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Benefits of Student Loan Consolidation?

Simplify the repayment process

Consolidating your student loans comes with many benefits and you should not consolidate unless you owe more then $7,500. You can simplify the repayment process by paying off your student loans with one single payment a month. In other words, any federal student loans you have can be combined into one loan. So instead of you have to write 3 or 4 checks, or do 3 or 4 bill pays, you only have to do one for any federal loans you have. Consolidating private loans is much more difficult but in some cases you are able to consolidate those as well. However, never, never, never consolidate your private and federal loans together (consolidate them separately) because federal loans are federally subsidized and offer lower interest rates.

Lower your monthly student loan payment and interest rate

You can reduce your monthly student loan payment up to 53% with some lending partners, putting less strain on your monthly budget. Although the repayment term is longer (usually you can select a term from 10-30 years), your interest rate is reduced to a fixed rate. With a lower interest rate, you should pay off more then the monthly requirement if possible.  As a result, you end up paying less interest, as there are usually no prepayment penalties.

Improve your credit score and prevent it from being lowered

Student loan consolidation can improve your credit score. If you cannot pay your current monthly requirements, consolidating will help, and therefore prevent the degradation of your credit score because when you don't fall behind or miss payments so your credit cannot be destroyed.

Make Sure You Have Companies Compete For Your Business

Finding the lowest rates is a lot easier today with the Internet. For example,'s student loan consolidation section is one example of how you can fill out one form for free and have your information sent to up to 3 student loan consolidation companies instantaneously who will then compete for you business. These companies know they are competing for your business with other student loan consolidation companies so they are more likely to give you good deals right away. There is no cost or fees to consolidate your loans. Lastly, do research, talk to the companies that are knowledgeable and have 1 on 1 customer service. They should be willing to discuss both the benefits and disadvantages of student loan consolidation.