Students Loan Consolidation Program Information

What is student loan consolidation? Gone are the days when education was very cheap. In the modern world, the expense on education has increased like never before, which has compelled everyone to undertake a student loan. Hence, after graduation most of us carry a huge financial burden of repaying this loan. Now think what will happen, if this loan gets added with other responsibilities like mortgage, car payments, and rent and, may be some obligations?
Examining and researching alternatives that could help you out with this financial burden has been considered the best idea by many experts. They believe that the best place to start this is your student loan.
Universities and colleges use several of the sources to secure loan for the student. Usually, one bank does not issue long period loans, like a four year loan or one year loan. Basically, multiple funds from several lending institutes are required to get through his college. That is the reason why to repay the loans you end up in writing multiple checks per month. No doubt, they carry different billing cycles and at the same time different interest rates.
Few months in the beginning it would go all fine but a time will come when everything would go haywire. So, to keep yourself out of such situation, make sure that you have taken the help of student loan consolidation. However, if you are taking help of this system it does not mean that you need to be in financial crisis. It is just smart and neat money management.
Actually, when you consolidate student loans you get a new loan, with the help of which you can pay off other multiple loans. The benefit of this is that you need to pay one bill instead of so many. In short, your life will get simplified to large extent.
Advantages
Apart from helping you out of multiple checks, there are also other advantages of student loan consolidation.
• If your consolidation interest loan rate student is less than the average of your multiple loans taken together, you will be able to pay a lower monthly installment to the lender. This saved money can be invested somewhere.
• Might be you could avail some more features like free last month, rebates and other attractive incentives from the new lending institution.
• Consolidation loan student also helps you avoid bad mark in your credit report as here you would be paying all your loans on time.
Disadvantages
There are also some drawbacks of student loan consolidation that you should consider before you speak to a smooth-talking consolidation counselor.
• Lower monthly payment does not always means that you would be able to save money. In certain cases, you do get a lower monthly repayment but at the stake of longer repayment duration. Longer repayment period means higher loan cost.
• There might be attached some hidden clauses with the student loan consolidation.
A best consolidation loan student can save you a lot of money and at the same time ease your financial burden. However, always remember to shop for your student loan consolidation and compare price just like you do with while buying some financial products.

Can you save your money when you study? Here are a few important points about how you can save money on your student loan read this article carefully and follow this check list. these are simple techniques on how you can save money. If you are close to nearing graduation you properly want to consolidate your loans through the Federal Loan Consolidation Program to lower your monthly payments up to 50%.this checklist will help you handle your student Loan 1.Student Loan Interest Rate: Keep a watch on your Loan interest rate, your interest rate changes every July 1st and are variable you can lock your interest rate by consolidating your student loan now. 2.Use Automatic Payment: By using automatic Payment you ensure that your Loan Payments are made on time, there is no possibility of you missing out on a payment unless there is no money in your account, you also don?t have to worry about Writing checks every month. 3 Pay your Student Loan on time: Don?t delay or be behind in making your loan Payment, if you think you are in trouble and cannot make payment on time contact your loan servicer and find out if you are eligible for deferment, because remember late payment of student loans will negatively affect your credit. 4. choose a good Payment option: There are multiple payment plans available for your student loan you need to choose the best payment plan as per your financial situation. 5. Get rewarded for your student loans: There are a few lenders or service providers will often give you a borrowers interest, so if you pay your loan on time for a specified period you get rewarded for it. If you are thinking about using college loan consolidation to possibly lower your monthly loan payments, then now is the time to start consolidating and lowering those payments. Never in recent history have the interest rates on student loan consolidations been quite as low as they are these days. What does that mean for you? Quite simply, you will be receiving the best available deals for debt consolidation when you choose to consolidate your student loans now and here. Whether you have just a small amount of loan debt or a very large amount, consolidation can start helping you to lower your monthly payments NOW if you get started on it right away. There is some good news for those of you who have not graduated as yet under the new rules student dont have to wait to graduate to consolidate their student loan. Which loans should you consolidate? You can consolidate Perkins, Stafford and PLUS loans (parent loans for students) and even some previously consolidated loans. Unfortunately, you cannot consolidate private loans that are not federally guaranteed. Also, most lenders will only consolidate loans for students with loan balances of at least $7,500. For most of you, this threshold won't be a problem. According to a recent Nellie Mae study, the average student upon graduation owes an average of $18,900 in student loans.

