Wednesday, March 28, 2007

Student Loan Consolidation

There's three reasons why you might want to think about a student loan consolidation program.

Firstly though, you need to know that things can be different from state to state, so a Florida student loan consolidation program can be markedly different from a California student loan consolidation program.

That aside the three main reasons are:

1) It is possible that since you took out your original loans that interest rates have fallen. Thus you can refinance them at a lower rate, reducing your payments.

2) When you refinance you are able to extend the term of the loan. So at the cost of making payments for more months or years, you can reduce your current monthly payments.

3) You might have loans from a number of different sources. Student loan debt consolidation means that all of these different ones are bundled together into one. This means just one monthly payment, much easier to keep on top of, and it is also possible that 1) and 2) will also apply.

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