Beware of Gimmicks of Student Loan Consolidating Plans

It doesn’t hurt to be prudent and when your finances are involved, it makes perfect sense to be extra careful when making decisions. If you are planning to apply for student loan consolidation here are some tips to prevent you from falling victim to some popular gimmicks.

The Deadline Trap

Some offers may use large, bold headings that scream “Apply by this deadline!” The truth is there is actually no deadline when it comes to student loan consolidation plan. You have to be aware that rates do change every July 1st and if you are pleased with the rates for the current year you may apply within the stipulated time to gain benefit from it.

Online Application

There are some lenders that offer special discounts for those who apply online for student loan consolidation. However there will always have reasons why you will not qualify for such discounts! Beware of such unscrupulous offers that attempt to trap the ignorant.

Read the Fine Prints

Sometimes, the lenders may use large size fonts and powerful words to catch your attention. Discounts and offer may be made in order to get you to sign-up for their services. The headlines may sound enticing but make it a point to read the fine prints, they tell you the real thing about a particular plan you may be interested in. Often times there will be hidden conditions or rules that you must satisfy in order to qualify for such discounts or offers.

2 Auto Debit Program

Some may promote their auto debit program where you can get the benefit of auto payment to the lender in cases where you may accidentally forget to make payment for a particular month. Auto Debit may sound cool but watch what happens when they try to deduct the fees and your bank account doesn’t have sufficient balance. You may get late charges fee from both the bank and the creditor in this situation. So, exercise care and check all those related conditions before you sign up.

No Fees to Consolidate Loans

This is one very popular heading you may find used by most lenders looking for people wishing to obtain a student loan consolidation plan. They may use large bold heading claiming no fees to consolidate loan if you sign-up with them. This is mere trickery to lure you into taking notice of their offers. Probably they are talking about federal student loans, and no one ever charges fees for federal student loan consolidation anyway.

1Seals and Logos

There are lenders who imitate seals and logos of university and colleges in order to get your attention. You might be working on the wrong impression that you are dealing with a reputable institution instead of the company you are dealing with. Make it a point to check to see who you are actually dealing with before you jump to any conclusion.

While student loan consolidation plans are a great way to manage your finances and achieve a better lifestyle with your current income, but always do your homework, be extra careful to any kind offer you may receive and take time to make the decision wisely.

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