Student Loan Consolidation

Student loan consolidation is one of the most used methods for reducing and working off student debt. If you want to consolidate debt, whether it's a student loan debt or not, you have to follow a certain process. However, this process is easy to follow and will absolutely not require big efforts from your side.

Here is what you have to know about the consolidation process: You combine all of your various student loans into one large loan. Instead of paying toward all your loans each month, you make one payment towards this one loan. So, what will I gain with this, you may ask. If you compare the numbers before and after you have consolidated your student debt, you'll understand that it's a very good deal.

To start out the working career with an overwhelming amount of debt is a daunting prospect to put it mildly. But the fact is that many college graduates unfortunately are facing this situation. Fortunately consolidating your student loans is a great way to meet the challenge of getting rid of the burden of debt from school or college.

The main benefit of consolidation is that you'll normally pay a lower interest rate then compared to what your various loans are already set at. This works the same way as refinancing a home in order to have a lower mortgage payment. And be aware of the fact that the current interest rate is the lowest it has been in almost 40 years. When you do a consolidation you'll pay one interest rate, not several different rates. And at the time you took these loans, the rates were probably higher.

And this means money saved: A lower interest rate on a relatively big loan can save you thousands of dollars in the long run. And in addition to this, some lending companies offer rate reductions for students consolidating their loans while they are in their grace period. A warning though: Stay away from companies that require you to start your payment immediately after the grace period. There are financing companies out there that don't require this. Go to them!!!

And as if this wasn't enough, some companies even offer additional rate reductions. I have heard about companies that reduce your rate by one percent if you make all of your payments on time for two years. And this comes in addition to the discounts described above. One percent may seem small, but if you see it in a perspective of, let's say 20 years, which is a normal payback schedule, it can mean lots of dollars saved.

Another benefit with student debt consolidation is saving time and effort. It's much easier to handle one payment monthly than several separate payments.

A convenient way to do the monthly payments is to let the loan company deduct it directly from your bank account. Some companies allow that. And if it is a really good student loan consolidation, it will even give you a little interest rate reduction by handling your loan payments this way.

So, if you find that loan consolidation is (in) for you, your challenge is to decide which loan consolidation company to approach and finally select. What I would recommend is that you make a list of all the questions you might have, call a few companies and speak with their representatives. Or you can go online to find a good student loan consolidation company. There are some great companies out there.

Terje Brooks Ellingsen is a writer and internet publisher. He runs the website 1st-In-Loan.net Terje gives advice and helps people with personal financial issues like debt solutions and debt consolidation

---

Debt Consolidation Makes Sense Only with Low Interest Rates

Credit that cannot be managed or is not being repaid... Read More

Debt Reduction Solutions

Finding solutions to reducing your debt takes some thinking and... Read More

Debt Consolidation ? Can You Negotiate with Your Credit Card Company?

The average American household has nearly $10,000 in credit card... Read More

The Pros and Cons of Debt Consolidation Loans

You are swimming in debt. You have 4 credit cards... Read More

Shake off the Chains: Credit Card Debt Elimination is Easier Than You Think!

Feeling like you're on the brink of financial disaster? You're... Read More

Is Consolidating Loans Right For You?

Consolidating loans makes sense but only if you can pay... Read More

Getting the Most Out of Consolidation Loans UK

Before letting too much debt or too many payments get... Read More

Planning To Become Debt Free With A Consolidation Loan

If you have multiple debts, and are struggling to meet... Read More

What is Debt Consolidation?

Here is a useful guide to what is Debt consolidation.... Read More

Debt Consolidation Primer ? Four Things You Can Do to Get Out of Debt

Problem debt is rampant throughout America. In addition to mortgages... Read More

Overwhelmed By Student Loan Debt? Consider a Consolidate Student Loan

A consolidate student loan is the perfect solution for people... Read More

Debt Settlement Strategies

One of the most common social diseases remains dormant for... Read More

Debt Consolidation Loans: Thousands Now Out Of Debt, Who Never Thought They Would Be!

A Debt consolidation loan: Is a personal loan you use... Read More

Credit Counseling ? Get in Line Now to Avoid the Upcoming Rush

Credit counseling is a valuable service for consumers who have... Read More

Best Debt Reduction Service

There was a time when incurring debts was looked down... Read More

Debt Relief From Debt Consolidation

If you are up to your neck in debt, there... Read More

Debt Consolidation Service In Birmingham

Jane was a fun loving girl from Birmingham, you could... Read More

Is A Debt Consolidation Loan Your Best Option?

For many people the lure of easy credit has taken... Read More

Debt Consolidation Confusion

Learning about debt consolidation can be quite a confusing venture... Read More

Choosing the Right Credit Counseling Agency for You ? Some Tips

Credit counseling companies come in all shapes and sizes. Whether... Read More

Consolidate Debt to Help Get You Out of the Quagmire

Will you agree with me if I tell you that,... Read More

How To Get Rid Of Debt Problems Step 1 -- How To Deal With Your Creditors

However far you are along the road of financial/debt problems,... Read More

Debt Consolidation Loan

Debt Consolidation of Different LoansDebt consolidation refers to the restructuring... Read More

Debt Consolidation -- Choose Your Credit Counselor Carefully

Recently passed by Congress, the Bankruptcy Abuse Prevention and Consumer... Read More

Debt Consolidation: Why And How This Strategy Often Backfires!

Debt consolidation solutions, has found that as good as it... Read More

Debt Consolidation for Homeowners: Saving Grace for Inept Borrowers

You cannot understand the importance of being a homeowner until... Read More

Does Working With a Credit Counseling Organization Hurt Your Credit Score?

Credit counseling organizations do not lower your credit score when... Read More

Debt Consolidation ? Discipline is Required if Consolidating with Home Equity

Debt consolidation is a popular topic these days. The average... Read More

Consolidate All Your Debt Into One Monthly Payment

Are you feeling overburdened with debt? Are you paying out... Read More

Debt Consolidation Made Simple

If you have considered debt consolidation then you are probably... Read More

Dangerous Debt Consolidation Loans

On the surface, debt consolidation loans offer cash-strapped consumers some... Read More

Debt Consolidation Benefits

If you've ever been in a situation where you needed... Read More

Online Debt Consolidation ? Devising Newer Ways for Changing Consumer Trends

Consumers today are getting wiser by the day. They are... Read More