An Introduction to Student Loan Consolidation
As you graduate and start to think about paying off your student loans, you first need to realize that you have options. One of them is referred to as loan consolidation, which, you may discover makes perfect sense for your financial situation. Or, after checking out the pros and cons, and examining your future career and life plans, loan consolidation may not be right for you at this point. The important thing, however, is that you are thinking about your future, comparing the different types of consolidation options available, and determining what makes sense for you. Given the time, work and money you've put into your education, this is a smart move.
What is Consolidation?
Though the loan consolidation process and its terminology can be complex and confusing, the basic concept is easy to understand: You take all of your outstanding federal student loans (even if it's just one loan) and bundle them into one new student loan with one monthly payment. The new rate is fixed-meaning it won't change-and the length of the loan can be extended all the way up to 30 years, which can lower the amount of your monthly payments. It's a kind of refinancing of your federal student loans.
SimpleTuition has many articles and resources on this site about consolidation. It's a complex topic, but a decision that could save you time and money.