Do you Study in US? More US students are now taking advantage of college student loan consolidation rates than ever before. Such rates are considered highly competitive and can easily be had from either a private or government lending agency found online or all over the country.
A prospective borrower can effective choose among thousands of lenders the best one by checking the most competitive college student loan consolidation interest rates that is offered to him. Today, it is definitely a must that student consider rates as an important factor when he consolidates college loans. As it is, most lenders readily make their loans available. However, many of them still charge exorbitant rates which can be debilitating to the financial status of the borrower.
Merged loans coupled with low interest rates both aid borrowers to becoming responsible payers. This is because with college student loan consolidation, old debts disappear. Actually, this is not exactly the case as the previous loans are just replaced by a new consolidation loan. This new debt situation means there is no more reason to worry about the multiple payments that borrowers need to face every month.
With the merging of loans, the borrowers have only to take care of a much easier payment responsibility of single monthly installment coupled with a lower college student loan consolidation rate.
The process can be quite easy if you consolidate college loans in the proper way. The best thing to do is scrutinize the credibility of the lending company and check the requirements that it will ask from you. Many lenders actually want to make it easy for the borrowers and simply ask for minimum requirements.
Remember also that the best college student loan consolidation rates are not the only ones important when trying to fix and merge your burdensome school debts. You have to make sure you are given by your lender easy and affordable loan repayment options.
For more articles and discussion on topics such as student loan consolidation rates and college loans in general, do visit our Easy College Loan Consolidation blog.

You dont have money to continue your study, do you? For those students wishing to get a college education who do not qualify for scholarships and who cannot work who can’t work enough to cover their college expenses, student loans can provide an answer. While borrowing money is never the ideal way to pay for anything, there are hundreds of thousands of people for whom a college education would have remained out of reach were it not for student loans. Even state colleges and universities can cost state residents upwards of $15,000 per year.
While student loans may clear the path to a college degree for you, you will eventually come to the end of that path and have to start repaying the loans. You’ll also be at the beginning of your career, and probably have the expenses associated with setting up housekeeping on your own, funding your own transportation, and managing all your own finances. Your starting salary may barely get the living essentials covered, and having those student loans hanging over you can keep you struggling for a very long time.
Benefits Of College Loan Consolidation
But there is help. College loan consolidation is one method of reducing the financial burden of those student loans. College loan consolidation will allow you to take out a single large loan with which you can pay off all your student loans, so that instead of having to make several payments each month, you only need to make one. And you may find that the monthly payment on your college loan consolidation is less than the total of those for your student loans.
A college loan consolidation may also benefit you in the form of lower interest payments, so that you pay down the principal more quickly than you would have if you continued paying off your student loans individually. Student loans are notorious for having varying interest rates, and the odds are excellent that some of yours will be costing you more in monthly interest charges than a college loan consolidation will.
The benefits of college loan consolidation are numerous: lower interest rates; lower monthly installments; a lower payoff amount; or possibly all three. Getting a lower APR means that the total amount of money you repay over the life of the college loan consolidation will be less than what you would have paid for your student loans. The Single Payment Advantage
And it will save you the hassle of having to make sure, several times each month, that you have enough in your checking account to cover you upcoming student loan payment. If you only have one monthly payment, you can set aside enough to cover it at the beginning of the month and be done with it. You can even make arrangements for your college loan consolidation payment to be electronically deducted from you bank account each month and forget abut the check writing altogether!

