Consolidate College Loan
Select up to 5 types of loan and click the button
Do you need to apply for a student loan to pursue your college degree?
Students facing high monthly payments for student loans from multiple lenders may wish to consolidate college loan debt. Many borrowers choose to take advantage of the option to consolidate college loan debt because the process of consolidation functions as one way to lengthen the life of the loan and reduce monthly payments by up to 50%. Moreover, with 65% of students leaving college with both private and federal debt, students often face multiple payments to different lenders. Compounding this, the average student leaves college with $2,146 of credit card debt. Though each separate payment may seem manageable, taken together, these payments severely hinder the financial viability of student borrowers. By consolidating this debt, graduates can take a step toward combining these payments and managing their loans more responsibly through savvy fiscal planning.
Need to consolidate college loan payments?
Learn how to consolidate college loan debt today.
Many borrowers choose to consolidate because they can reduce student loan payments by up to 50%. This is particularly useful for those facing crippling student loan payments each month. Lower payments make up only one reason for borrowers to choose this option, however.
Reasons to consolidate college loan debt:
• Lower monthly payments up to 50%
• Reduce interest rates
• Secure a fixed interest rate
• Combine multiple loans
• Lengthen the life of the loan
• Find a better deal on college loans
Consolidation simply means that a student finds a lender who can take charge of each of the student’s multiple loans, combing them into one larger loan. Often times, the lender will lengthen the life of the loan during the process of consolidation, lowering monthly payments. Lenders may also offer the borrower a 0.25% reduction of the loan’s original interest rate, or a new, more competitive interest rate, in the process of consolidation. As a result, choosing to consolidate college loan debt can serve the borrower by allowing him or her to find competitive deals to manage debt that sometimes aid the graduate in the long run. Consolidation can function as an important debt management tool for new college graduates who are struggling with student loan repayments.
In addition to lowering monthly payments up to 50%, students choose to consolidate college loan debt because they can secure lower interest rates by taking a bank’s competitive consolidation offer. They may also choose to consolidate student loan debt in order to secure a fixed interest rate on a loan that previously had a variable one. While variable interest rates change over time, low, fixed interest rates are guaranteed to stay the same over the life of the loan and may prove a better choice for some borrowers. Students who have multiple loan payments each month may choose to consolidate so that they have one easy payment, verses five or six payments they may forget about or misplace. By lengthening the life of the loan through choosing to consolidate college loan debt, students lower monthly payments in anticipation of future job success.
Most important, some students consolidate college loan debt because banks offer them better, competitive rates and conditions for their loans. This last reason allows students to find better deals on college loans after their credit has been established and they are more financially savvy. Ultimately, many students choose to consolidate college loans for a plethora of good reasons. Students who fear bankruptcy or loan payments that exceed their financial capabilities should consider consolidation as soon as possible in order to find a responsible means of managing debt without declaring bankruptcy. Major student loan corporations like Sallie Mae, Wells Fargo, Key Bank, Educated Borrower and Student Loan Xpress have consolidation packages for student borrowers. Many of these packages feature rates and terms that remain comparable to federal loans. This is important for students who want to get the best deal when they consolidate college loan debt.
Need to consolidate college loan payments?
Learn how to consolidate college loan debt today.