Student Loan Consolidation Program – Easy Way to Manage Your Student Debt

October 3, 2009 by  Filed under: Debt 

With the rising costs of education, almost every student ends up taking out multiple student loans to help pay for college expenses. Once graduated and repayment begins, managing more than one loan is not an easy task each month due to varying due dates and interest rates for each of these loans. There is always a good chance of missing a payment on any of these loans simply from being overwhelmed each month, and that is of course not a good thing for your credit score. A student loan consolidation program aims at helping you manage your student debt better.

Choosing to go for student loan consolidation program is definitely a wise choice as you get to combine all your loans under one loan program, making it easier for you make single repayments once a month. Imagine not having to worry about multiple repayment dates and late payment fees? It truly is the perfect situation for a student to be in, although you must keep in mind that consolidation may not be the best answer for every student. So make sure to do plenty of due diligence before signing the dotted line.

Before consolidating all your student loans, it is important to understand the key factors of a student loan consolidation program.

How does a student loan consolidation program work?

A student loan consolidation program combines all your existing student loans into one loan program, giving you the ease and convenience of having to deal with one lender. Suppose you have 5 separate student loans, you can combine all of them under a new loan program. What this program does is “clear” all the payments for each of the 5 loans and offers you a new loan. The main idea is to clear the payments for your outstanding student loans into a single, easy to manage consolidation loan. This also results in easier to manage finances each month with just one payment and due date to deal with as opposed to several.

How will a student loan consolidation program help me?

When you consolidate your existing student loans, you can negotiate for a lower interest rate. This helps you save a considerable amount of money. Since you will have only one payment each month, you will have less of a financial burden on your shoulders. As soon as you graduate, you don’t want to be burdened by a heavy amount of debt and high monthly payments. A student loan consolidation program can come of great use by offering suitable repayment options; you could also choose to extend the period of your loan to reduce monthly payments – Usually to 10 years or more.

Student loan consolidation is an ideal financial option for the struggling student eager to complete his/her education without too many financial hassles after graduation. It is highly recommended for students to first carefully look into the terms and conditions of any consolidated loan programs before going for it.

Joe Eitel is an accomplished freelance writer who is an expert in the student loan consolidation field. If you’d like to learn more about student loan consolidation programs or other student loan related topics, visit: Consolidating Student Loans

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Joe Eitel - EzineArticles Expert Author

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