When it comes time to consolidate student loan debt, a person should take several things into consideration. Most importantly, they should be able to look at the different student loan consolidation services available to ensure that they are getting the best rates possible. Paying back student loans can be a difficult thing to go through, especially the initial process of consolidating the loans. Once this is done, paying back the student loans can be as easy as one payment a month. The great thing about a student loan consolidation is that it reduces the amount of monthly payments to make it more manageable to pay back the debt. Working with the right student loan consolidation services will make the process that much more convenient and easier to manage. Also, the student will likely have questions throughout the loan repayment; working with a student loan company will help to answer those questions.
When a student is about to consolidate their student loans, they should compare the interest rates of the different companies before they go with a particular one. Different student loan consolidation services will be able to help a student through the entire process and can answer any questions that they might have. For many students, the consolidation company will be able to explain the process and everything that will be expected. Having a student loan company that is willing to help and to work with the student is an important thing to have. No one likes to go through the process and it can be difficult sometimes. It is important to find the company that is willing to make the process as convenient as possible. Many student loan companies will be able to take a lot of the pressure off of the student. When a student finds the company that can do that, they should begin to consolidate their student loans.
When consolidating student loan debt, it should be done within the student’s grace period, before they have to begin paying back their student loans. By getting a student loan consolidation, the student will have time to worry about other things that come with graduation- life. When a student consolidates their debt, they will be able to manage their money and they can plan out their budget every month. The student loan company pays off all of the student loans and consolidates them into a large loan. From there, the student simply has to pay off a part of the loan each month. There are different options of payment plans that a person can choose from to pay back their loans. When the student loan company sits down with the student, they will be able to offer the best choices based on the student’s financial situation.
There are many things that a person has to consider when they begin looking at the different companies and what each company has to offer. The two most important things are the interest rates being offered and the amount of customer service that the company is willing to provide to the student. These two will make the difference between easy an student loan process, and a difficult one.

Below, you'll find extensive information on leading Student Loan Consolidation articles and products to help you on your way to success.
Student Loan Consolidation Is Insurance Against Rising Interest Rates
In a recent article by Peter Svenssen, the Associated Press is projecting a possible student loan rate increase later this year of 1.2% for the 2005 - 2006 school year (July 1, 2005 - June 30, 2006) based on current US Treasury yields. Today's Stafford Loan repayment rate of 3.37% could increase to 4.57%, while PLUS Loan rates could increase from 4.17% to 5.37%. What does this mean for today's graduates? Over the span of a 10 year Stafford Loan repayment term on $18,900 in loans, a college graduate would pay $2,760.01 in interest at 2.77%, while that graduate would pay $4,062.40 in interest at 4%, a difference of $1,302.39, or about the price of a laptop computer. If graduates were to consolidate their federal student loans today, they'd be able to lock in today's rates before they change. Christopher Penn, associate director of StudentLoanConsolidator.com, urges graduates not to wait another minute to consolidate their student loans. A graduate with $18,900 would have a monthly payment of roughly $196.51 before consolidating at the projected 4.57% rate.
Mr. Penn said, "If you consolidate today, right now, right this minute, you would have a monthly payment of $129.39. Consolidating would save you $67.12 a month, or $805.44 a year. Could you use an extra $805 a year? I know I could. "What about students who are still in school? Mr. Penn said that some student loan consolidation companies can "reserve" an application for current students.
If students apply now and graduate before July 1, 2005, they can receive the current interest rates, but they must apply before July 1, and preferably sooner rather than later. "With no credit checks, no fees, and no early repayment penalties, there's absolutely no reason for graduates not to consolidate their loans. However, graduates need to act now," urges Mr. Penn. "Very often, graduates wait until the last minute to file their paperwork and by then, they may not be able to insulate themselves from a drastic rate change. The earlier you apply, the better off you will be, as you'll begin saving more each month immediately. "Students wishing to file a consolidation application should do so. Contact Christopher Penn at StudentLoanConsolidator.com by email at e-mail protected from spam bots for more information; to apply for a student loan consolidation, graduates should visit as soon as possible.StudentLoanConsolidator.com is a service of the Edvisors Network, a multi-national education services company offering students options for managing the entire education life cycle, from getting into their college of choice to financing their education and beyond.
We strive to provide only quality articles, so if there is a specific topic related to student loan that you would like us to cover, please contact us at any time. And again, thank you to those contributing daily to our Student Loan Consolidation Articles.

