| If you're one of the many folks out there that has a | | | | increases your chances of getting your loans |
| lot of student loans, you should consider government | | | | consolidated. Keep in mind that you are pretty much |
| student loans consolidation. The importance of a | | | | applying for an entirely new loan and that your lender |
| good education continues to rise in tandem with the | | | | will treat it that way; considering your responsibility, |
| cost of education. These days it is virtually impossible | | | | reliability and other risk factors. |
| to get a good job without a college education. For a | | | | Why Consolidation? |
| lot of folks, especially those with multiple degrees, | | | | Another thing to think about is the fact that you will |
| this means that by the time they're done with college | | | | be paying more money on the back end of your loan. |
| they are burdened with many different loans, | | | | Sure, you definitely save money upfront without |
| government-funded or not. Although loans are a | | | | consolidation, but the accumulated interest will end up |
| necessary evil, they can often get out of control. | | | | costing you more money over the life of the loan. |
| There is something you can do about it however. | | | | What it pretty much boils down to is that you are |
| What does consolidation mean? | | | | making smaller payments to help you deal with things |
| A government-funded student loan can be | | | | immediately but small amounts of money are being |
| consolidated just like any other loan. Consolidation | | | | added to your loan in the form of interest. This |
| means that all of your loans are "bought out" by a | | | | means that you are in effect spinning your tires |
| lender (maybe even the lender that holds your | | | | because you are only paying on the principal a little bit |
| current loans) and lumped together into one big loan. | | | | at a time. Most of your monthly payment goes |
| This allows you to pay them all off in one monthly | | | | towards the interest, which is pure profit for the |
| payment, rather than a bunch of smaller payments. | | | | lender. This is why consolidation is a great idea. |
| This saves you money in the short term because | | | | Conclusion |
| you will be making lower monthly payments over a | | | | There's no reason to continue struggling under |
| longer period of time. | | | | several government-funded student loans. |
| How To Qualify | | | | Consolidation programs help students such as you |
| Before you leap into consolidation there are a few | | | | better manage your student loans by allowing you to |
| things you have to understand. First, you have to | | | | make one large monthly payment rather than |
| qualify for consolidation, which means that you need | | | | numerous small payments and the consolidated |
| to be in good standing on your student loans. To be | | | | payment will usually be for a smaller amount than |
| in good standing you must still be within your | | | | what you would be paying had you not consolidated. |
| six-month grace period after graduation or have | | | | Government student loans consolidation is a must for |
| made three full monthly payments on time on each | | | | college graduates saddled with multiple government |
| of the loans that you want to consolidate. This | | | | student loans. |
| demonstrates that you have some responsibility and | | | | |