Five Steps to Finding Good Student Loan Consolidation

No matter which way you cut it, getting a higher education is well worth the cost. The self-confidence it provides is alone worth the financial outlay. But then, there is a lot to be said about feeling grounded in a discipline that will lead to a satisfying career and a thoughtful existence. Of course, all this high-sounding rhetoric does not mean a lot when thousands of dollars of debt are adding a big burden to your budget.Fixing Finances for the FutureAs folks mature, they are looking to start a family, buy a home, drive a worry-free car, and just generally spread out. Cash-flow is a serious concern. Having student loans with different lenders, different interest rates, different terms of repayment, is probably an inconvenience, or maybe a financial disaster. Finding a good student loan consolidation program can help.Getting a Reasonable Rate to Help You ConsolidateInstead of sacrificing peace of mind, poorly juggling the monthly budget, or turning into a credit risk, most graduates benefit by pulling their various student loans into one pile. With consolidation and one monthly, affordable payment, along with an acceptable interest rate and terms that are comfortable, student borrowers can save their budgets and ease their minds.Consolidation CalculationShould you have a number of private student loans, a private consolidation lender will help you out. The interest rates and fees are usually figured with a combination of factors, among them the prime rate and a spread determined by your credit history (FICO).Five StepsShould you choose to be prudent and consolidate your student loans, you need to do everything you possibly can to qualify for the most amenable terms and rates. Shopping around for the best consolidation lender will save you thousands over the length of the loan. These five steps should ensure your consolidation success.One: Check Your Credit ReportsYou need to get a handle on how potential lenders see you by checking your credit with all three credit bureaus, Experian, Trans Union, Equifax You also need to get a copy of your FICO score. These are readily available on the internet for a modest fee, or in some cases, free.Two: Figure Your Weighted RateYou then need to figure your interest rates across all your loans. Called the weighted rate, it is an average interest rate that you will want to at least obtain, or hopefully go lower, when you approach a lender. Calculators are available online.Three: Research Possible LendersA most crucial step, go online and compile a list of at least ten distinct student loan consolidation lenders. Do not curtail your search to less than that. Being lazy can end up costing you thousands.Four: Compile a Research LogStart a research log. You do not have to, but putting it into a spreadsheet, like Excel, or just starting a well-organized journal, will help immensely. Include the name of the firm, contact names and numbers, published rates. Even the quality of the website can come into play. Listen to your gut is always good advice, too.Five: Determine the Five Best LendersOnce you have you list, whittle it down to the best five and start your applications. Plug the same data into each application so you can get some comparable rates. You can iron out details once you start working with a specific lender. Again, no less than five or you are cheating yourself.Worth the ChallengeOnce you have your five quotes in hand, draw the leading lender. Knowing what interest rates are within your range, how well you do your investigation of lenders, both can help you lower your monthly payment towards your education. The convenience of one bill, to one lender, at one interest rate, is alone worth the challenge.