So you can’t afford your current student loan payments? Maybe you just graduated, maybe you lost your job - there are a myriad of reasons.
Here are your options
Consolidate! You’ve just graduated with a lot of debt and can’t afford to pay it all. You probably want to consolidate your loans. This will lengthen the repayment period, and you’ll pay more interest over the life of the loan, but it can shrink your monthly payments by quite a bit. Also, the longer repayment periods aren’t a bad thing necessarily as federal loans can be paid early with no prepayment penalty! Deferment! This is where your loan company give you a temporary reprieve. Essentially, you are allowed to stop paying monthly payments for an agreed-upon period of time. For this, you MUST call your loan company and you must qualify for this. For example, you’ve gone back to school, lost your job or work for the Peace Corp. Forbearance! Forbearance is for those who have difficulty repaying their loans but don’t qualify for deferment, which has stricter guidelines. Payments are postponed or reduced temporarily, and interest accrues while you are in forbearance. You MUST call your loan company for this also. Yes, this talks a lot about calling your loan company. No, the loan company is not the enemy her. I mean, really - lets think about this logically - they don’t want your loans to go into default any more than you do as it hurts their bottom line. It’s in their best interests to help you through your time of need and keep you on a repayment schedule of some sort. If you hit the skids, call your loan company, they may be more help than you ever imagined.
And DO NOT let your loans go into default, it will haunt you for years!!!!

It’s a worrying time for current and prospective students. Figures from the Prudential, show that a third of UK university students have considered abandoning their studies due to the financial strain they have encountered. It is not surprising that many prospective students are finding the need to seriously think through the merits of going to university. With the increase in course fees, alongside decreases in government financial support, the current crop of graduates can expect huge debts (currently averaging over £13,000) when they enter the employment market, which they hope will reward them with a highly paid job. However, as more students get pushed on to the higher education production line and undertake degrees, the once elitist qualification becomes devalued. Suddenly employers find themselves surrounded by graduates of ambiguous quality. Prestigious highly-paid careers are rare these days and graduates find themselves increasingly under pressure to jump through a number of hoops, with many interviews relying on an individual’s ability to sell himself, rather than the basis of the academic work.Students need to take responsibility for their own finances, while the government seeks our recognition of its actions (educating the unemployed is good for the books … and votes), without the state taking on responsibility (“it’s an investment in your own future”).Too many want to bury their heads in the sand and wait for a lottery win to make it all better. With over one trillion pounds of personal debt in the UK, students need to realise that the, "it could be you!" they pray for, is actually an "it is you … in debt" … with trapped wind more likely than wind-fall. Part of the problem is hopeful expectation (alias denial), part is a fear of controlling your own personal finances (alias apathy), and part is a lack of knowledge (alias ignorance). The first one is difficult, and needs to be overcome by the individual. The other two however can both be overcome by looking for help. Sources of information need to be made available, actively promoted and sought out by consumers.It’s not like the information isn’t there… there are plenty of financial product comparison sites loaded with information (and pictures). The Financial Services Authority has its own finance help information for consumers. As the saying goes, "Seek and you shall find". It may be a hard lesson, but it is one that we must all currently embrace.

