| With the average college graduate leaving university | | | | The discounts in interest rates given if you set up |
| with approximately $20,000 in debt, there is no doubt | | | | monthly bank transfers or you always pay on time |
| that college loan consolidation is an effective financial | | | | are small compared to other financial services. The |
| loan option for graduates. By consolidating college | | | | lenders blame squeezed margins on their college loan |
| loans, graduates will be able to reduce their monthly | | | | consolidation products due to regulations. As such |
| payments, gain flexibility in repayment options, | | | | you can expect to receive a maximum of 0.25% in |
| reduce their numerous monthly repayments into one | | | | interest rate reductions if you set up a monthly bank |
| manageable monthly payment, in some cases reset | | | | transfer and around 1% in interest rate reductions if |
| the clock on deferments and forbearances and gain | | | | you don't miss a payment within the first 36 months |
| favourable interest rate discounts and rebates. | | | | of the term. |
| However, before you decide to consolidate your | | | | If you are married and you are now both ready to |
| college loans, you need to be aware of certain | | | | consolidate your loans, you will not be able to |
| limitations and potential drawbacks. These don't | | | | consolidate your partner's and your loans into one. |
| necessarily mean you need to rethink consolidation all | | | | Since July 1 2006, married graduates will not be able |
| together but rather guide you through aspects you | | | | to consolidate their loans together due to potential |
| need to consider before finally taking the plunge and | | | | difficulties if the couple decides to split. |
| consolidating all your college loans into one. | | | | When you have decided to consolidate your college |
| The first thing to keep in mind is that you can only | | | | loans, keep in mind that by consolidating you will |
| consolidate your college loans once. Once you have | | | | loose all your interest benefits obtained with Perkins |
| done so, you will not be able to re-consolidate your | | | | Loan. The good news is that if you have Stafford |
| loan with another lender. The exception to this rule is | | | | loans, you keep all the subsidized benefits. |
| when you have left some loans out from the total | | | | Finally, in most cases, lenders can only offer you |
| consolidated amount and now wish to add on more | | | | college loan consolidation product only if you have |
| loans. In this case, it will be considered as a new | | | | $7,500 or more in college debt. |
| consolidation and you could potentially switch to a | | | | College loan consolidation is not an easy decision and |
| more favourable lender. | | | | should not be taken lightly. Although it has clear |
| Another point to consider is the level of discounts | | | | benefits for many graduates and their borrowing |
| you could receive when consolidating college loans. | | | | parents, you still need to consider all the limitations. |