Student Loan Consolidation Programs

There are both Federal and Private student loan consolidation programs available for those who are finding it difficult to make their monthly loan payments.  Even if you are finding a way to pay numerous loans during each month, wouldn’t it be so much easier to only have one payment to make?

The answer can be found with student loan consolidation.  This is a fixed-rate refinancing program that will help you by combining all of your existing federal or private loans into one new loan.  You can manage your finances better, get immediate payment relief and experience long term benefits, such as:

• Lower monthly student loan payments
• Easier handling, with only one payment to make
• No credit checks, fees or application charges
• Possible reduction of your interest rate by consolidating during the grace period

If you are a college student or graduate that has several student loans, the consolidation program offers an option that will make repayment easier.  Doing your homework beforehand will help you to understand the basics regarding consolidation and make the whole process go a little smoother.

What Does The Student Loan Consolidation Program Do?

Let’s start with an example:  A student, “Jane”, has three separate government loans that she is currently making payments on.  The consolidation program would allow Jane to borrow an amount of money that would combine all three outstanding loans into one.  In essence, all three loans would be considered paid off and a new loan would begin in their place.

3 Main Benefits Of The Consolidation Program

1. 1. Convenience – The students that have several loans will also have to make several payments every month.  This can get confusing with differing due dates to stay on top of and involves more paperwork.  The chance that a payment may get missed increases.  When you consolidate, there is only one payment and one due date to keep track of, which is much more convenient.
2. 2. Save Money – With several outstanding loans, the separate payments are often higher than the consolidated payment.  Let’s say that Jane (from our example above) has three payments of about $120 each.  That means she pays $360 per month towards the loans.  After consolidation, let’s say that the one required payment comes to $250.  That’s a savings of $110 per month that can be used for other expenses as the student begins his or her career!
3. 3. Choices – When students consolidate their loans, there are other opportunities that may become available.  It’s possible that new deferment choices as well as new repayment possibilities come open.  For students that are looking to continue their educations, or are struggling to find a job or are even struggling financially, these added choices can make a big difference.

Whether private or federal, it is in your best interest to investigate student loan consolidation programs if you have multiple loans.  They can lower your loan payments, reduce the stress and hassle of multiple payments and help you to budget your money more effectively.