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Have you just graduated from college and are worrying about paying back your student loans? Typically, college grads have over $25,000 in debt. If you have multiple loans with different lenders, consolidating can be helpful. Detailed below are the pros and cons of student loan consolidation.

When you consolidate, you lock in lower interest rates. Being that student loan rates are at an all time low, now is the perfect time to consolidate. When you consolidate, the interest rate your receive will be an average of all the rates from your current loans. If you don't consolidate, it is likely that your rates will increase over time.

It is possible that when you consolidate the overall cost of your loan will increase. When you consolidate, your debts are unified into a new loan with a longer term. Typical student loan consolidation terms are between 10-30 years. As a result, you will benefits by decreasing the amount you owe on a month-to-month basis, but you will pay more interest over life of the loan consolidation term. Therefore, if you can afford your current payments for your loans, then make the payments and do not consolidate.

Managing debt becomes much easier when you consolidate. Instead of having to worry about multiple loans to pay, and when you have to pay them. When you consolidate, you'll have only one payment to make each month, to one lender.

The requirements for consolidating can be difficult for potential borrowers. Your loans must be from specific lenders, the total owed amount must be greater than $10,000 and you must have graduated or not be currently enrolled in school. You also can not be in default on any of your loans.

When you consolidate your student loans, you'll be increasing your credit score. How? Because your are eliminating the total number of open accounts that you have on your credit report.

A student loan consolidation program may not be your best solution. There are programs offered by the Government that allow students looking to pay-off their loans to do community service and/or teach in certain areas in exchange for eliminating their debt. Also, if you have a Perkins loan, there are occasions where your debt can be forgiven. In addition, if you have other types of unsecured debt, you should consider enrolling in a regular debt consolidation program. We also offer unsecured loans for consolidating debt. It is always wise to research all of your choices before you choose to consolidate. It is a good idea to research all your options before you consolidate.

In conclusion....
Life beyond college is not easy. Having to worry about your debts does not help. Considering all of the pros and cons above will help your determine if a student loan consolidation program is the best option for your today. We invite you to apply for a free, no obligation student loan consolidation quote online today.


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