Student Loan Consolidation

Why Consolidate Your Student Loans?

It's January of your senior year and time to start thinking about all those loans you took to help pay for college. Between Direct Stafford Loans, Perkins Loans and all the rest, both subsidized and unsubsidized, you begin to realize that a year from now you will have run out of grace period and have to start paying back all those loans. You're going to be paying back eight different loans at eight different interest rates and eight terms.

Or you have been out of college for awhile now, and you haven't been able to land that $100,000 a year job. You took the entry level job that doesn't pay quite enough, and you've got too much month left at the end of your money and you are in danger of falling behind on your college loan payments.

Or you have been reading about the budget cutting bill that has been moving through Congress and you realize that come summer, it's likely that your loan interest rates are going to start climbing. What should you do?

A student consolidation loan could help with all of these problems. You may be able to combine all those Federal loans as well as some state loans into a single monthly payment. You may be able to lower your monthly payment either with a lower interest rate or by extending the loan payment term. This can be a big help at the beginning (when your salary may be low). Later on when you are making the big money, you can increase your payments if you wish.

Depending on your circumstances, the types of loans and who your lenders are, you may be able to consolidate your loans through the federal government program.