Sometimes people think that loan consolidation is too much of a hard work, so they leave all their loans as is and try to cope with all payments. In reality, consolidating your outstanding student loans is not at all hard.

1. 3 Benefits of Student Loan Consolidation
Get Money For School
Sometimes people think that loan consolidation is too much of a hard work, so they leave all their
loans as is and try to cope with all payments. In reality, consolidating your outstanding student loans is
not at all hard. All it takes is a bit of careful research, to find the lender that will help you save the
most. And the benefits of consolidating your college debt are significant. Consolidating can save you
several hundred dollars. Find out how to get the most benefits of your student loan consolidation.
Benefit 1: Less hassle
How many bills do you have to pay every month? How many of them are from different lenders for
your student loans? If you are like most people you probably hate keeping track of all bills and
payments that tend to arrive at a different time during the month.
Consolidation will solve this problem - you will have to make one payment every month, that's it. No
more forgotten student loan bills and trying to remember what you paid or haven't paid yet.
Benefit 2: You will pay less
Even though your consolidated rate is calculated as an average of your existing loan rates, the
resulting rate is usually slightly less. So your monthly payment will be lower.
Often students and young graduates try to compare several lenders in hope of finding the lowest
consolidation rate. There is no reason to do so. According to the law all lenders have to offer you the
same interest rate as Federal Family Education Loan Program. However, most lenders offer additional
benefits and that's where you savings will really come from.
Majority of lenders reward you with reduction of interest for setting a direct bank withdrawal. Paying
on time is also very important - usually you can get a reduction up to 1 percent on your interest rate
for paying before the due date for 24 or 36 month. So, for example, if your current average interest is
7.5 percent, after all discounts it will be 6.25 percent. Considering that you will repay your loan for
several years this will account to a substantial savings.
Benefit 3: Better credit history
When you pay several loans it is inevitable that from time to time you miss some of the payments.
This can lead to damaging your credit history. And as you know, if you have bad credit, it will be
difficult to get new credit cards and a mortgage when you decide to get your own home. On the other
hand, consolidating all your loans and paying one bill on time every month will help you built a strong
credit history.
So, there is really no reason not to consolidate. The only thing you will have to keep in mind is that you
will have to choose the lender for your consolidated loan very carefully. As a general rule consolidating
college loans is only allowed once. There are only two exceptions - if you decide to continue your

2. study and take another loan and if not all your student debt was included in the first consolidation.
So usually you can't "reconsolidate" if you see a better offer later. For this reason you will have to look
at the fine print so there are no surprises later. For example some lenders offer attractive benefits, but
they have additional fees or their fees for late payment are enormous. You will have to find all this out
before you commit to a particular lender.
Read more:http://www.getmoneyforschool.com