| After graduation, many students do not realize the | | | | the total amount of money you will be repaying; so |
| total amount of student loan payments they will be | | | | be sure to pay any extra amount on your payment |
| responsible for every month. Several smaller loan | | | | that you can, if possible. |
| payments can add up to a substantial amount of | | | | Beginning the Consolidation Process |
| money each month. While the interest rates for | | | | Once you have decided to begin the consolidation |
| student loans are great, and the education received | | | | process, the most logical option is to contact one of |
| as a result of the loans is worth the inconvenience of | | | | your current lenders. Most of the lenders for federal |
| loan payments, many students will still need to | | | | student loans will be happy to buy out the loans from |
| research ways to make their student loan payments | | | | your other lenders and consolidate them for you. Be |
| more manageable. | | | | sure that you ask about the difference between |
| Fortunately, there are several worthwhile options for | | | | private and federal loans; because many lenders treat |
| borrowers who find that they need some help in | | | | them very differently during consolidation. You may |
| adjusting their loan payments to fit their income. One | | | | also need to specify that you are interested in |
| such option is student loan consolidation, which is | | | | locking in the lowest interest rate possible for the life |
| simply combining all of your student loans into one | | | | of the loan. If you are a married borrower and your |
| lender, and therefore making one monthly payment. | | | | spouse also has loans, the lender may suggest that |
| Should You Consolidate? | | | | the two of you consolidate all of your loans together, |
| If you find that you are having trouble meeting all of | | | | for one lower monthly payment. Be extremely wary |
| your payment obligations every month, you may | | | | of this option: by combining all of your loans into one, |
| want to consider consolidating all of your student | | | | you are taking joint responsibility for the debt. This |
| loans into one monthly payment. The payment is | | | | means if one of you dies, the other spouse continues |
| usually smaller under consolidation, which is beneficial if | | | | to be responsible for the loan; it also means that, in |
| you want to reduce the percentage of your income | | | | cases of divorce, you must go through the process |
| that is used to pay your student loans. Another | | | | of attempting to divide the debt. |
| reason to consolidate, especially if you have an | | | | There are many companies that will help walk you |
| adjustable interest rate loan, is that you can often | | | | through the process of loan consolidation; however, |
| lock in an interest rate under consolidation. You will | | | | make sure that you are well-informed of the actual |
| want to be very careful, however, not to mix | | | | process before you sign on with any one lender. |
| private and federal student loans together when you | | | | Student loan debt does not have to severely affect |
| decide to consolidate; because when you do so, you | | | | your finances, and consolidation is a great method of |
| will lose all of the tax benefits available to you with | | | | managing this type of debt. As long as you have |
| your federal loans (such as the tax deduction for | | | | researched all of the options of consolidation, and |
| interest paid). | | | | you have also well-researched your lender options, |
| Another factor to consider with loan consolidation is | | | | you can go through the process of student loan |
| that by reducing your payments and lengthening the | | | | consolidation assured that you are making a very |
| term of your loan repayment, you will be adding to | | | | wise financial decision. |