Student Loan Consolidation

With tuition increasing at a rate greater than the cost of living, college students are depending more and more on student loans to help with the costs of higher education. Over the course of four or five years or longer in the case of graduate students, this adds up to many loans. Whether the loans are from the same lender or program or from different lenders and programs, most student loans can be consolidated under the Federal Direct Consolidation Loan. Consolidating your student loans can occur at any time after you take out your first student loan. The benefits, at least at the moment, are that you only pay one lender and there are several repayment plans to accommodate your financial situation.

There are some basic things to note about student loan consolidation. The first is concerns interest rates. Interest rates for student loans are variable and they change every July 1st. Some years the interest rates go down, some years they go up. This year, student loan interest rates increased by 2% and at 7.14% for those of you in repayment and 6.54% if you are still in school. The trend for interest rates at the moment is in the upward swing and your best bet to avoid the variable interest rate increase is to consolidate your student loans. Student loan consolidation sets a fixed interest rate for all of the student loans you consolidate. At this point we are at the fourth lowest interest rate student loans have ever seen and it is best to consolidate now while they are still low. You don't want to end up paying a 9% interest rate on your student loans. The other important aspect is timing. If you are out of school, then you should simply consolidate your student loans as soon as possible. However, if you are still in school and plan on taking out more loans this year, you want to wait until you receive your loans for the last quarter you are in school this academic year. By waiting, you can consolidate all of the student loans you currently have at the lower interest rate.

Need to consolidate your student loans, here are a couple of resources for you:

No cost student loan consolidation

Lock in a 1.5% Lower Rate Consolidate your student loans. Cut your rate by 52% and save thousands

Consolidate multiple federal student loans with the Student Assistance Foundation, providing Great Low Rates!

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