Private Loan Consolidation : Hidden Charges

Applying for an Advertised Low Interest Private Student Loan Consolidation:
Beware of “Hidden” Costs, Fees and Charges

By Kara Lilly

Debts. Mounting Debts. Debts Out of Control. Flashing across the recesses of your own mind with regularity may be these phrases. If you are like many people in the world today, you are confronting — or trying to confront as best you can — ever mounting debt. In point of fact, you may be trying to get control over growing debt before it becomes a serious problem and before it really starts to have a negative impact on your overall credit history and credit score. One of the major debt problems that you may be having is with your private student loans.

With this in mind, one solution that you should include in your overall debt management mix and plan should be applying for private student loan consolidation, including low interest debt consolidation loan. Provided you make application for a low interest debt consolidation loan while your credit score is still in a fairly sound position, you will have a number of options available to you. However, you will need to keep in mind that oftentimes there are “hidden” fees, costs and charges that are associated with a low interest debt consolidation loan which you may have seen advertised.

The Element of Buyer Beware

When it comes to considering an advertisement for a low interest private student loan consolidation, you really do need to keep in mind the age old phrase of caveat emptor — buyer beware. With very few exceptions, a lender that is promoting a low interest debt consolidation loan through advertisements will not be fully open about all of the costs associated with that loan option. Rather, the lower interest rate necessarily (and naturally) will be prominently promoted. At best, in some very fine and nearly (if not completely) illegible print tucked away in the bottom corner of the ad will be some general information about the existence of other fees, charges and costs associated with the loan.

You need to keep in mind that no matter how closely you scrutinize the advertisement, the advertisement is not an appropriate source for you to obtain information about a low interest student consolidation loan. Speaking with the financial aid office at your school, compare on the internet and do your homework. You’ll end up with a better deal.impose a code of conduct upon educational institutions in regards to their dealings with their student body and lenders.

The house and the Congress have different versions of the bill so even though quick approval is expected in the House it may take some time to get both versions of the reform bill condensed and presentable.

At any rate student loan and student loan consolidation reform is desperately needed and I can't find anything wrong with this bill as of yet...looks like a move in the right direction.