Consolidating student loan - Tips For Consolidating Student Loan

If you are a student and you have student loans, it is quite possible to consolidate your student loan. Did you know that consolidating student loan can reduce your monthly payments by up to 42 percent? However, this consolidation is only possible for federal student loans.

When you opt for consolidating your student loan, it is quite possible that might be able to extend the repayment term from the standard 10 years to up to 30 years. This means that the amount you would have to repay each month dramatically reduces, giving you more money to save, spend or pay back other debts.

There are many organizations that help students to consolidate their loans. These organizations offer many benefits for those looking to consolidate their loans. Some of these benefits are no credit checks, fixed interest rates, lower monthly payments, longer repayment terms, one single payment for multiple student loans and deferred payments.

Many student loans that were taken prior to July 1, 2006 are variable rate student loans. So, if you have loan like this, you will benefit from consolidating it, especially now as interest rates are very high and you must be paying quite a chunk on your loan.

Consolidation also helps those students who have multiple student loans. They have to constantly keep up with multiple due dates, many lenders and of course the multiple monthly payments. Consolidation helps you bundle up all the federal student loans into one single loan and you just have to make one payment each month to cover this loan. In addition, you will benefit from the fixed interest rate and this means you will know exactly what you have to pay each month for the entire term of the loan.