| A college graduate faces many difficult financial | | | | consolidation is the average of all of the interest |
| decisions upon graduation, but luckily consolidating | | | | rates for your current federal student loans. This |
| federal student loans will rank as one of the easiest | | | | means that you will not be saddled with a |
| decisions they will ever have to make. Federally | | | | consolidation loan that is significantly more than your |
| backed student loans are commonly referred to as | | | | individual loans combined. |
| Stafford loans, and with a Stafford loan the federal | | | | When you consider that you are taking several |
| government backs the loan and guarantees payment | | | | monthly service charges and reducing them to just |
| to the bank. ' | | | | one service charge, you begin to realize the monthly |
| The government would prefer that the student pays | | | | savings a federal student loan consolidation program |
| back the loan, but if the student defaults then the | | | | can be. It saves you money, reduces the number of |
| government will step in and compensate the bank. | | | | loans you have to pay, and it eliminates excess |
| Because of this backing, consolidating these loans is | | | | service charges. |
| an extremely easy process. | | | | A federal student loan consolidation program is one |
| To consolidate your federal loans you simply fill out | | | | less thing a new college graduate will have to worry |
| the paperwork, and then wait for the bank to set up | | | | about. Since it is backed by the federal government, |
| your new loan. The interest rate for a federal loan | | | | your approval is almost guaranteed. |