Student Loan Consolidation For Undergraduates

If you are currently an undergraduate, you might be thinking that you have lots of time left before you have to start worrying about how you are going to pay off all of the student loans you have taken out to pay for educational expenses. This simply is not true. Get a family member to look into student loan consolidation if you can’t because you can benefit quite a bit if you choose to start eliminating your debt before you ever graduate.Something to RememberIt is very important that you understand and remember that federal and private loans cannot be consolidated together. Since they are wholly different from one another they must be consolidated separately. If any loan consolidator you speak with claims that the two loan types can be consolidated, it would be best to speak to someone else who knows more about the consolidation process.Where to Find AssistanceFor individuals who have obtained all of their student loans from the same source, speaking to that source about consolidation options would be an intelligent first step in the consolidation process. Your creditor might have a consolidation program set up already. Even if they do not handle student loan consolidation themselves, they will no doubt be able to direct you to a different company that can help you.Federal student loans should be consolidated by contacting the state or federal program that the loans came from. The financial aid office at your school can help you get information on these loans. Remember that some federal student loans cannot be consolidated by undergraduates.Look OnlineThe number of financial institutions on the Internet that would love to help you consolidate your student loans is simply staggering. In order to sort through all such companies you will need to take your time and look for some specific details, such as:Will you have to pay in order to apply?
Can consolidations be deducted from my taxes?
Is the interest rate on the loan flexible or fixed?
Does the loan require a co-signer?Other Things to RememberNot all financial institutions have the same rules about how student loans are consolidated for undergraduates. That means that, in order to understand everything clearly, you should ask someone you trust to help you read the fine print on all applications. Filling out student loan consolidation applications will give you great real world experience.Some of the consolidation loans available can only be taken out by American citizens, while others require an employed parent to be a co-signer on the loan. Keep in mind that it is normal for these applications to ask you for private information.