Advantages There are however, many benefits to consolidating your federal student loans.

You will only be making one monthly payment to one financial institution.

There are really only about four lenders left who are actively participating in private student loans.

rules for consolidating student loand-21

And you should be able to decrease your monthly payment.

With federal student loan consolidation, your interest rate will never be higher than 8.25%. You may also be able to extend your repayment period if you so desire.

Second, one of the most important advantages I found with consolidating is the ability to convert to a fixed-rate loan.

If your loans currently have variable interest rates, I’d definitely look into consolidating them.

I hope you found this helpful and informative, and I wish you luck in your decision.

A student loan, may it be a private or government student loan, is one helpful way of funding your college education.

The repayment period of most student loans is long enough; I’d be careful before extending it any longer.

If you’ve graduated in the last six months, then consolidation may be perfect for you.

Once you’ve done your homework and made your decision, simply go to Fin Aid to begin the process.