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About one in every three students who have taken up student loans end in debt after graduation. This is one reason why student loan consolidation exists.

First and foremost, loan consolidation isn't necessarily for everyone, so see whether you'll truly benefit from consolidating your loans or not. Do you feel you simply cannot afford your monthly loan payments anymore? Is there no other way to make your monthlies more affordable? These questions may help you decide. Now let's take a look at the good reasons why now might be a good time to consolidate.

Delayed Payments

You have other bills to pay for, and the way the economy is, it seems impossible to repay your loans. Consolidating enables you to delay your payments by a period of deferment. The repayment period can be lengthened from the usual 10 years to up to 30 years - you'll have more time to pay.

Multiple Due Dates Are Overwhelming

Through consolidation, you'll be able to gather all your loans into a single loan so that you pay on a single due date every month. The monthly payment is typically fixed for the whole term of the loan.

You Can Focus On Your Studies

Major banks can provide very lenient consolidation plans In fact some banks enable students to begin payment after graduation, so they can concentrate on their studies instead of worrying over loan payments.

You Can Take Advantage Of Government Perks

Since July 1, 2006, lenders are required to offer fixed, reduced rates with no credit checks to students who are in the grace period. Loans can be consolidated without having to spend on application fees and you have the option to pay earlier without prepayment penalties.

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A college or graduate school education is something that you can proudly carry with you for the rest of your life. Having graduated means you can be confident in the knowledge that you have a solid grounding in a depth of learning that can launch a career and inspire a thoughtful life.

For many graduates, along with the pride of accomplishment that accompanies college graduation comes the burden of student loan debt. It is not uncommon for grads to easily carry over one hundred thousand dollars of debt burden on their shoulders for years and years after graduation.

Depending upon how things go with their job search after graduation, college graduates may make enough money to make their monthly loan payments at first. However, as time passes and new demands like buying a house and raising a family start to get piled onto the graduate, managing student loan payments can become increasingly challenging.

The challenge of having to make monthly student loan payments can be particularly hard for those with multiple student loans. Having more than one student loan requires having to make different payments to different lenders, usually with payments due on different days of the month. This is inconvenient, to say the least.

Consolidate If You Can Get A Good Rate

An excellent solution for grads in this situation is to consolidate one's student loans. Through private loan consolidation, you will have just one loan - which means a single interest rate and single payment each month. It can also allow you to spread your payments out over up to 30 years, which could very well lower your monthly loan payments.

Of course, it is only a good idea to consolidate if you can get a better rate than that of the average rate of your current loans.

How Private Student Loan Consolidation Interest Rates Are Calculated

If you currently have private student loans, you are going to want to consolidate through a private consolidation lender. In this case, your new rate will be calculated based upon a combination of the current prime rate (or other standard rate index) and an additional margin determined by your credit (FICO) score.

5 Tips For Getting The Best Rate

If you choose to consolidate your loans, you are going to want to do everything you can to qualify for the best rate. Here are 5 tips for doing just that:

1. Run your credit report with all three Big Three credit bureaus: Since your new rate will be determined in part by your credit score, start the consolidation process by running your credit report with TransUnion, Experian, and Equifax.

2. Calculate your current weighted average interest rate: Calculate the weighted average of the interest rate of your existing loans. The result of your calculation represents the number you want to try to beat with your new interest rate.

3. Research loan consolidation lenders: Do some online research and create a list of at least 10 lenders that specialize in student loan consolidation. While you may be tempted to just find one or two, remember that your chances for getting the best-possible deal go up significantly if you are applying with multiple lenders.

4. Maintain a research log: As you compare lenders, be sure to keep meticulous notes in Excel or with pen & paper, including lender name, contact name, contact phone, published rates, and credibility of website.

5. Apply to at least 5 lenders: Now, you can start applying for a loan. Remember, apply to at least 5 of the best lenders you researched.

In the end, getting the right student loan consolidation interest rate is about knowing what rate you are trying to beat, how to do your research, and how to select the right offer. Doing so could lower your monthly payments by $100 or more.

