debtHave you heard of student loan consolidation and how it can help you save money? The truth is, there are several very big and very real benefits to consolidating your student loans. Even better, it’s not as difficult as you may think to get your loans consolidated. Here’s a breakdown of the benefits of loan consolidation and how you can do it quickly and easily.

The Benefits of Student Loan Consolidation

1.  A Better Credit Score–People who are recently out of college often have a lot of debt in the form of both student loans and credit cards (remember those student credit cards that were so easy to get?). This, compared with the relative lack of income that most college grads face in their first few years of independence, usually means a negative credit score. This lower score can, in turn, prevent you from getting new credit and good interest rates on loans, such as home and car loans. Consolidating your student loans lowers your monthly payments, freeing up more capital each month. That, combined with timely payments on your loan each month, can mean an improved credit score in time, which will be a great benefit to you when you go to get that first mortgage.

2.  Convenience–It’s a lot more convenient to pay one student loan bill each month than it is to pay several. It’s easier to remember, and it uses up less natural resources in the form of paper and fuel to deliver the bills to you. By consolidating, you’ll be able to pay your student loans in one monthly payment, which will make your life a lot easier. 

3.  Lower Monthly Payments–When you consolidate your student loans, your monthly payments will go down, as you’ll be saving money on interest by having one loan rather than many. This will give you more spending cash to work with each month, which can translate into a better standard of living.

It’s easy to get a student loan consolidation. All you have to do is contact your lender and request one. Your lender will guide you through the process, and all you usually have to do is sign a piece of paper aknowledging the consolidation. By your next payment date, you could have all of your loans rolled into one, and be enjoying a much simpler financial life.

This is the second installment in our student loan series. Be sure to check back for updates…

Filed under: Student Loans

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