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How Consolidating Private Student Loans Paves the Way to a Better Future

The pressures of repaying college debt are huge. But consolidating private student loans is an effective way to ease the strain, and paves the way to a smoother start to a career.

College debt is something that students and graduates must face up to. But the pressure of repaying this debt, which that can typically range between $30,000 and $100,000, is huge. Thankfully, by consolidating private student loans the pressure is eased by quite some margin.

There are plenty of lenders who offer well-structured private consolidation programs, specifically for handling college debt. These programs are designed to greatly reduce the size of monthly repayments, in a manageable time frame. Students and graduates are given a chance to build their financial futures, while lenders get their money back.

However, student loans are often comprised of large sums, so it is important to identify which programs are the best ones to choose. This usually comes down to the terms offered by lenders.

How Consolidation Works

The idea that consolidating private student loans gets the students off the hook is not at all accurate. It is more accurate to say that consolidation simply restructures the repayment schedule - the repayments still need to be made. It is the same principle which regular lenders benefit from when their debts are restructured.

Repaying numerous loans at the same time is a complicated process. Each loan has a set repayment date, a repayment sum and their own individual interest rates too. This whole situation ensures that the total debt repayments each month are far higher than they need to be. With the terms of a good private consolidation program the monthly sum can be cut by half.

The reason is that student loans, just like every other kind, can be bought out, ensuring that the lender is repaid in full and that better terms are negotiated for the new loan. In this way, the debt becomes affordable.

Private vs Federal Loans

There are two kinds of student loans available - private and federal. The general difference is federal loans are granted with the support of the federal government, a fact which means that lenders can afford to reduce the interest rate. But when consolidating, private student loans are a different matter.

This is because the terms offered by private lenders are usually the terms that are most troublesome. Federal loans are structured to be more affordable, so buying them out complicates this issue of real benefit. But the terms of private consolidation programs can be of great benefit when dealing with private loans.

So, by consolidating the numerous student loans secured over the course of 3 or 4 years of study, pressure is lowered considerably. For federal loans, however, there are federal sponsored consolidation programs to consider too.

Necessary Qualifying Criteria

There can be no doubt that consolidating private student loans is a positive step towards better finances. It could mean, for example, monthly repayments of $800 being reduced to just $400, and freeing up more income for other things. Basic criteria to accessing these private consolidation programs can vary, depending on the lender.

But often a student must have a minimum debt (perhaps $10,000), have a low income and, in some cases, graduates must have already repaid a minimum of 50% of the total college debt already. However, it is essential that the specific terms are examined before agreeing to the program. StillPsychology Articles, the chance to finally tackle the debt from student loans is too good to miss.

Article Tags: Consolidating Private Student, Private Student Loans, Private Consolidation Programs, Consolidating Private, Private Student, Student Loans, College Debt, Private Consolidation, Consolidation Programs, Federal Loans

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Devora Witts is a certified loan consultant who helps people get approved for Loans for People with Bad Credit and Bad Credit Mortgage Loans. To get aid with your financial situation you can visit her at

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