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School loan consolidation, also known as student loan consolidation, is a way of unifying all your loans that you have incurred during the time that you are studying. These loans can be for your tuition fees, and you may have different lenders for each semester or term.

Receiving many student loan bills at a time can be very frustrating. Even a small payment amount can appear big to you because there are a lot of them, each with a different interest rate, due date and amount. It can be tough to keep track of these bills. Sometimes, you may even miss paying for one bill because when you have paid for the others, you thought you have paid for everything else. To relieve you of this problem, federal law would allow you to consolidate all your loans so that every month, you would only receive one bill with one due date. This is a lot more convenient than receiving a bunch of bills a month.

With school loan consolidation, you would have lower monthly payments compared to the sum of the individual loans per month. It would prevent you from getting a bad credit history because you now have the capability to make payments on time. Plus, you can expect no late fees if you pay on time, contrary to paying different due dates and missing one bills because of confusion.

Who are eligible for school loan consolidation? Anyone is eligible. However, for people with bad credit rating, they have lower chances of getting approved with a private lending company. Do not lose hope, though, for there are federal student loan programs for you.

If you have a credit rating of more than 660, you will automatically be eligible even for private lenders and chances are you would get the lowest individual rate possible. According to the Federal Family Education Loan Program of FFELP, every lender is required to have the same rate offering, although your individual rate is different from this. An individual rate is dependent on your credit rating and on the average rate of all your outstanding loan balances.

If you have decided to get school loan consolidation, you should look into various lender's offers first. Many lenders offer not only discounts but also some benefits. Some will give you lower interest rates if you have paid correctly in the past few months. Also check carefully not only the interest rate but also the payment schedule. How long are you going to pay for the consolidate loan? A low monthly payment but lasts for ten years is not very amiable.

Getting school loan consolidation is actually a smart move so that you would avoid missing any payments and you wouldn't mix up your payments. If you have not yet found a stable job after college, this can be very helpful for you. It can also increase your credit score. But then, as with every other loan, discipline must be enforced. School loan consolidation usually offer discounts and lower rates, but make sure you pay correctly and on time.

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Because the influence can be that big, it is crucial to learn more about the student loan consolidation rates and to think, what makes them to go up or down. Actually the student loan consolidation is a great time to try to get lower rates and ease the monthly payments.

1. The Federal Loan Consolidation.

How are the student loan consolidation rates calculated for the federal loans? The formula is very simple. The rate is the weighted average of the present loans. When you have this one, it is the time to compare that with the market prices and to think, whether you could save something in the monthly payments.

The Stafford loans interest rates use a fixed rate of 6.8 % through 2013. However, if the Stafford loan was disbursed before July 1 2006, it has a variable interest rate, but will get the fixed rate, if it will be consolidated. The present interest rates for the federal student loans are historically low. Stafford loan in school or grace period is 1.88 %, Stafford loan in repayment is 2.48 % and Federal Plus is 3.28 %.

2. Consolidate The Variable Federal Loan.

If you have a federal loan with the variable rate, now is the right time to get the new student loan consolidation rates. The reason is simple. Because the market rates are so low, you can get the low rate for the rest of the loan running time. This means rates for Stafford loan in school or grace period of 2.0 %, for Stafford loan in repayment 2.5 % and for Federal Plus 3.8 %. That can mean real savings for many years.

3. Why The Consolidation Brings Savings?

Usually a student has taken several loans to finance the studies, when his or her credit score has been the lowest possible. When he has graduated and maybe got the work, the credit score has improved and the interest rates may have decreased. By consolidating, which means one private and one federal loan, he will negotiate the loan with the new payment time and the new interest rate level. These are the two factors with which he can adjust the monthly payment.

4. The Meaning Of The Interest Rate.

The interest is the price of the debt, which a borrower will pay to the lender. The interest levels are set by the markets and the economy has a great influence on them. The lower is the rate, the better to the borrower, especially if the payment time is long.

