Student Loan Consolidation Can Help

Copyright 2005 Dean Shainin

Today’s career minded students can get help with the burden

of having several student loans. One can focus on their

chosen career, instead of losing sleep over paying several

monthly student loan payments. Student loan consolidation

can be the solution with several advantages.

How Student Loan Consolidation Works

Here is typically how a student consolidation loan works.

When a student first applied for several loans from several

different agencies and student loan providers, they each

gave a different interest rate and term for paying back the

loans. The idea of student loan consolidation, is to take

all the different student loans and put them into one easy

convenient loan. You them only have to make one monthly

loan payment every month, instead of several loan payments

every month over time. This saves the student both time and

money. Having a lower interest rate and less checks to

write every month are a couple of advantages of doing a

student loan consolidation.

5 Helpful Benefits of Student Loan Consolidation

1. Lower Monthly Payments. Depending on your student loan

situation and the type of lender you choose, you may be

able to lower your monthly payments by up to 50%

2. Having Simple Loan Payments. By consolidating your

student loans, you only have one loan payment per month and

one check to write. This is very beneficial if you are

writing several checks every month to multiple lenders.

3. Having Fixed Interest Rates. With some federal

consolidation loans you can have a fixed rate for the life

of your student loan. It’s best to do research to see what

the best interest rates and term you are eligible for. You

can check online to calculate the interest rate on a new

student consolidation loan based on the rates of your

current student loans. You can then round up to the nearest

1/8th of a percent of the weighted average of the interest

rates on your eligible student loans.

4. Extending Your Payment Period. You may have a lot of

student loan debt. With federal consolidation loans you may

be able to extend the payment term up to 30 years. It’s a

good idea to realize you will end up paying more interest

over the life of your student loan consolidation. The idea

is to get some leverage until your career takes off. You

can focus on making money instead of several monthly loan

payments.

5. In School Consolidation Programs. While still in school,

eligible students can lock in a low rate. This would put

you into repayment status, but since you are still in

school, you are automatically put into deferment. The

drawback of consolidating your loans while in school, is

that you lose your 6 month grace period. The solution to

this would be to request forbearance for up to 1 year on

your student loan consolidation. Here again you can do some

research and get more information online.

Student Loan Consolidation Help Online

With today’s Internet technology, you can get a student

loan consolidation quickly and easily. The Internet makes

research and finding great programs, easy as a few clicks

of the mouse. You can learn everything you need to know

from information sites that provide the latest news and

data in regards to student loan consolidation. With just a

few clicks of the mouse, you now can get loan quotes and

compare loan companies without having to run all over town.

Student Loan Consolidation Helps Relieve Stress

Student loan consolidation can help student loan borrowers

focus on their education, instead of debt. With a single

new loan and lower monthly payments, you can focus on

what’s most important, education and your new career. There

is no need to lose sleep stressing out about how you’re

going to pay back all those student loans. There are

several agencies and companies online that can help with

many resources and information to get the help you need.