| How to get the lowest student loan consolidation | | | | payment for 24 months. For those 24 months you |
| interest rate possible: | | | | have never been late. Since you have never been |
| 1. Lock in your interest rate when it is low | | | | late for a payment your lender gives you 1.25% |
| 2. Shop around and find out who has the lowest | | | | interest rate reduction, effectively lowering your |
| interest rate reduction benefits | | | | interest rate from 5% to 3.75%. This is a huge |
| 1. Interest rates that are variable change each year. | | | | money savings especially if you pay your loans off |
| The interest rate is set by the government and will | | | | over a long period of time. |
| be introduced each year in May and take effect on 1 | | | | A reduction like this can end up saving you thousands |
| July. Before you decide if student loan consolidation is | | | | of dollars. But keep in mind that if you are ever late |
| right for you make sure that you are comfortable | | | | you will have to start all over from the month you |
| with the current interest rate. If the interest rate is | | | | made the late payment. Also, check with each lender |
| historically high then I recommend doing a little | | | | to find out when the discount starts, most start |
| research to find out if financial experts think it will | | | | after 24 or 36 months. It is better to find a lender |
| significantly drop in the coming years. If so it might | | | | who offers the benefit earlier rather than later. The |
| be best to wait for the change. | | | | second benefit most student loan consolidation |
| 2. Shop around to find out who offers the lowest | | | | programs offer is automatic withdrawal. In order to |
| interest rate reductions. There are two main | | | | get this benefit ask your consolidation lender to set |
| reductions. The first reduction that most lenders | | | | up automatic debit. Each month, at a pre-described |
| offer is for consecutive on-time payment. Here is an | | | | time your lender will automatically debit your account |
| example, let's say you took a student loan | | | | for your monthly payment. This benefit will usually be |
| consolidation and have been paying your monthly | | | | a reduction of about 0.25-0.50%. |