Student Loans and Debt Consolidation

When to consolidate your student loans:

In a conventional debt consolidation program, only include your student loan if you have credit card debt or other unsecured debt to consolidate.  It is not recommended that you place your debt portfolio into consolidation if it is only made up of student loans.

There are much greater benefits for you (when you only have several student loan companies to pay) that can be realized when you obtain a consolidation loan  specifically designed for that purpose to fit into your budget.  Our company does not offer these types of loans.  However, you can find lenders that specialize in consolidating student loans.  These lenders can accomplish lower payments for you by extending the payoff term of your loans from the traditional 10 years to 15, 20 and sometimes 30 years.  A simple search on the internet will reveal many lenders looking to assist you.

You have probably found that you can defer your student loans if absolutely necessary.  However, interest will continue to accrue.  Additionally, the debt affects your debt to income ratio which, in turn, affects your ability to obtain credit.

Keep in mind that it is important for you to liquidate student loans as quickly as possible even though you have obtained the funds at lower than conventional loan rates.   

Be informed.  The largest debt you owe is to yourself.