Student Loan Debt Consolidation – How to Know If You Are Eligible

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Student loan debt consolidation is a exactly what it sounds like it is, a process where someone that has a substantial balance on several different students can consolidate all of those loans into one single manageable balance. This would also turn what may be several different loan payments into one single monthly payment that is much more affordable. Consolidation may also substantially reduce the amount of interest the individual may be paying as well, depending on the financial institution that you use.The cost of getting a college education has greatly increased in the United States in recent years. As the job market has become more and more difficult to penetrate in some markets, many people have opted to go back to school in order to further their education. However, education is a huge expense and once the schooling has ended, you’ll soon be receiving payment notices in the mail.Student loans by design are already low interest loans. They also have very flexible payment terms. However, many students have difficulty trying to make or keep up with the payments. Much of this may depend upon the current job market, the type of degree earned or other issues.Consolidation loans are designed to create a manageable situation where an individual may either reduce or even potentially eliminate part of the principle balance of the loan. The ability to reduce or eliminate the principle balance of the loan will depend upon the type of loan it is, the situation, etc.If for some reason you are not able to reduce or eliminate the balance of your loan, then a student loan debt consolidation loan may be your best option. There are 2 types of student loans that you can choose from – Private and Federal.