| For many students obtaining student loans is as | | | | rates. Most students don't have a high credit rating |
| simple as clicking on a web site, filling out a form and | | | | when they are in college so they end up paying |
| waiting for the money to arrive at the university or | | | | higher interest rates on private loans. If they have |
| in your checking account. That's a simple solution to | | | | been paying monthly payments on a credit card while |
| all of their financial woes. They never give a thought | | | | going to college, their credit rating may have risen |
| to paying back their loans until they get close to | | | | considerably, allowing them to get a loan with lower |
| graduation day. Then they suddenly realize that six | | | | interest. If so, loan consolidation can save them a |
| months after graduation they will be paying a large | | | | considerable amount of money. |
| amount in loan repayments every month. At that | | | | Another advantage of school loan consolidation for |
| point, the best solution may be to consolidate school | | | | students who have private loans is that they can |
| loans. | | | | remove the co-signer from their loans. This relieves |
| There are only two benefits of consolidating school | | | | the co-signer from any liability if you default on your |
| loans. You get to choose your monthly repayment | | | | loan payment. You have to make your regular |
| plan, and you only have to make one monthly | | | | payments for two to four years before you will be |
| payment that will be considerably lower. If you have | | | | allowed to do this. |
| the money to make the multiple loan payments, | | | | If you decide to consolidate your school loans there |
| consolidation will not be a help to you. | | | | are several things you will need to take into |
| If you can't make the multiple loan payments now, or | | | | consideration. Make it a point to find a lender who |
| you think it will become a problem in the future, then | | | | doesn't charge an application fee or penalize you for |
| consolidation is for you. There is one thing you must | | | | paying your loan off early. Be sure you know what |
| remember. Although the loan consolidation will lower | | | | the maximum amount of interest is that you can be |
| your monthly payments, it will also raise the amount | | | | charged and how long the loan is for. |
| of total interest you will pay by lengthening the | | | | Whether or not a student should consolidate school |
| amount of time you have to repay the loan. | | | | loans depends on each individual case. If you cannot |
| Students who have turned to private loans face a | | | | make monthly payments on various federal student |
| different situation. Unlike the fixed interest rate on | | | | loans, or if you have borrowed money with private |
| federal loans, private loans have variable interest | | | | loans, you can benefit from loan consolidation. |