Student Loan Consolidation: Three Things to Think About

As times get tougher, it makes sense to look closely at every area of expenditure. For many, student debt is a real burden. So consolidating student loans may be an excellent idea. But it is important to do a little homework first.
1. Understand the existing loan(s)Before doing anything else, people considering student loan consolidation should first find the documentation for their existing loan(s). They should then check through the agreement's terms and conditions, and determine current balances, interest rates, and monthly repayments. Those who have a problem finding the necessary paperwork about their Title IV loans and grants can consult the US Education Department's National Student Loan Data System (NSLDS).
2. Understand the problemPresumably, those considering student loan consolidation are facing pressing financial problems. But it is important to understand fully the nature of those problems. They should draw up a realistic list of their monthly outgoings and set those against their income. If the issues they face are short-term difficulties, then they may well be better off talking to their existing lender(s) or loan servicer(s) to see if they are eligible for deferment or forbearance relief that could tide them over until things get better. If those issues are more fundamental, and are clearly going to continue for a long period, then they should explore student debt consolidation options.
3. Understand the implications of student debt consolidationWhen times are hard, people often feel so desperate that they are prepared to sacrifice their long-term interests in order to alleviate short-term debt pressures. This is understandable, but better avoided. Reportedly, some student loan borrowers can cut their monthly repayments by as much as 58 percent. However, because a consolidated loan is likely to last much longer than an ordinary student loan, the total amount of interest payable over its life will almost invariably be higher. In fact, the Federal Student Aid web site warns that: "…in some situations, consolidation can double your total interest expense."There are other considerations to be borne in mind. For example, once loans are consolidated, that is it: the arrangement cannot be ‘unmade’ because the original loans have been paid off and no longer exist. And the timing of consolidation can be important. The interest rate for many student loan consolidations is a fixed one, which is great when rates are rising. But right now they are falling. If it is possible to wait a few weeks or months, it may be possible to consolidate at a record-low fixed rate.Student loan consolidation can transform an individual's finances and make his or her life immeasurably better. However, it is always risky to enter any long-term loan agreement without first fully understanding the implications.

About Author:
For 25 years, Peter Andrew has been a writer specializing in topics surrounding ICT, marketing, management, and business. He began writing professionally when he worked for a large, multinational advertising agency, and still creates business documents, and marketing materials, as well as editorial matter. He lived in London, England, for most of his life, but recently moved to rural France. So far, he is very much enjoying his new, slower, gentler way of life.

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Graduate School Loans is the leader in education finance solutions for graduate students. We are committed to providing graduate students with the necessary tools and information to effectively manage your education debt. Graduate School Loans is here to assist you finance your graduate school education. Upon graduation, Graduate School Loans offers education debt management options to aid in the repayment of your graduate student loans. You will find the products and services we offer invaluable to a financial sound future. Graduate School Loans Federal Loan ConsolidationBy consolidating your federal student loans with Graduate School Loans, you can lower your monthly payment, which can save you hundreds of dollars each month. In addition, consolidating your graduate school loans allows you to include your undergraduate loans or previously consolidated loans, permitting you to make one low monthly payment. Learn more... Graduate School Loans Private Loan ConsolidationAt Graduate School Loans, we understand the high cost of graduate school, which is why we offer consolidation of private education debt. Manage your education debt and repayment with a Graduate School Loans Private Loan Consolidation. NEW!!! Now, when you apply for a Graduate School Loans Private Student Loan Consolidation, you'll get 30 days free access to a Crossing job-search website of your choice! That's a $29.95 value. Learn more... News and ResourcesFind all the information you need regarding graduate school funding, education finance, and debt management. Also, keep current with our industry news updates. ArticlesSearch through our database of articles covering various graduate school topics including graduate school funding, graduate school programs, and graduate school lifestyle. Graduate School Loans is dedicated to educating graduate students about the student loan industry and keeping you up to date about changes in legislation and regulations. Here, you'll find everything you need to stay informed. Government RelationsAs an authorized lender under the Federal Family Education Loan Program (FFELP), Graduate School Loans is committed to adhering to government policies and regulations. We work endlessly to ensure your paperwork is administered under strict compliance with federal and state legislation. To this end, we have gathered information about the FFEL Program to make all procedures and protocol as transparent as possible. Graduate School Loans wants you to be informed about your student loans so that your decisions will make for a sound financial future. Financial Aid ProfessionalsYour role is a crucial one in higher education. You are the link between the cost of attaining higher education and the culmination of a successful career. Graduate School Loans recognizes your role and is committed to assisting you and your students. We have outlined the products and services we offer along with the benefits your students will receive when they choose to consolidate their education loans with Graduate School Loans.

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Private student loans help 'fill the gap' in your financial aid package. Private loans allow you to borrow the difference between what Federal aid can cover, and the true cost of your education.
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The Student Loans Company (SLC) is a UK public sector organisation established to provide financial services, in terms of loans and grants, to over one million students annually, in colleges and universities across the four education systems of England, Northern Ireland, Scotland and Wales.

Our other key responsibility is the administration of the collection of repayments, from over two million customers no longer in higher education.

This website provides easy access to