Student Loan Consolidation
- Author Cary Bergeron
- Published July 2, 2007
- Word count 508
Student debt consolidation is the process of
consolidating several types of loans into one
debt. This results in reduced monthly payments-
which results in a lot of saved money in the long
run. Consolidation loans will have fixed rates-
giving you an added benefit on saving to recover
your debt.
Such services can be obtained by American
Education Services consolidation- or AES for
short. You can save up to 50% on your bill with
this service- a very good value indeed. ACS
consolidation is also available- and is much like
AES in terms of how it works. Federal
consolidation and Network consolidation also work
in nearly the same way- giving you many choices.
Not only can you save a good deal of money on
your bill- but you get the added benefit of
having just one bill a month- not several. This
can reduce stress and let you route your energy
to other problems, instead of worrying about
which bills you should pay.
You can generally choose debts that will last 10-
30 years generally. You may get lower payments,
but the total amount to be paid will be higher in
the long run. It has been debated as to whether
the government should allow such consolidation
among the Federal consolidation service only.
This would put some banks and companies at a loss,
such as the AES consolidation or ACS
consolidation, but may be better for students in
the long run. Federal consolidation has a very
good rate- and is often better than banks or
other companies can do. You will also not
encounter hidden fees or tricks- making Federal
consolidation an easy choice. This isn’t always
the best way to go- as some companies actually do
have lower rates. But make sure you get a second
opinion before you decide on anything for certain.
With such consolidation, you can lower you
monthly payments. However, you will want to
debate the decision, as you will end up with 10-
30 years worth of debt to be paid. The
consolidated debt into one bill can be less
stressful, but often this is a small benefit when
considering long term effects. You may wish to
pay separate bills and have the freedom of paying
off your student debts as fast as you can-
certainly much faster than 10-30 years worth of
debt.
If you are looking into student loan
consolidation- make sure you look at your options
first. Rushing into student loan consolidation
can put you into a huge debt that will take you
many years to recover from. If you are on the
verge of bankruptcy, or desperately need the
money, consolidation is the best choice for you-
but keep in mind you will be paying your decision
off for many years to come. If you are looking to
simplify paying your bills, this is probably a
bad choice- and this decision shouldn’t be taken
lightly. You should talk to a consolidation
broker, or ask help with your bank for more
information to see if this is right for you.
http://www.studentloancenter.info
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