Recent findings from the Educational Policy Institute indicated that the UK is the third most expensive place in the world to go to university. Combine this with figures from the Prudential, showing that a third of university students have considered abandoning their studies due to the financial strain they have encountered, and it is not surprising that many prospective students are finding the need to seriously think through the merits of going to University. Whilst it is true that there are currently loans available from both the government and from banks that are designed to see students through their period of studies, for many this will mean emerging into their adult life with mountains of debt. Barclays Bank has stated it believes that once top-up fees are introduced it will cost about £33,000 to put a child through university in England and Wales. At a time when the number of students has greatly increased and the number of high paid graduate careers appears to have diminished, students now have to factor in the cost of living when making the important decision of where to study. In an article by the Scotland On Sunday, the experiences of a university student from Glasgow show that the question of finance already weighs heavy for some students in their choices of where, or even if, they can study. Moving out of the parental home to take full advantage of university life may become less of an option for students as costs increase and financial assistance decreases.The president of the National Union of Students in Scotland, Melanie Ward, said: "I think most students underestimate the amount of debt they will leave university with, which will be above £13,000." With graduates needing to earn £22,000 a year in order to pay off anything more than just the interest on their student loans, many people are in their 30s or even 40s before their debt is fully cleared. Graduates are also finding that they have to make tough decisions as soon as they complete their courses. With banks, building societies, credit card companies, and other private sector lenders requiring the sums borrowed to be repaid. The immediate question of, “Do I build on the knowledge, work experience and internships, that I've had over the last few years and pursue my dream career, or does the chasing of the perfect job I’ve been working towards for years, have to take second place to getting back into the black?”, is now an all too intrusive reality for many.Some students are finding it so difficult to make ends meet that they are trying to seek alternative means of resolving their debt. Checkmyfile has shown that that the number of students declaring themselves bankrupt tripled in 2004. Another method of reducing graduate debt is getting the loans written off through undergraduate bursary programmes by the military or teacher training, in return for agreeing to a placement period following graduation. There are however some potentially serious drawbacks to both types of schemes. These include possible damage to future career prospects or compulsory placement period in a career which the graduate does not want to proceed with long-term.All is not doom and gloom however, with university authorities and the Students’ Union offering advice at college, and after graduation. Public sector organisations like the Citizens Advice Bureau can provide advice if real difficulties occur. Speaking directly to your lenders can often resolve problems. Switching between loans and credit cards is a good way to help reduce interest payments. Financial websites like Moneynet can provide a useful source of information by enabling students and graduates to see which loan or credit card provider is currently offering the best deal and 0% introductory rate.It seems budgeting and hard decisions are required by all potential students these days, with a degree in personal finance a desirable pre-requisite before starting actual studies.

A college loan has given people all over the United States a chance to further their education, even if they are not making a lot of money. Education loans can be a big help in paying for college. You'll find these loans offer a low interest rate and a generous repayment period. Of course, student loans must be repaid, usually with interest, although some education loans have provisions for cancellation if the borrower performs a program-related service. If you are looking for a loan, be aware that there are many different types of loans. Try to find the student loan that fits you the best. For example, there is a loan called the Federal Stafford Loan. The Federal Stafford Loan is the most widely used loan in the student education loan program. Federal guidelines limit the maximum interest rate to no more than 8.25% and outline repayment terms of up to 10 years. Remember that if you ever need help or are falling behind on payments, consider a consolidate student loan.
Tips on getting a deferment for your College Loan.
If for some reason you are unable to meet your monthly payments, consider a college loan deferment. A deferment is a suspension of payments for special reasons. Usually, those who borrowed their first Stafford Loans after July 1, 1993, are eligible to defer payments if are enrolled in at least half-time at an eligible school, unemployed, in a graduate fellowship program, in a rehabilitation training program for people with disabilities, or suffering economic hardship. A college education is expensive, but with the right student loan you will be attending class without financial worry in no time!

