| There are very few individuals today who can afford | | | | require the borrower to owe a minimum amount to |
| to pay for their education without any financial aid | | | | become eligible. However, this is not a universal |
| whatsoever. It is almost impossible to make it | | | | requirement. |
| through to graduation without any financial assistance. | | | | The law is very flexible as far as consolidation is |
| This is the reason why almost all educational | | | | concerned. You can consolidate your loan from any |
| institutions offer scholarships and grants to their | | | | other lender as well. You may want to start by |
| students. However, this often falls short and the | | | | looking at your original lender as you have dealt with |
| individual opts for student loans. The biggest | | | | them in the past. However, there is a lot of choice |
| disadvantage with such loans is that they have to be | | | | available. |
| repaid and this is where student debt consolidation | | | | Irrespective of whether you opt for new lender or |
| loans helps. | | | | continue with the same one, make it a point to avoid |
| You may have to obtain numerous student loans to | | | | paying any consolidation fee in the very beginning. |
| complete your education. By the time you graduate | | | | Charging for consolidation of federal loan is illegal. |
| and get a good job, you may have multiple creditors | | | | Debt consolidation is very risky as there are many |
| based on different terms and conditions. Starting off | | | | cheats working in the field. Do not end up increasing |
| with such a huge financial disadvantage can be a very | | | | your financial worries in a bid to end the same. |
| frustrating experience. The future may be provided | | | | There is no compulsion that you should consolidate all |
| for but you must handle your present well. If you are | | | | your loans in one go. In fact, you can choose to |
| not sure about handling multiple creditors at once, | | | | consolidate even a single loan if it helps you save |
| you should opt for consolidation after your | | | | money. However, keep in mind that you cannot |
| graduation. | | | | consolidate a loan which has already been |
| What is consolidation? | | | | consolidated. |
| Look at it from this point of view - you hand over of | | | | You can consolidate your debt without any problem |
| all your school loans to a single lender who repays | | | | as long as ten years has not passed since you |
| them. This is done on your behalf and you now have | | | | started making repayments. Further, it makes sense |
| to repay the debt to the individual lender. | | | | to consolidate all but one loan so that you have the |
| You become eligible for consolidation loans as soon as | | | | option of further consolidation when the need arises. |
| you finish your education. Some consolidation lenders | | | | |