College graduates everywhere are fortunate people: they have had the opportunity to devote 4 or 5 years of their lives to higher education and all that it entails. Well-educated people tend to make more money throughout their lives. They are more well-rounded in terms of their general knowledge base than their less-educated peers. And, they have an added sense of self-confidence that shows in the way they carry themselves.With all of that good fortune comes the responsibility to pay for that education.Barring those lucky few graduates whose parents had paid for their education or who won full college scholarships, the need to pay for one’s college education lasts until long after graduation. The reason: student loan debt.Most college graduates rack up one or more student loans over the course of their college career. These loans can easily run up to $100,000 or more in total debt. Meanwhile, given short repayment terms of 10 years or less, this means that monthly loan payments can be so high that the graduates cannot afford to pay them each month.Loan Consolidation Helps Graduates Who Have Multiple LoansWhat’s more, there are many college graduates who have taken out multiple student loans. This compounds the problem of having to make monthly payments, since having multiple loans means making multiple separate payments at different payment amounts – and each with a different due date. What a mess!One solution for these graduates? Student loan consolidation. By consolidating, these students get to make just one payment each month, rather than making many payments. And, they can lower their payments overall.Federal Or A Private Consolidation Loan?Before pursuing a consolidated loan, it is important to determine whether you should take out a federal or a private consolidation loan. Put simply: if your existing student loans are federal loans, you should seek federal consolidation. Otherwise, private consolidation will do.Choosing The Best Student Loan Consolidation ServiceTo choose a loan consolidation service, check these 4 facts about each one you consider:1. Are they reputable? Find out how long they have been in operation. Also, find online blogs and other social media sources that contain people’s comments about the company, whether favorable or unfavorable.2. How are their rates? Check the company’s stated student loan consolidation interest rates on their website. (Understand that, for private loans, the rate you actually pay will vary based in part upon your credit score).3. Any specials? Look for any specials the company may be offering.4. Do you qualify? Of course, you will want to apply for a loan to see if you qualify. Be sure to apply with multiple vendors to get the best offer.After comparing the loan terms of 3-5 loan consolidation service lenders, choose the one that gives you the best offer. Doing this extra bit of work could save you tens of thousands in interest over the life of the loan.
