College Student Loan Consolidation Information
i Student Loan ARTICLE
So you have finally made it through all of your classes, you wore the cap and gown, and got your diploma. You are ready to begin the career you have worked so hard to achieve. AND start paying off your school loans. It may have taken several different loans, from different sources. Now the question is - how do you keep up with all the different payments?
The answer is to consolidate your college student loans. This can not only reduce the number of payments you make every month, but also the likelihood that you will forget to pay one or more of them. Most Federal loans you hold are eligible to be consolidated, depending on the terms.
The terms of consolidating your loans come in many different forms and options. The first thing to consider is the actual percentage rate you will be paying on the loan. Each loan has an individual interest rate. When you consolidate those college student loans, the individual percentage of interest is rounded up to the nearest 1/8 of a percent.
The interest on a student consolidation loan will fall somewhere in the middle of the rates you are currently paying. Therefore, if you are asked to pay MORE than your average interest rate, beware. You will not always save money by having a lower interest rate than your highest current rate.