Why Consolidate your Federal Student Loans?

Upon graduating from university, you begin your truly independent, adult life. Once the goal of getting your degree is checked off the list, new goals immediately pop up. A new car, a stable job, your own home. All the things that make you feel as though you are truly accomplishing things in life.

The flip side to all of this adult independence is the bills that come with it. Each month they roll in: credit card bills, house payment, car payment, insurance, and more. As they roll in, the money rolls out. That alone is stressful.

Add to that keeping all of these bills straight. Most of us can remember that one day each month that mom and dad spent at the dining room table reading over bills, making charts, and cutting checks. It seemed boring then and it still is now. But it is your turn.

Out of all the bills to keep straight, your student loan repayments might be the most difficult. The majority of students will have at least four loans in their name–one for each year of their schooling. However, many of us have more than that. Each loan has its own terms, its own monthly payment, and its own interest rate. All those numbers can get confusing.

Federal student loan consolidation allows you to simplify this process. If you have multiple federal loans, you can combine them into a single, monthly payment with one interest rate. There are two ways that you can accomplish this.

Through federal programs, you can opt for federal student loan consolidation. With these programs, all the loans are combined and the interest is determined by averaging the current interest rates together. Out of the two options, this one is likely to cost you more in the end. However, if you currently benefit from other federal programs, such as their loan forgiveness programs, you can lose your enrollment when consolidating. It is important to weigh the costs and benefits.

If you are not part of any federal student loan forgiveness programs, you might want to consider consolidating your loans with a private lender. These lenders will refinance your loans, combining them into a single monthly payment while also offering desirable interest rates. In this manner, they make things less complicated for you each month and save you money in the long run.

If you are interested in consolidating your student loans, take some time to stop by Credible.com. After answering a few, simple questions, they will contact various lending companies to get you competitive offers. Then you can weigh your options and choose the one that best works for you.