| College can be absurdly expensive. The majority of | | | | a credit report from Equifax, TransUnion and Experian |
| college students find themselves facing thousands | | | | to get an idea of where your credit score is at. If it's |
| upon thousands of dollars of debt after they | | | | gone up 50 points or more since the time you got |
| graduate. Many are left to deal with multiple | | | | your student loans, you may be able to get your |
| outstanding student loans, forcing them to juggle | | | | current lenders to lower your interest rate if you are |
| multiple payments every month. What's worse is | | | | not comfortable with loan consolidation. |
| having all of these accounts open can actually | | | | Lender don't compete on price, so you should expect |
| damage their credit scores. | | | | that you will need to shop around for lenders who will |
| Fortunately, for those who are dealing with more | | | | give you the best interest rate (i.e. the lowest one). |
| than one student loan, student loan consolidation is a | | | | If your loans were for your undergraduate degree or |
| possibility. It will allow you to combine all of your | | | | you have bad credit, you're going to need a cosigner |
| student loans into one, thus closing out your | | | | to consolidate your student loans. Keep in mind that |
| outstanding accounts and allowing you more | | | | they will have to pay for your loan in case you |
| manageable payments. | | | | default. |
| There are two types of student loans: private | | | | You can consolidate your loans if your loan amounts |
| student loans and federal student loans. Consolidating | | | | combined are, at minimum, $5,000 or, at maximum, |
| private loans is different from consolidating federal | | | | $300,000. These aren't fixed numbers, however; the |
| loans. Federal loan consolidation typically has a lower, | | | | minimum and maximum may vary from lender to |
| fixed interest rate, and you can defer the loan in | | | | lender. |
| case of a financial hardship. Private student loan | | | | Student loan consolidation is a big financial |
| consolidation, on the other hand, typically has a higher | | | | responsibility, so before you make any decisions, |
| interest rate, and you cannot defer the loan. | | | | make sure you're financially prepared to take that |
| If you're planning to consolidate your loans, you | | | | step and that you fully understand all of the terms of |
| should be aware of your current credit rating, since it | | | | your new loan. |
| will play a big part in dictating your interest rate. Get | | | | |