Student Loan Consolidation – The Many Benefits You Can Gain

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Student loan consolidation is an important process to consider for many people. Most professionals these days went to college at one point, and most of those people now have student loans. As the years go by and as more and more people are going to college, an educational degree is going to become even more necessary, which means that even more people are going to have large debts to have to deal with. For most people in this situation, student loan consolidation offers a great solution – provided of course you want to pay less money overall on your loans and finish them off sooner.There are many, many benefits to student loan consolidation, making it a great option for pretty much everyone. For starters, you can’t underestimate how great it is to have all your loans taken care of with just one payment. Most people have to scrape and scrounge to get all of the money together to go to school and end up with a lot of different loans to have to organize and keep straight. It’s much less stressful to only have to look one place to take care of all of your loans, to only write one check every month, and to never have to worry that you’ve forgotten a payment or two. The more organized and simple your system, the less likely it is to fail.You also end up having more control over the repayment of your loans when they are consolidated. When you set up your student loan consolidation you are going to negotiate with your lender when it comes to your repayment schedule. You’ll be able to decide how much you can realistically pay every month towards your loan and how long you will take to pay it all off.It isn’t just your payment schedule that tends to get rearranged when you consolidate your loans – you also tend to get a single fixed interest rate. This is important because it tends to lead to paying anywhere between 10 and 60% less over the life of your loans. With traditional loans your interest rate will most like rise numerous times for the time you are paying it off, which leads to ultimately paying more money than if you continued to pay the interest rate you have now every year.Student loan consolidation also tends to be really good for your credit score. When you consolidate your loan you are effectively having your new lender pay off your previous lenders. On your credit score this makes it look like you have paid off significant loans before. In addition, you also will only have one line of credit on your statement as opposed to many – and you are often penalized for the number of credit lines that you have open.Overall, there is no reason that you shouldn’t pursue student loan consolidation. While it’s not a perfect system or a magic bullet, and while there are certain circumstances where it isn’t the best option, as a whole you probably aren’t going to do any damage by consolidating your loans – and chances are that you’ll do a lot of good for your future.