Loan Consolidation

5 Benefits of Student Loan Consolidation

• Simplifying Loan Payments. By consolidating your student loans, you are only writing out one check a month instead of multiple checks to multiple lenders.
• Lower Monthly Payments. Depending on your credit, your student loan situation and the type of lender you choose, you may be able to substantially lower your monthly payments possibly by up to 50%.
• Extending Your Period of Payment. You may have a considerable amount of student loan debt. With federal consolidation loans you might possibly be able to extend the payment term up to 30 years. You may not like this idea, but what it does do is allow you to pay small amounts until your career takes off and you are then able to make more substantial payments.
• In School Consolidation Programs. With this option you can lock in a good rate while still in school. You will loose the 6-month grace period after graduation but may save a bundle on interest if you see that rates are going up. Just do a little research and stay up on what is going on with rates.
• Having Fixed Interest Rates. You can check online to calculate the interest rate on a new student consolidation loan based on the rates of your current student loans. 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.