Understanding and discovering if school consolidation loan is good for your student debts is one of those most sought after idea if you are better off or not with it. When student debts are becoming insurmountable and getting to be a burden on managing them you need to do something. And one thing that you can do is to see if school consolidation loan is a good option. There are really two types of student loans, federal and private.This should be easier for you to manage, as well as giving you time to prepare for payments due to the fact that there will be a break before you start paying off the loan. It’s important to note that school consolidation loan, technically speaking, does not reduce your debt in and of itself. All you need is a new loan where you can put all your debts into one single monthly payment.By consolidating your student debts, you will improve your credit rating and thus give more flexibility when the time arises to buy bigger items. Over time, your improved score will give you access to a number of more favorable loan options. The interest rate you will get on these loans is higher than home equity loans but a lot better than credit card APRs (Annual Percentage Rates). It is important to shop around for your loan.Calculate the monthly payments, interest and charges on your existing debt accounts. There are a lot of sites for a home or an automobile or even life insurance might be denied to an individual who shows a bankruptcy filing on their personal credit report. The bottom line what about having a stinky credit score and it not mattering? Well you better believe when they say you are in some sort of trouble if you have a bad credit report. So it is something that you need to improve on. You may also need it when applying for school consolidation loan.Additionally and here is the big one, an applicant must provide monthly income and expense figures. You may want to have an attorney or a financial advisor review your documents to ensure that everything is in order.Some lenders set a limit of not more than two hundred and fifty thousand dollars of total accumulated debt. The only exception to this would be if all of the debt that is involved in the consolidation happens to have the same interest rate. It depends upon the financial institution that offers the loan.Getting school consolidation loan for all your student debts may be a good option especially if you are really in bad shape financially. Most of these federal and private educational loans can be consolidated into one single new borrowing to get a better handle on your indebtedness. And thus, reduce the stress and burden of managing too many monthly bill payments.