Many people are looking to consolidate debt online because they're short on time and money. However, it's important to proceed with caution. Take the time to explore what's available and decide upon the best course of action for you.
Some people are motivated to consolidate debt online because they know they can save a lot of money by taking advantage of low interest rates. Others are panicking to find a quick and easy solution to help them deal with a mountain of debt.
Whatever your motivations, a decision to consolidate debt online may be the solution but before you make your decision or offer detailed personal information to debt consolidation companies check to see what they have to offer.
Don't consolidate debt online with the first company that promises to get you out of debt or help reach your goals quickly. If their promises sound too good to be true, you can bet they are.
The Better Business Bureau has received tens of thousands of complaints from consumers that have fallen prey to false representation and unethical practices of some debt management companies.
Whether you want to consolidate online or deal with a debt management company face to face consider the following tips:
* Find out if the company you want to deal with has a good record with related consumer agencies such as the Better Business Bureau.
* Stay clear of companies that fail to offer you a free consultation or those that offer a free consultation which includes little more than a sales pitch that promises to solve your problems if you sign up with them. You want someone who will thoroughly discuss your financial situation, needs and options.
* Don't give your business to companies that charge large, up-front fees to set up or manage the financial option you choose. A modest processing, application or credit report fee may be required though.
* Get all your questions answered and find out what the terms are. Companies that offer high interest rate loans with harsh conditions and penalties built into the consolidation loan are often the same high pressure companies that promise you the moon.
* Find out if the staff that you are dealing with is trained and/or certified to help consumers deal with personal finance issues such as credit, debt, budgeting, bankruptcy and so on. You only want to deal with trained, courteous and accessible staff members.
* Never give out your personal information unless you are familiar with the company, know why they require it and can provide it via a secure server if you're communicating online.
* Be leery of and certainly don't pay anyone that promises to repair your credit without finding out how they can do it legally and how you can do it yourself for free.
So is it safe to consolidate debt online?
Yes, it can be. By all means surf around the net to discover the best place for you to consolidate debt online. Before you decide on a company, do a background check, get all your questions answered and follow the above tips to protect yourself as you work to achieve your financial goals.

The Pros And Cons Of Government Student Loan Consolidation
Your college or university days may be behind you but if you received federal student loans from the US Department of Education (ED) along the way you now have to deal with paying them back. To avoid repayment problems it’s important to learn how to manage your student loan debt. One of the best ways is a government student loan consolidation.
For starters consolidation allows you to simplify the repayment process by combining several types of federal education loans into one government student loan consolidation so you make just one payment a month. The benefit to this is that your new monthly payment may even be lower than what you’re currently paying.
Typically student loans are paid over a period of time between 15 and 30 years. The interest that accompanies these students loans is variable. The downside to this is that with a long term plan, in years 15 to 30 you may end up having to pay significantly higher rates of interest than you did in years one to 15 since interest rates traditionally rise over time.
However, a government student loan consolidation secures a student’s interest rate. A fixed loan program means that students can obtain a government student loan consolidation at an excellent rate. For students with high debt, this fixed interest rate loan can literally save thousands of dollars in interest payments over the life of the repayment period.
The Higher Education Act (HEA) provides for a loan consolidation program under both the Federal Family Education Loan (FFEL) Programs and the Direct Loan Program. Under these programs, a borrower’s loans are paid off and a new government student consolidation loan is created.
Both of these programs simplify loan repayment by combining several types of Federal education loans into one new government student loan consolidation product. Please note that even if your loans have different terms and repayment schedules or may have been by different lenders chances are good they are still eligible for a government student loan consolidation.
And, the interest rate on the government student loan consolidation may be significantly lower than one or more of your underlying loans. Further, the monthly amount on a government student loan consolidation is usually lower as the amount of time to repay may be extended beyond the terms of your separate loans. The bottom line is these features should result in a more manageable student loan debt. Additionally borrowers who opt for goverment student loan consolidation are less prone to default.
You can get a direct consolidation loan, available from ED, or a Federal (FFEL) Consolidation Loan, available from participating FFEL lenders. Under either program, the loan holder pays off the existing loans and makes one consolidation loan to replace them. If you have subsidized and unsubsidized loans, they’ll be grouped accordingly when you initialize your government student loan consolidation so you won’t lose your interest subsidy on the subsidized loans.There are three categories of direct consolidation loans: Direct Subsidized Consolidation Loans, Direct Unsubsidized Consolidation Loans, and Direct PLUS Consolidation Loans. If you have loans from more than one category, you still have only one direct government student consolidation loan and make only one monthly payment.Under the FFEL Program, you can receive a subsidized and/or an unsubsidized FFEL Consolidation Loan, depending on the types of loans you're consolidating. (FFEL PLUS Consolidation Loans are included under the Unsubsidized FFEL Consolidation Loan category.)
Both FFEL and Direct Consolidation Loans have the same interest rate, which is a fixed rate set according to a formula established by law. The rate is the weighted average rate of the current rates charged on the loans being consolidated, rounded up to the nearest one-eighth of a percent. This means the rate you'll pay won’t be more than one-eighth of a percent more than the effective rate on your individual loans. The rate is fixed for the life of the government student loan consolidation.
We’ve looked at the pros now lets look at the cons. Although consolidation can simplify loan repayment and might lower your monthly payment, you should carefully consider whether you want to consolidate all your loans. For example, you might lose some discharge (cancellation) benefits if you include a Federal Perkins Loan in a FFEL Consolidation Loan or Direct Consolidation Loan. If that’s the case, you might want to consolidate only your FFELs or only your Direct Loans and not your Federal Perkins Loan(s).
You also wouldn’t want to lose any borrower benefits offered under your existing non-consolidated loans, such as interest rate discounts or principal rebates, which can significantly reduce the cost of repaying your loans.Further, you can have a longer period of time to repay your government student loan consolidation than you do for the individual student loans you’re repaying, but this also means you’ll pay more interest over time.
In some cases, consolidation can double total interest expense. If monthly payment relief isn’t a top priority, you should compare the cost of repaying yur unconsolidated loans against the cost of repaying a government student loan consolidation.Once finalized, government student loan consolidation can’t be undone. Bear in mind the loans that were consolidated have been paid off and no longer exist.
The bottom line is that it’s best to take the time to study your government student loan consolidation options before you apply.
For more details on government student loan consolidation, contact your loan holder(s).

