Student Loan Consolidation – it’s everywhere! You learn about them through the flood of postcards you find in your mailbox each morning… You read about them through the spam of emails sent to you… and it pops up on your screen every once in a while when you surf the web.

But what exactly do you need to know about student loan consolidation? What are the things you need to ask about and most important, what are the questions you should be asking yourself?

The first question to ask is WHY. Why would I need to consolidate my loans?

Peace of Mind

If you have numerous loans and do not have the luxury of worrying about different interest rates, billing cycles and payment schemes, loan consolidation can provide you with peace of mind. By combining all your loans into one, you only need to worry about one payment each month. This allows you to concentrate on more important things in life, like your exams or your next project.

Loan consolidation can also provide you with peace of mind, because it offers a fixed payment scheme. No need to worry about fluctuating interest rates, you can rest assured that your payments will remain the same for the entire term of the loan.

Taking Control

Once you incur debts, they have a way of taking over. Instead of you managing your finances, it often happens that your finances manage to take control of you. Since you only have to make one payment for all your loans each month, you will be able to budget your finances better.

Studies have shown that consolidating student loans can radically lower monthly payments by up to 54%, which means that you can start investing and saving for your future.

Once you have figured out why you need to figure out is: Is it for me?

Loan Consolidation does sound like such a gift to mankind; however it is NOT for everyone. One thing that you should consider before consolidating your loan is if the consolidation loan offers a lower interest rate than your present loans. If not, then consolidation is just not for you.

You must be in the six month grace period following your graduation OR you have just started repaying your loans

You are no longer enrolled in school

You have eligible loans that total to $7,500 USD or more

Your existing loans are with more than one company or lender

You have not yet consolidated your loans (If you have already consolidated your loans previously, it is important that you have already gone back to school and acquired new loans)

Now that we’ve figured out that YOU are eligible to consolidate your loans, the next important question is: Are my loans eligible for loan consolidation?

The loans listed below are eligible for loan consolidation:

1. Federal Supplemental Loans for Students
2. Direct Subsidized and Unsubsidized Loans
3. Federal Subsidized and Unsubsidized Stafford Loans
4. Direct Consolidation loans and Federal Consolidation Loans
5. Direct PLUS Loans and Federal PLUS Loans
6. Guaranteed Student Loans
7. Federal Insured Student Loans
8. Nursing Student Loans
9. Loans for Disadvantaged students
10. Health Professions Student Loan
11. National Defense Student Loans
12. National Direct Student Loans
13. Federal Perkins Loans

Once you find the answers to these questions, the next step is finding the right loan consolidation plan for you! So, get ready for some long hours of surfing on the internet, because there are so many offers out there. What’s important is to be patient in comparing the different offers and beef up on the research to make sure that you end up with the best deal possible.