Friday, August 19, 2011

Student Loans - Online Student Loan Consolidation


Over the years, student loan consolidation has taken the advantage of internet and started to offer its service online. Although filing your loan consolidation online can seem convenient, it is your responsibility to understand the pros and cons of online student loan consolidation.
The pros
The first advantage when you are consolidating your student loans online is that you can do it at your own convenient. With that being said, you can file your application whenever and wherever you are. You can even do it when you are in the office. Of course you shouldn't do that. It was merely an example to show you the convenience of doing this online.
During the older days, the client and the agent have to meet up face to face for loan consolidation and that take a lot of time and effort. But with the help of the internet nowadays, you can most of the things done over the internet.
You can fill in the application and attach the documents online, discuss further progress through email and you can even pop a question through the messenger. This can save a lot of time and traveling hassle.
And to make your life easier, many loan consolidators are moving toward online payment and you can earn some incentive when you join this service. This is certainly a win-win situation where the consolidators will get their payment on time by charging your credit card and you can save some money in the process.
The cons
As you might have guessed, all good things always come with flaws and this goes the same to online student loan consolidation. There are a lot of scammers online trying to take your money even though you don't have much money as a student or fresh graduate.
Their logic might be that fresh graduates are easy prey and it is easier to get money from you all.
So, when you got an offer that seems to be lower than the market rate, don't be too happy about that. In fact, you have to be cautious about the offer and check the legitimacy of the website with the Better Business Bureau.
Besides that, some online loan consolidators might ask for advance payment in excuse as processing fee and this fee might not be significant. Please don't believe in that because the application for student loan consolidation should be free.
And to be sure that you know this, you should never review your credit card and social security number to any online loan consolidators before you agree on their service. They might claim that these details are to use for your credit check. Again, these are just excuses scammers made up to steal your identity. Legitimate loan consolidators will only ask for these details when you have decided to adopt their service.


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