal student loans with private student loans.
This means if you have some federal student loans and some private student loans, you may have to combine the federal loans in a separate consolidation loan and the private loans in a second consolidation loan. At the very least, this will only leave you with two large loans, but with two interest rates to keep track of instead of several. One benefit of private loan consolidation is you can obtain a lower interest rate the higher your credit score is.
Bankruptcy Lawyer in Chattanooga, TN
Going through the loan consolidation process can be a massive decision to make. Do not hesitate to seek financial answers from our legal team in Chattanooga, Tennessee and North Georgia. Contact Tom Bible Law at (423) 424-3116 today to talk to a Bankruptcy lawyer in Tennessee for a free consultation. Our Tennessee bankruptcy attorneys are located in Chattanooga, Kingsport, and Tullahoma.