Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Getting a Debt Consolidation Loan and other Debt Consolidation topics.
If you were fortunate enough to go to college, chances are you are paying dearly for it each and every month. Most college students take on multiple loans in order to finance their education. These loans generally come at very low interest rates from the government because they are used for schooling. Some people even call it ‘socially acceptable welfare'.
For graduates making those monthly payments, welfare is hardly the word to describe student loans. Student loan debt consolidation is offered by the government for just these types of scenarios. The trick to student loan debt consolidation is that the government allows it only once. Therefore, it is important to perform your debt consolidation when the rates are right.
The benefits of student loan debt consolidation are obvious – you get a reduced interest rate, a longer payoff term, and a single payment instead of the several you were paying before. Combine the reduced rate with the longer payoff term and you can clearly see that you will be paying far less each month for your minimum payment. You don't even have to be a college graduate to see the benefits of student loan debt consolidation.