consolidating student loans

The easiest way to reduce your student and school loan debt is to consolidate student loans. Consolidating student loan results in lowered debt and payments if the average interest after consolidation is lower than it is before. This is really just refinancing one or a group of consolidating student loans, at a lower interest rate - just as refinancing a mortgage loan at a lower interest rate would reduce monthly payments and the total amount paid of consolidate school loans.

There are two basic kinds of consolidate school loans - private and federal. Federal school loans are almost always at a much lower interest rate than you could get for an unsecured private consolidate school loans. Because of the nature of the federal loans, you should never be consolidating school loans in both private and federal loans into a single private loan. Because only federal loans carry government backing, they can be refinanced at a much lower interest rate through consolidating school loans than can privately financed consolidate school loans. So when you come to consolidate school loans, do the federal loans together then look at consolidating school loans.

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