What Does it Mean to Consolidate Student Loans?

Loans are almost inevitable for many people. If youto go to college full time, so the get a job and take
ever want to buy a house, buy a brand new car, orgraduate classes part time. If you get a well-paying
go to college, there is a good chance you will have tojob, that is great. You can quickly pay off your loans,
take out a loan. Going to college is a huge source ofsave for a house, and get going with your life. If you
loans for people, especially for those going to a verydecide to go for more professional schooling, such as
expensive college.medical school, dental school, or law school, you have
When you get your tuition bill, the first thing you doseveral cheap living years ahead of you and more
is think about how you are going to pay for it. Dostudent loans to tack on. Usually this works out
you get any financial aide? Do you have anybecause you can make a lot of money with these
scholarships that can help pay for it? Do you havecareers soon after you graduate.
any money saved from your job? Will your parentsIf you are unfortunate enough to get a low paying
help pay for any of it? When all other sources ofjob out of college, as many are, you can be in a tight
money are gone, you turn to loans.situation. Even with a degree, it's hard to get a high
Now that you have graduated from college, youpaying job out of college. It will take years of
probably have a wide variety of loans to pay off.experience, promotions, and raises to get to a
The Stafford loan is a very common studentcomfortable income. The real problem is that most if
government loan. It is offered in a subsidized orthe big expenses occur when you are young out of
unsubsidized version. If you were lucky enough tocollege. You need to pay off your loans and try to
get an unsubsidized Stafford loan, the governmentsave.
has been paying the interest for you throughoutIf you have lots of loans and the payments are
college. You may also have a Perkins loan, Graduateoutrageous, you can soften the blow. Try to
PLUS loan if you went to graduate school, personalconsolidate your student loans. If you have several
loans, private loans, and credit card debt from cardsgovernment loans as well as private loans, you can
you used to pay for tuition, buy books, or useconsolidate them into one loan with a lower
throughout college. These add up to a lot of moneyconsistent interest rate and effectively lower your
that you owe.monthly payments. This can be a huge help when
After college, you either go to graduate school, get ayou are just starting out.
job, or do both. Most people can't afford to continue