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Should I consolidate my student loans? |
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Student loan consolidation can dramatically cut your monthly payments by extending the term of the loan and often by reducing the interest rates. It is quite common for someone with $50,000 in student loan debt to be paying monthly payments of $700 per month prior to consolidation and reduce those payments to $300 after consolidation by stretching out the debt from 10 to 30 years. And because you are agreeing to a longer-term note, you can generally obtain a lower interest rate. Consolidation also provides the opportunity to lock in a fixed interest rate rather than a variable rate, which can be a substantial benefit during times of lower interest rates, or if you foresee excess inflation in the future.
Many student loan consolidators offer additional perks as well such as a quarter-point reduction for allowing them to automatically deduct payments from your bank account and an even greater reduction if you make on-time payments each month for the first 24-48 months. Be sure you have the best deal and the best rate you're likely to get before you consolidate however because under current US laws you can generally only consolidate once.
 Student Loan Consolidation Offers
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