Online Student Loan Consolidation

Written by Mark Sanfilippo
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If you are one of the tens of thousands of students or former students who is carrying a large amount of student debt, then chances are you've heard something about student loan consolidation. Student loan consolidation can be a great way to streamline your payments and even lower your debt. To make things even easier, you can now even consolidate your student loans online.

There are a number of student loan consolidation companies out there that offer online consolidation. This can be a great option, but there are a few things you might want to keep in mind before you click your way into a consolidation situation. First and foremost, you should find out if consolidation is in your best interests.

Consolidation works best for those who have a series of outstanding Federal Direct Loans all with varying interest rates. These loans can then be combined into one loan that will usually carry a lower interest rate than any of the individual loans. If you happen to have both private and Federal loans, then it may not be in your favor to combine them all into one loan. In that case, it would probably be better to consolidate your Federal loans into one separate loan.

Don't Pay for an Application

If you look at your options and perhaps even speak with a representative and decide that consolidation is indeed in your best interest, then you will likely have to fill out some sort of application. This should be a free process, and you might want to steer clear of companies that want to charge you to apply. In fact, the entire consolidation process should be free, and a company that asks for a consolidation fee is probably one that it would be best to avoid.


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