Almost every student who graduates from college is burdened with the debt of student loans – often for years or decades to come. Some students had borrowed modest sums while in school, benefiting from a parent’s college savings fund or a scholarship. However, most college graduates with student loan debt shoulder tens of thousands of dollars in debt.The challenge that many of these graduates face is compounded by the fact that they actually carry multiple loans from different lenders. These loans are often in effect at different interest rates, with some being variable and some fixed – and many set at different repayment terms.One possible solution to simplify life for these graduates holding multiple student loans is to consolidate their student loan debt.Why Consolidate?Consolidation is simply the act of rolling all of these loans up into a single loan. The new loan is offered at a single (almost always fixed) rate and often with more agreeable repayment terms.There are many benefits of consolidating your loans, including the possibility of making much lower monthly payments (because you can extend your loan’s repayment period over more time), a simplified repayment schedule (it is easier to make payments to just one lender), and the advantages of having a fixed interest rate.Student Loan Consolidation Comparison: 3 TipsIf you are considering consolidating your loan, it is very wise to get quotes from multiple lenders and compare their rates. But, what is the best way to go about comparing lenders? Here are 3 tips that can help:1. Find out how long each lender has been in business: Start by making a list of at least 3-5 lenders. Then, start your research!The first thing to find out is whether each one is actually an established lender or not. Check with online student loan consolidation lender review sites and with the Better Business Bureau about each one. Be sure to take careful notes about your findings.2. Research their “street cred” by searching blogs and discussion groups: Next, what better resource than your fellow college graduates to give you feedback on the best and worst lenders? Do a search on a major search engine for discussion groups related to consolidation loans and see what you come up with. Look for both positive and negative types of comments on these lenders.3. Apply to the top 3 lenders you researched find and compare rates: Now, narrow your list down to 3 lenders and apply! It is important to press each lender to make sure they are offering you their best rates. Read all terms and conditions before signing any consolidation contract.Follow these 3 tips for conduct an effective student loan consolidation lender comparison.
