Financing your college degree with student loans is the way most students get through. But, many end up saddled with enormous debt after graduating. Many students have loans with more than one lender. Making these multiple payments each month can be quite difficult if one is just starting out a career. Consolidating all of your student loans is a great way to make the payments smaller as well as convenient. Student loan consolidation can make all your loans one loan with a lower interest rate. Consolidation can mean a flexible repayment plan. Before you apply for student loan consolidation, you need to be aware of a few things.

The interest rate you wil get will probably be an average of all interest rates on your student loans. There is a maximum rate you can be charged, however. You need to check for the current rates.

The only way to reduce your monthly student loan payments is to lower the interest and extend the repayment period. Normally you have 10 years to pay. If you owe a large amount, $30,000 or more, you may be able to extend this to 30 years. This can reduce your monthly payments considerably. Remember that one should shoot for paying the loan off early. You can and not be charged a penalty.

You need to qualify to consolidate your student loans. Rules are always changing, but you must have at two loans from different lenders and owe more than $7,500. You must be in the repayment process, either in your grace period or actually making payments. If you have already consolidated, chances are you cannot do it again.

You cannot consolidate in a day. It can take from one month to maybe more. You will still need to make payments while apply for a student loan consolidation.

Finding a lender to consolidate your student loans is as easy as contacting one that does one of your current student loans. You can also contact the U.S. Department of Education.

Here are just a few of the types of student loans that are eligible for consolidation:

Direct PLUS Loans and Federal PLUS Loans
Direct Consolidation Loans and Federal Consolidation Loans
Health Education Assistance Loans
Health Professions Student Loans
Loans for Disadvantaged Students
Nursing Student Loans
Federal Insured Student Loans
Guaranteed Student Loans
National Direct Student Loans
National Defense Student Loans
Federal Supplemental Loans for Students
Direct Subsidized and Unsubsidized Loans
Federal Subsidized and Unsubsidized Federal Stafford Loans
Auxiliary Loans to Assist Students
Federal Perkins Loans

You need to consider if consolidation will actually help you or is needed. If you are having trouble making payments on more than one loan, consolidating can be a great way to free up some cash each month. No matter what you choose, you should strive to pay off your loans early. Do not extend a student loan if you are close to paying one off. No need to have a debt load for years to come.

Custom Search