Understanding Student Loan Debt Consolidation

When student needs financial assistance to get through college, student loans can be beneficial. The problem comes later, when the student has graduated and accumulated a great deal of debt. They often have multiple loans with more than one lender, which can make repayment even scarier. So, how can someone in this predicament breathe a little easier? By getting a student loan consolidation!
Loan consolidation is beneficial in that it compiles debt into one loan with one lender. Once the consolidation has taken place, the student only has one payment to worry about, which can make things a lot easier where repayment is concerned. It can be very stressful to have 2 or more bills being due monthly, especially when the individual loans add up to a large debt.
What's even better is your student loan consolidation will typically have better repayment options. Credit checks are not need with most consolidation companies, and you don't need a cosigner to take advantage of this service.
It is important to note that a consolidation should only be done when it will help lower the interest rate of your loans. This will assist in you paying a smaller bill each month, making the debt more manageable. If you have almost completed the repayment, however, consolidation would probably not be a wise decision for you.
In order for you to be eligible to consolidate the student loans you currently have, there are a few factors to consider. You can receive a consolidation if:

• You have loans totaling $7500 or more
• You have not gotten a loan consolidation in the past
• You haven't received any new loans
• You have loans with more than 1 lender
• You are in or beyond your 6 month grace period given after graduation

If you choose to do a student loan consolidation, it is important to remember you can only do it once. The exception is if you return to college and accept new loans.

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