The Thing About Consolidating Your Student Loan Debts

You know it and a lot of other former students know it. A higher education does not come cheap. Many students just have no choice but to opt for a loan to get them through the expense. Though a good education is an excellent investment in your future earnings, that fact may become obscure as you face the monthly obligations on loans you took out as a student.Things ChangeMaybe moving clear across country, maybe landing a job that does not pay as much as would be nice, maybe getting married, maybe getting pregnant, all this makes the student loan debt a lot more burdensome. Especially in these recessionary times, cash is tight and paying off two or more student loans seems more and more unreal.Changing ThingsYou know it is no fun having to come up with two or more student loan payments a month, each to a different lender, each at different times of the month, each at a different amount, each at a different interest rate, each with a different balance due. You can change all those things.Student Loan ThingsYou need to start investigating a student loan consolidation program. That way you will have one payment, to one lender, at one time of the month, at one interest rate, with one pay-off balance. Savings on paperwork and postage alone, and just plain old hassle, makes it worth finding a lender to consolidate all that debt.How Things WorksAdd up the amount you have to remit to each lender every month. Average out your interest rates among your lenders. (Calculators for figuring your weighted interest among various loans are available online. ) Examine the length of time it will take you to pay off each loan.You will probably find a lender who can assume all that debt, offer you a lower monthly payment, offer you at least the same or better interest rate than your weighted rate, and give you a definite future date that will mark the end of your debt. Do we hear a sigh of relief?Do Your Homework ThingThe most important thing is to do a bit of shopping around. Approach the financial aid office of your alma mater, they may be able to point you to some lenders that have been helpful to other alumni. Do a web search. You will find plenty of lenders willing to help you out. Just research carefully and always remember: caveat emptor.Continue Your Frugality ThingOnce you get your student debt consolidated, you are going to find that you have quite a bit more cash flow each month. Do not let your earlier frugality slip away. If you were used to squirreling away money to cover your student loans in the past, why not take some of that and start a rainy day fund? Sure, let the increased cash flow grease your life a little, but do not squander it all.Make It a ThingYou are now more in control of you financial present and your financial future. Do not let it slip away. Make it a thing for yourself.