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It is important to note, that the same student loan consolidation can be done only once to the same loans. But if a student will continue studying and takes a new loan, then he or she can do the student loan consolidation once again.

1. The Private Loan: Removal Of A Co-Signer.

The private student loan consolidation gives a possibility to free a relative or a parent from the position of the co-signer. This is possible after 24 to 48 months after making the regular payments.

2. Useful Questions To The Consolidator Of The Private Loan.

After a borrower has signed, the deal has been made. So it is useful to remember to ask questions during the agreement terms talks. Does the consolidator charge the origination fee, can a borrower pay more without penalties, what is the maximum interest rate and what is the running time of the consolidated loan?

3. The Private Loan: Do I Have To Pay During The Application?

When you have applied for the consolidation, it is wise to do the regular monthly payments to the lender. This gives a good picture about your financial position and assures, that you will pay, what is needed.

4. How Big The Loan Sum Should Be?

Most lenders see, that the total sum of the private loans must be at least $ 5.000 before you can consolidate them into one private loan. The consolidation process for the private loan takes usually about 45 days.

5. Do Not Consolidate, If It Is Not Needed.

The target of the consolidation is to decrease the monthly payments and to reveal money for the other purposes. However, the longer you will pay your student loan, the more you will pay, because the longer it takes, the more interests you have to pay.

On the other hand, if you will take the maximum length, and you have negotiated the terms, where you can pay earlier if you want, this gives you two options. You have more disposable money, but if you have some extra money, and if you want, you can pay more sooner, than what the terms require

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Student loan consolidation interest rates are subject to various changes. It is possible for a loan to incur two different interest rates in the loan term, in that one rate is calculated during the students time in school and the other kicks in once the student graduates.

Consolidation loans have longer terms than other loans.

Students can choose terms of 10-30 years. Even if the monthly payments are lower, the sum amount paid over the loan term is higher comp aired to other loans.

Fixed interest rate is calculated as the average of the interest of the loans being consolidated, assigning relative amounts borrowed, rounded up. Some loan policy features such as the grace period for re payment are lost and do not reflect on the consolidation loan.

These make them not suitable for all borrowers.Student loan consolidation interest rates is tied to one or more financial indexes.

For instance students with good credit scores or from families with good credit history get loans at cheaper interest rates and smaller origination fee.money paid out in terms of interest is now tax deductible.

This is a fact tat most lenders omit to tell potential clients so as to avoid comparison with other lenders in the market.

In some cases lenders give rates which are very low but fail to tell the borrowers that the rates only apply to those people with good credit scores thus they find themselves paying up to six percent more, than the advertised amount nine percent higher loan fees and two thirds lower loan limits.

Student loan consolidation interest rates also varies depending on the type of loan applied for.

They are two major types namely school channel loans and direct to consumer private loans. the school channel loans are certified by the school thus offer lower interest rates however they take a longer period to process and are directly disbursed to the school on the other hand direct to consumer private loans carry higher interest rates but are accessed very quickly.

The argument behind this is that the convenience is offset by the risk of student over borrowing or misuse of funds.

Student loan consolidation interest is also determined by the buying factors, such as the perceived risk of lending to the individual as well as the financial indexes they are attached to such as stocks

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Each State Has Different Options Regarding Student Loan Consolidation

A perusal through a comprehensive list of state-based student loan programs will reveal a wide variety of options available to students who need to borrow to finance their education, including both federal loans and private loans. What students may not know, however, is that many of these programs also offer special college consolidation loans. After graduation, many students are disillusioned to face the harsh reality of having to deal with college loan repayment. For most, college loan consolidation can prove a helpful way to manage one's finances in an easier and more responsible manner after college. Consolidating several different loans into one convenient loan will typically result in a lower interest rate, which will lower your monthly payment and give you some slack in repaying it. Sometimes, you may end up with a higher interest rate, which will raise your monthly payment, although it will also shorten the lifespan of the loan, allowing you to take the financial burden off your shoulders sooner than later.

Benefits of College Loan Consolidation