Student Loan Consolidation

Every high school student thinks of college at one point in their academic life. They very seldom think of how they are going to pay for the cost of higher education. When they do, they just figure that they can apply for student loans, grants and scholarships.

Every year, billions of dollars in student loans are granted. What the student fails to consider is that how fast the years go by and it is then time to repay the loans. Often a student has more than one loan and the repayments can be more than what the student can handle. It often becomes overwhelming and the student cannot make the payments.

Student loan consolidation was designed to assist each student with the repayment of their loans while being able to pay their monthly bills also.

There are several different types of student loan consolidations. Each one was developed to assist a certain type of student loan. It is crucial that you choose the student consolidation loan that meets your needs.

The most popular type of student consolidation loan is a standard loan consolidation. This type of loan has a fixed interest rate, which makes your payments more consistent. The repayment time for a standard loan consolidation is ten years. It is possible to repay this type of loan early, however you may incur early repayment fees.

Another type of student consolidation loan is called an extended payment plan. This type of consolidation loan is the same as a standard loan however the repayment time is extended up to thirty years. It is important to note that with an extended repayment plan, the interest rate that is paid over the thirty years can be far more than the initial loan or loans.

A graduated repayment plan was developed for students who are already working in their chosen field and can begin the repayment process upon graduation from college. With this type of loan, the repayment amount begins very small and gradually increases throughout the years. The increase occurs every two years. The loan repayment time can be up to thirty years. Again, the interest rate on this type of loan can be very high and you could end up paying a lot more then you borrowed.

In the end, only you can decide if student loan consolidation is right for you. If you have a lot school debt, it may be in your best interest to investigate what your options are.


By Alan King


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