| We are severely restricted from exploiting our | | | | Step 2 - Separate Federal and Private |
| abilities if we do not enjoy a good education. A | | | | There is a lot of difference between a federal loan |
| college degree is very essential to enjoy a good and | | | | and a private loan. Federal loan offers additional |
| satisfying career. However, going to college or a | | | | benefits which private loans never offer. If you |
| private university is not cheap. You cannot avoid | | | | combine your federal loans and private loans into one |
| taking debts to finance your education. This is true | | | | big loan, you risk losing the federal loan benefits. For |
| for most students and that is why student loans are | | | | example, your repayment towards the federal loan |
| very popular. | | | | qualifies you for tax deductions. If you combine the |
| It is natural for a student to worry only about | | | | two loans, you will lose this benefit as this option is |
| studies during college. However, proper repayment of | | | | not available with private loans. |
| the loan begins to loom large after graduation. Reality | | | | Step 3 - Opt for an affordable payment schedule |
| bites and it bites hard. If you find your student loan | | | | Once you decide to combine your loans, you will |
| to be beyond your repayment capacity, why not | | | | have to pay interest at a much lower rate. Further, |
| consider a student loan consolidation to restructure | | | | you will get more time to repay your loan. On the |
| your finances and organize your numerous loans. | | | | whole, you should use these benefits to make regular |
| Read ahead for some tips in this regard. | | | | repayments with minimum stress on your finances. If |
| Step 1 - Research is a must | | | | you can afford it, try paying more than your |
| Study lenders as hard as you studied for your | | | | minimum monthly repayments. When times are good, |
| exams. Do you research well and always keep in | | | | it makes sense to repay loans quickly so that they |
| mind that you are the only person who is concerned | | | | are not around to trouble you when your finances |
| with your interests. Lenders focus on profits first and | | | | take a beating. Make it a point to pay at least 33% |
| nothing else. College must have taught you the | | | | extra to repay your loan a lot faster. Do this only if |
| importance of homework. Make sure you deal only | | | | you can afford it. |
| with reputed institutions. Almost all reputed lenders | | | | If you pay more than necessary, your loan will |
| offer flexibility as far as applying for the loan is | | | | quickly come down at a much faster rate. Your wise |
| concerned. Most of them accept online applications | | | | decision to go in for student loan consolidation will |
| and also allow you to manage your account over the | | | | definitely improve your finances. However, do keep in |
| web. Loan counselors are available online to help you | | | | mind that blindly choosing just any lender will only |
| understand the transaction better. | | | | cause more harm than good. |