| What is something that every college graduate wants | | | | goes out and pays off all your existing college loans to |
| to do? Save money! Learning the benefits of | | | | the other three lenders and gives you one loan at an |
| consolidating college loans can save you a | | | | interest rate of 5%. As you can see, you have just |
| considerable amount of money. Over the length of the | | | | saved a considerable amount of money over the |
| loan you could save thousands of dollars that could | | | | length of the loan. |
| have been saved for a new apartment, a new house, | | | | To put some reality to this let's say you have a loan |
| even a wedding. But the first thing you need to | | | | for $35,000. You pay about $350 per month. You also |
| understand is how consolidating college loans work. | | | | have another loan for $5,000 and pay around $80 per |
| First let's focus on what it means to consolidate a | | | | month. So right now, you are paying $430 per month |
| college loan. What you are really doing is taking all of | | | | on college loans. By consolidating your college loans, |
| your existing college loans and combining them. You | | | | you could be paying around $230 per month from only |
| are creating one loan that's made up of all your college | | | | one single lender. You have just saved $200 per |
| loans giving you one payment per month to pay rather | | | | month, or $2,400 per year, and over the length of a 10 |
| than worrying abuot two, three, or four different | | | | year loan that's $24,000 in savings! By going with one |
| payments. | | | | lender, you are lowering the amount of interest you |
| So let's talk about how this actually works and how | | | | are paying and save thousands of dollars. |
| consolidating can benefit you. Many graduates have | | | | Now, before you call that number you got from the |
| multiple lenders for their college loans. Lender A gives | | | | letter you just received in the mail saying "Consolidate |
| you a loan and an interest rate of 6%. So for the | | | | Your College Loans Now", you need to do some |
| amount of this one college loan, you are paying 6% on | | | | research. You could call an existing lender if you wish, |
| this every year. However, that only covered tuition and | | | | or you can find some websites online. There are plenty |
| you still need a loan to cover living expenses. So you | | | | of sites out there with lenders who can help. Just |
| take out another loan with Lender B who gives you a | | | | make sure you analyze each one and find out what |
| better interest rate at 5%. And finally, at the end of | | | | interest rates they will be charging you as well as any |
| your senior year, you realize you need extra credits to | | | | other fees that might be part of the deal. This is just |
| graduate, so you end up taking out another college | | | | as important as anything else so make sure you are |
| loan from Lender C at a rate of 5.5% interest to cover | | | | getting the best deal possible from a lender! This is |
| summer classes. | | | | why it's important to compare a few of them. We're |
| Wow, that's alot of loans to pay every month! So, to | | | | talking about the money that you earned working 40+ |
| save some money, you decide to go to Lender D and | | | | hours per week, so make sure you're not giving away |
| ask them to consolidate your college loans. Lender D | | | | too much of your hard earned money! |