Going to college or university can be a very expensive proposition. Even if you do have some funding options such as an RESP, you may find that the costs are more than you have saved especially if you change the direction of your studies. For most people these means making several different student loan payments each month for each the different student loans that they needed while in school.
Making multiple payments for multiple loans can cost you more in interest and my make the repaying of your loans much more difficult. For most people the best solution is to consolidate the student loans debts into one loan meaning they only make one monthly payment to cover all the debt. This usually results in a lower interest rate, a smaller monthly payment and easier terms for the loan. For example you may be able to pre-pay your loan, make lump sum payments without penalty or even defer a payment if you are in a bind.
While many lenders offer debt consolidation loans your best option is to seek a student debt consolidation loan which is usually available from where ever you originally got your loans. A true student loan is your best option since the interest rate will be lower. The interest rate is determined by averaging the interest rates on all of you student loans. This total amount of interest can not exceed 8.25% on you consolidation loan.
Student loans and student debt consolidation loans are available from any bank or credit union that works with the Federal Family Education Loan Program or directly from the U.S. Department of Education. Student debt consolidation loans are a one shot deal unless you go back to school and acquire new debts. For this reason you must shop around and try to find the best deal the first time. Since this is a federal program the interest rate will be the same regardless of who offers the loan but some lenders may offer perks such as further discounts for prompt payments or using automatically withdrawals from your account.
In order to be eligible for a student debt consolidation loan you must have loans from more than one lender and that total more than $7,500. You must also be in the 6-month grace period following graduation or have already started to repay your loans. You may also seek a consolidation loan if you have already consolidated you debts and then went back to school.
If you have multiple student loans then a consolidation loan is your best option. A consolidation loan will allow you to make one monthly payment, most likely give you a better interest rate and perhaps offer other perks that may save you money. As with any loan be sure to shop around a little and get the best deal possible. Get the most from your education and protect your future by reducing your debts as fast and efficiently as possible.