Student Loan Consolidation Tips and Resources

Student loan consolidation can provide financial relief toloan payments in full; being current on all loan
graduates carrying multiple college loans. Graduatespayments; and waiting six months from the date of
can consolidate both federal and private educationgraduation before applying for a consolidation loan.
loans to reduce interest rates and monthly paymentPost graduates with Sallie Mae financing must apply
amounts.for consolidation loans through a conventional lender.
Most people use student loan consolidation to eliminateAt present, Sallie Mae is no longer participating in the
multiple payments. This can be particularly helpful forfederal loan consolidation program due to legislative
medical and law school graduates who often have sixcuts made by Congress.
or more loans. Upon graduation, students must allocateStudents with Sallie Mae education loans can obtain
funds to cover each installment as well as keep trackcounseling with a repayment specialist to find out
of multiple payment dates. When post graduateswhich refinancing options exist. Student loan payment
submit late payments they are subjected to late feesprogram details are provided at
and run the risk of damaging their credit rating.When borrowers consolidate education loans they
There are several factors to consider whenmust apply for a new loan to pay off outstanding
consolidating college tuition loans. It is a good idea tostudent loans. Nearly all private and federal loans can
conduct research or work with a financial consultant tobe consolidated including: Perkins, Stafford, Direct,
weigh the pros and cons of college loan consolidation.Guaranteed, and Health Professional.
The Internet can be a good source for understandingThe U.S. government offers a sponsored student loan
the intricacies of consolidating loans, as well as to shopconsolidation program for graduates who obtained
and compare lenders.financing through Direct Loans. This program is a good
Students with both subsidized and unsubsidized loanschoice for students with bad credit because applicants
will have different needs than graduates carrying oneare not required to undergo credit checks. Program
type of financing. Although subsidized and unsubsidizeddetails are provided at LoanConsolidation.ed.gov.
loans can be consolidated, lenders must consolidateLast, but not least, post graduates should research loan
the two using two separate loans in order to trackconsolidation alternatives such as forbearance
payment transactions. However, borrowers will haveprograms, tuition deferment, and student loan
one monthly payment and lenders contributeforgiveness. Debt forgiveness programs are available
appropriate amounts to each account.to graduates who hold degrees and obtain
Graduates must meet lending criteria in order toemployment in public service fields such as education,
consolidate federal student loans. Eligibility criteriamedical and law. Loan consolidation alternatives are
involves having an adequate FICO score; paying threepresented at CollegeScholarship.org.