Government Student Loans Consolidation - Cash Saving Secrets Revealed

If you're one of the many folks out there that has a lot of student loans, you should consider government student loans consolidation. The importance of a good education continues to rise in tandem with the cost of education.

These days it is virtually impossible to get a good job without a college education. For a lot of folks, especially those with multiple degrees, this means that by the time they're done with college they are burdened with many different loans, government-funded or not.

Although loans are a necessary evil, they can often get out of control. There is something you can do about it however.

What does consolidation mean?

A government-funded student loan can be consolidated just like any other loan. Consolidation means that all of your loans are "bought out" by a lender (maybe even the lender that holds your current loans) and lumped together into one big loan.

This allows you to pay them all off in one monthly payment, rather than a bunch of smaller payments. This saves you money in the short term because you will be making lower monthly payments over a longer period of time.

How To Qualify

Before you leap into consolidation there are a few things you have to understand. First, you have to qualify for consolidation, which means that you need to be in good standing on your student loans.

To be in good standing you must still be within your six-month grace period after graduation or have made three full monthly payments on time on each of the loans that you want to consolidate. This demonstrates that you have some responsibility and increases your chances of getting your loans consolidated.

Keep in mind that you are pretty much applying for an entirely new loan and that your lender will treat it that way; considering your responsibility, reliability and other risk factors.

Why Consolidation?

Another thing to think about is the fact that you will be paying more money on the back end of your loan. Sure, you definitely save money upfront without consolidation, but the accumulated interest will end up costing you more money over the life of the loan.

What it pretty much boils down to is that you are making smaller payments to help you deal with things immediately but small amounts of money are being added to your loan in the form of interest.

This means that you are in effect spinning your tires because you are only paying on the principal a little bit at a time. Most of your monthly payment goes towards the interest, which is pure profit for the lender. This is why consolidation is a great idea.

Conclusion

There's no reason to continue struggling under several government-funded student loans. Consolidation programs help students such as you better manage your student loans by allowing you to make one large monthly payment rather than numerous small payments and the consolidated payment will usually be for a smaller amount than what you would be paying had you not consolidated.

Government student loans consolidation is a must for college graduates saddled with multiple government student loans.

Why You Should Consolidate Your College Loans While In School

Before I tell you the four most important aspects of College Loan Consolidation you must know, understand that the well-known type of college loan repayment option is the loan consolidation. Loan consolidation is favorable to college loan debtors because they offer them good benefits in both short and long term by enabling the lumping of one’s college loans into one account and one repayment plan.

Should you consolidate your college loans or not, yes you should now and take advantage as follows:

1. Loan consolidation makes your college loan payments manageable when you leave school. The rates are very low and repayment period is extend to give you a breathing space, and monthly payments can go down to more than half.

2. The latest in college loan consolidation plan is "in school consolidation.” You can consolidate your existing college loans while in school to secure low rates for at least part of your student loan portfolio.

3. College loan Consolidation saves thousands of dollars in interest payments on college loans. You will be better off to consolidate now so as to forestall a higher debt load. In order to successfully apply for college loan consolidation you must put pencil on paper and work out your income and expenses in relation to the amount you intend to borrow.

4. Do not think about whether to consolidate your college loans or not, just do it. A little sacrifice will not kill you, the earlier you consolidate your college loans the better.

Most students do not favor consolidating their college loans whilst still in school, because it will lower their living standard. However, to consolidate a college loan while in school does not mean that you must begin repayment immediately. There is a deferment clause you can bring into play and thus start your repayment after you graduate.