College Loan Consolidation

Student's guide to Consolidation and Repayment

College loan consolidation
College Loan Consolidation essentially means that when it comes to repaying the loans you took out at college, you may find the whole process a lot easier to manage.

What exactly does college loan consolidation mean?

Essentially it means that you combine all your existing private debts into one new loan. Most people find that repaying just one loan as opposed to three or four different loans helps them to manage their finances better and to budget for other things more successfully.

Will consolidating my student loans save me money in the long term?

Provided that the new loan offers a lower interest rate to the loans you currently have, you should save money. In other words, you pay back less each month giving you more money to spend on other things.

Remember, however, that extending the repayment terms will mean that you will be paying back the money for longer and therefore it may actually cost you more. In order to compare the two properly and to evaluate which option is best for you, calculate each based on the same repayment period, no matter whether that is ten years or thirty years.

Are there any disadvantages to consolidation?

There could be, depending on the types of loans you are consolidating. Federal college loans, for example, often offer grant graduates a period of grace whereby no repayments are due for six to nine months, or however long has been agreed. If you repay your federal loan with a standard consolidation loan, in most cases you will lose these benefits and will be obliged to begin your repayments immediately.

My college loans were taken out through the Federal Student Aid program. Does the FSA also provide consolidation loans?

Yes, there is range of post-graduate loans available through the FSA. The one that is right for you very much depends on the type of FSA loan that you took out to fund your education. For more information, visit the FSA’s website at




Home | Legal | Contact Us | Advertise with Us | Site Map | Privacy ©Guide4Home

Home Finance and Insurance

Family Finance
College Loans
College Loans
Student Loans for College
Federal College Loans
Private College Loans
College Loans for Parents
College Loan Consolidation
Low Interest College Loans
ACS College Loans
College Loan Corporation


Back to: Finance & Insurance Home Page