Student Loan Consolidation – How It Can Help

2007-03-08 10:33:40

( Financial )



If you are a student with multiple student loans, you mostly likely deal with different interest rates, repayment terms, and writing several checks every month. The concept behind a student loan consolidation is to simplify this situation by combining all your different student loans and putting them into one loan. You then make a single loan payment each month to only one lender.

A student loan consolidation offers these benefits:

1. Make only one monthly payment. Paying several bills each month can be stressful especially for students or recent graduates still looking for a job. With a student loan consolidation, you only have to worry about one payment and one due date every month.

2. You can get a lower interest rate. Student loan consolidations often have rates lower than your current loans. If you can get lower interest rates when you consolidate your student loans, even if it is just a small percent of difference, it can save you thousands of dollars. Current student loan consolidation rates are at an all time low. You can take advantage of this to get a fixed low interest rate.

You will find a number of student loan consolidation services to help you. Before signing up on a consolidation program, make sure you research and compare all options available. The Internet is a great source of information when looking for a good consolidation loan program. You can also make use of online loan calculators to help you figure out your interest rate and monthly payments on a consolidation loan. Speak with your lender to find out what consolidation programs they offer, especially if all or most of your loans are from one lender. Prepare whatever questions you might have and get advice from a financial counselor at your school. By learning everything you can about student loan consolidation, you will have more confidence in making your decision.


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