My Experiences Consolidating Student Loan Debt
College is about to start up again around the country, and with college comes a huge amount of financial aid, including big student loans. Some students need to take the time to think about consolidating those loans.
When I was a college student, I had my fair share of college student loans. After a while, I got tired of paying different companies all the time so I thought about consolidating all of those student loans into one or two loans so I could more easily keep track of them.
My Student Loan Consolidation
When I applied to consolidate my federal student loans, I was happy to know that I would have two loans to pay instead of four or five smaller ones from different loan servicing companies.
Here’s what Dave Ramsey says:
However, I remember that I had to make tough decisions because the loan rate for the consolidation loan was slightly higher than the average of the loans that were being consolidated.
I went ahead with the consolidation loans knowing that I would be paying a higher interest rate, but I paid off the loans so quickly that the rate difference was negligible.
Make sure you weigh all the pros and cons before you consolidate your federal student loans. Remember that there are restrictions on the federal student loan consolidation program.
Student Loan Consolidation
The U.S. Department of Education has a Web site dedicated to student loan consolidation to help students combine all of their loans into fewer loans. I used this service myself a few years ago when I wanted to consolidate my student loans.
It is best to visit this site’s designated page on how loan consolidation may benefit you, noting that it is not always the case that loan consolidation is the right thing to do for everyone.
If you have a child or sibling who is starting up college again this fall, you need to make sure they are applying for all of the financial aid that they can get. About the worst thing a student can do is put their expenses on a credit card that charges a high interest rate.
I recommend that students visit the United States Department of Education’s federal student aid Web site. This site can give you almost all the information you need about applying for student aid such as grants and loans.
Note that your student should also apply for every single scholarship that he or she had any chance of getting. It does take time and effort to finish all those forms, but it could be worth it if they win even one scholarship.
Also, make sure to complete the federal student aid FAFSA application as early as humanly possible. The sooner you can complete it, the better. Getting financial aid is hard work and you need a plan of action.