What if all that student loans were private meeting in a single bundle? Then there is only one single monthly payment that a lender, one day at a fixed interest rate, and a single date, or pay-off date. Cool? Yes? Yes
Reduction in payments
If you're smart when you approach a lender to consolidate your loans, you Finagle a good low interest fixed rate. And the payment to a lender that will be significantly lower than that of two or more payments faced before, especially if it extends the expiration date.
Often, when student loans were first made in interest rates that fluctuate with the opportunism of the credit markets and considerations. With a fixed interest rate, you do not have to worry about the markets. Once you have a fixed interest rate, the loan is that interest rates over the life of the loan. This means no nasty surprises in your monthly budget.
Here is another factor supporting the private student loan consolidation - that can improve your credit score. Having a lot of outstanding debts on your credit report does not look too bright red for potential lenders. It looks really good is a series of debts responsibly for retirement. With a private student loan consolidation, a better result can be yours.
Federal student loans
A disadvantage is that you probably do not want to pull your federal student loans in the same folder consolidation because the federal loans generally have a huge interest that may be difficult to replicate in the private sector lender . If you have one or more federal student loans, you may want to consolidate first. A private lender sees that you manage your finances and thus are likely to be more willing to lend you money to cover your private loans.
If you're like most students, the school may have led you to engage balances rather heavily on one or more credit cards. If you can prove that this debt was related to school, you can probably have them included in your plan student loan consolidation and private. Your lender should be willing to work with you on that. It would be very useful, because credit cards carry rates of interest very high. Again, these get your credit file with a name paid in full will only help your credit.
Negotiating for your interest
If you are very clever, you go online and download a risk-free interest calculator weighted. Take it and enter the interest and other information on all of the outstanding private student loans you. This will give you an average of what you pay interest. This gives you a negotiating point. You want at least the interest calculator accurate, but talk your way into a lower, if you can.
Consolidate your student loans may seem almost an argument. Worth only in terms of peace of mind and bring some order in your financial life. Of course, what's wrong with cash flow that has a little better in a given month? That alone is reason enough to opt for consolidation.