Fees -When How Much is Too Much

Every loan application involves fees, whether you are looking for the best student loan consolidation or any other type of loan. They say it takes money to make money -and this is true.

What "they" didn't tell you is that it takes YOUR money to make THEIR money. This is where the idea of the fees structure originated.

Your primary job, in the area of fees, is to focus on how much you are going to be charged. There is more than one type of fee structure and you need to find the one which saves you the most money.

Applicants may have to have background credit checks done and this may be built in to the application fee it self. The way in which the application fee is charged out can make a HUGE difference in how much you pay - depending on the size of your debt the difference can be up to 1000 percent (yes this is serious profiteering).

Here is how it can work, two possible scenarios as follows:

Supposing you are looking to get the best student loan consolidation you  possibly can and you are very eager to do so because of what you are being charged currently.

You go to the first one you find and they tell you there is a $50.00 pre application fee to get your application screened for viability. You think "O.K -I can understand that" You are so anxious to start saving money that you go along with it. They then inform you your application has been approved and that there is a processing fee standard of 1 % of the loan. They build the cost of the fee in to the loan and you borrow 101 % instead of 100 %. You think "its only money". You blindly agree and sign up. Your loan amount is $60,000 and you borrow $60,600.

Scenario 2

No pre application fee and a set fee of $250.00 for the application.

Difference between scenario A and scenario B = $350.00! - or your first months Payment !

This is EXACTLY why you need to shop around. to get the best student loan consolidation deal you can.

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