Students across the country are jumping on the government student loan consolidation bandwagon. And for good reason!
Whether you are still in school, a graduate, unemployed or comfortably employed you can save thousands through a government student loan consolidation by locking in record low interest rates before they go up.

If you need to reduce your monthly student loan payments by extending the amount of time you have to pay your debt, a government student loan consolidation may be the solution for you.
If your loans are in default you may still reap the benefits of a government student loan consolidation. Benefits include protecting your credit rating, saving money by locking in lower interest rates or lower monthly payments.
On the other hand, a government student loan consolidation may not be the answer for you if you’re nearing the end of your repayment term. There’s not a lot of ‘cents’ in spending your valuable time rearranging your loan portfolio, especially if it means extending the amount of time you have to pay off your debt. If you can manage your existing monthly payments stick with it because you will save money over the long term.
If you have more than one student loan, a government student loan consolidation will allow you to combine all of them into one monthly payment while locking in a low interest rate. Ultimately, your debts will be easier to manage.
To help make the repayment process easier and more attractive, there are four government student loan consolidation plans for you to choose from.
Standard Plan: The standard repayment plan offers a fixed-rate plan with monthly payments of at least $50 for up to ten years. Borrowers pay less interest under this plan because the repayment period is shorter.
Extended Payment Plan: The difference between this plan and a standard plan is monthly payments are extended over a period of 12-30 years. If you have a high debt load this may help you reduce your monthly payments but the longer you take to clear the loan, the more interests you will pay.
Graduated Payment Plan: Under this plan monthly payments start out low and increase approximately every two years. The repayment period can be from 12-30 years depending on your debt load.
Income Contingent Repayment (ICR) Plan: Your monthly payments via this plan are based on your income, family size and loan amount.
Take the time to compare the cost of repaying your unconsolidated student loans against the cost of paying a government student loan consolidation.
It’s in your best interest to explore your government student loan consolidation options. Consult https://loanconsolidation.ed.gov and participating lenders to discover if government student loan consolidation is the right choice for you. If you decide consolidating your student loans is in your best interest, taking the time to compare what participating lenders offer could save you lots of money.

