| There is rarely a college student that makes it to | | | | these programs for period of time as short as ten or |
| graduation without needing to take out a loan. With | | | | as long as thirty years. This will make the monthly |
| so many things to buy and very little money while | | | | payment that students must come up with each |
| attending college, many college students graduate | | | | month lower. |
| only to find that the student loan debt that they | | | | On the negative side, a lower monthly payment paid |
| have accrued is a monstrous amount and that the | | | | out over a greater number of years can cause the |
| payments that they must make each month takes | | | | consolidation loan to cost more because there will be |
| up the biggest part of their income. Student loan | | | | more interest charged. Another disadvantage of the |
| consolidation is for students who have taken on too | | | | government facilitated consolidation loans program is |
| much student loan debt. | | | | that only student loans from the federal government |
| It can help you turn your financial situation back | | | | can be included in the consolidation. The many |
| around by allowing you to consolidate your many | | | | students that have them with private lenders would |
| loans into one big loan with one monthly payment | | | | not be allowed to add those to the consolidation loan. |
| that better suits your available income and budget. | | | | Consolidating Private Student Loans |
| Federal Government Student Loan Consolidation | | | | Some borrowers may do better with a private |
| Options | | | | consolidation program. Private consolidation servicers |
| There are two options that students can look to | | | | can consolidate the bulk of your debt. Like the |
| under the federal government to consolidate. One is | | | | government student loan consolidation programs that |
| called the Federal Family Education Loan program and | | | | are discussed above, you would be able to make one |
| the other is the Federal Direct Student Loan program. | | | | monthly payment that reflects the entire balance of |
| These programs can help you if you owe federal | | | | student loan debt that you have accrued during your |
| loans that were guaranteed by the U.S. Department | | | | academic career. |
| of Education, including the Stafford loan, Perkins loan, | | | | With either program that you choose to utilize, a big |
| and Parent Plus loan. These programs offer | | | | benefit of consolidation is that you are usually able to |
| consolidation at a fixed rate - which means that your | | | | negotiate a more favorable rate on your consolidation |
| rate will stay the same for the entire time that your | | | | loan than you are currently paying to your existing |
| consolidation loan is in repayment. | | | | lenders. Even a savings of one percentage point in |
| Reduce Your Monthly Student Loan Payments | | | | interest can literally save you thousands of dollars |
| One advantage of taking out a consolidation loan | | | | during your repayment. And since student loan |
| under these programs is that the terms offered for | | | | consolidations are usually written only at fixed rates, |
| repayment are longer than with some types of | | | | you do not have to worry that your loan payments |
| consolidation. In fact, payments can be made under | | | | will increase with fluctuating market conditions. |