Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Student Loan Consolidation and other Student Loan topics.
Student loan consolidation is a tool that allows you to roll all of your loans into one loan. However, federal and private student loans must be consolidated separately. Once you consolidate, you only have to make one payment for your federal loans and one payment for your private loans each month, as opposed to multiple ones for each loan type. This also may significantly reduce the dollar amount of your monthly payments.
Consolidation can save you money on payments to multiple accounts each month. It can also save you a nice chunk of change if the rate you consolidate at is lower than the original loan interest rate.
Now you can save more money over the long run and have affordable monthly student loan payments. This makes it easier to keep up with your payments and avoid late fees or defaulting on your student loans. Many different companies offer to consolidate student debt. Take a look at the options and decide which is best for you.
|Jennifer Mathes, Ph.D.|