| Nowadays, the cost of higher education is getting | | | | consolidation comes in. |
| more and more expensive. Some families may not be | | | | Student loan consolidation basically consolidates all |
| able to afford to send their son or daughter for further | | | | your student loans into one loan so that it is easier to |
| education. Getting a student loan will help. | | | | manage and make payments. When you are getting a |
| There are 2 broad categories of student loans | | | | student loan consolidation whether from the |
| available. Government student loans and private | | | | government or the private market, your existing |
| student loans | | | | student loans are paid for and erased by the student |
| Government or federal student loans are funded and | | | | loan consolidation lender. The balances are transferred |
| administered by the US Department Of Education. It is | | | | to the new student loan consolidation. Thus you start a |
| classified under Federal Student Loans Aid Program. | | | | new loan and only needs to make a single payment |
| They have very few requirements other than you are | | | | each month. |
| studying in a US college or university. International | | | | There are many advantages to using student loan |
| students may also apply though approval is on a case | | | | consolidation. The interest rates will be lower since it |
| by case basis. | | | | takes the average interest rates of your previous |
| Every year, the student loan aid program disburse | | | | student loans. Thus due to government legislation, the |
| nearly 60 billion dollars so it is a good choice for get a | | | | maximum interest rate cannot be higher than 8.25 |
| student loan from the government. Thus the interest | | | | percent. |
| rates are pretty low. | | | | It becomes a lot easier to manage a single student |
| Private student loans are funded and administered by | | | | loan and payment are easier. The repayment options |
| banks and other financial institutions. These lenders | | | | are quite flexible. For federal student loan consolidation, |
| provide student loans at a higher interest rate | | | | you can opt to start repaying after you have |
| compared to federal student loans. Some common | | | | graduated from school. There are also several other |
| student loans available are from Citibank and Sallie | | | | options. |
| Mae | | | | Another beneficial side-effect of student loan |
| You are allowed to apply for both private and federal | | | | consolidation is that it can also improves your credit |
| student loans for your education needs although I | | | | score. Since you are effectively clearing all your old |
| would not recommend it. | | | | student loans and taking a new one, your credit score |
| For some students who have a few student loans to | | | | will increase and is important if plan to take other types |
| repay concurrently, it can be a financial drain on their | | | | of loans in the future. |
| family finances. That is where student loan | | | | |