Should I consolidate my college loans or not?
1. Still in school, yes! Rates are low, but they're scheduled to go up. Your college loan payments will then remain as manageable as possible when you leave school. If you have graduated, or will be graduating this May or June, yes! Graduates can lock in historical low rates, and reduce their monthly payments more than half. You can lock in a rate even while still in school, and even if you have been out of school for a couple of years can get a good deal, too.

2. The newest twist in the consolidation puzzle is the "in school consolidation", affecting students who are currently enrolled and will be enrolled past the July 1 consolidation. You can consolidate your existing college loans now to secure the low rates for at least part of their student loan portfolio.
3. Consolidating could save thousands of dollars in interest payments on college loans. There are impending student loan rate changes and new interpretation of regulations by the Department of Education, also, Congress is considering ending the fixed-rate program. Experts are urging students to consolidate to relieve themselves of a higher debt load.
4. Many students and families are looking for a simple, clear answer about whether to consolidate college loans or not. The simple answer is to take some of the bite out of the debt by loan consolidation. You could live like a miser and save as much money as possible or consolidate your federal student loans now.
5. For students still in school, you have an opportunity to choose consolidation. Consolidating would put a college loan borrower into repayment status, but the student can defer payments until after graduation by making a deferment request. Consolidating today can have payments put off until graduation.
6. The federal loan program allows consolidation, which is when a borrower pools his student debts together so that only one monthly payment is necessary, rather than several. It's not just the convenience of one payment that is making consolidation so compelling. The most significant aspect of the program is that it allows a person to permanently lock in a lower interest rate on loans. These loans are backed by, or granted directly by, the federal government.
7. Rates for federal Stafford loans, the most prevalent type of student loan, as well as some other types of federal student loans are set annually based on the rate of 91-day U.S. Treasury bills at the end of May. The exact rate won't be known until the end of the month, but experts say it will be about 2 percentage points higher. (Private loans and federal loans cannot be consolidated together.)
8. For the first time, the U.S. Department of Education will allow students still in school to consolidate federally backed loans. Federal PLUS loans can also be consolidated. PLUS loans are used to help pay the cost higher education.
9. Students, regardless of enrollment, should absolutely consolidate their college loans, arranged through the student's lender. There are no fees, no credit checks, and interest rates are expected to move higher. Those are good reasons to consolidate.
10. Act quickly to put lock on current federal-aid interest rates. Graduates should act now to insulate themselves from a drastic rate change. Apply early. Do not wait until the last minute to file paperwork. Those who have already graduated or left school should not wait to investigate consolidation. In the first six months after graduation, you are in a grace period. Within that six-month window, you can lock in a low rate on Stafford loans and spread the repayment over as long as 30 years.
If you're going to consolidate, now is the best time to do it.

The Federal student loan program has benefited thousands of college students in the forty years since it was introduced. Interest rates for the program have historically been quite competitive, and the program has allowed many people to acquire a college education who otherwise might not have been able to afford one.

At the moment, interest rates on Federal student loans are the lowest in history, but that is about to change. On July 1, 2005, the interest rates on Federal student loans will rise, due to an increase in the price of Treasury, bills, to which the interest rates on student loans are tied.While an increase in interest rates is seldom viewed as a good thing, knowing about it ahead of can be helpful. Between now and June 30, new graduates or those who have been repaying existing loans can consolidate their student loans at current rates. The rates currently vary, with fixed rates being slightly higher than adjustable rates. Those considering consolidation might wish to convert their loan to a fixed rate. Depending on the amount of the loan, borrowers may extend their loan terms to as long as 30 years.There is also legislation pending in Congress that would change the Federal loan system so that all future loans are adjustable rate, with no fixed rate option. This will save the government money by not allowing students to lock in long-term loans at low rates during times of increasing interest rates. Students who wish to obtain a fixed rate loan may not have much longer to do so.Rates will vary slightly from lender to lender, and the market for loan consolidation is quite competitive. Those wishing to consolidate their loans should consider shopping around for the best deal while time permits.