How Student Loan Consolidation Programs Can Make Clearing College Debt Simple

The life of a student is understandably difficult when in college, with limited income and lots of hard work to do. But after graduation, the pressure to repay their college loans begins to be applied in force. Thankfully, that pressure can be alleviated through a student loan consolidation program.Unfortunately, getting a university education is anything but cheap, and since they are unable to work full time, students need to take out loans in order to pay tuition fees and cover living expenses. Surveys have shown the average college graduate leaves college between $30,000 and $50,000 in debt. Therefore, managing college debts becomes their first concern in the working world.But through a consolidation program, these student loans can be repaid swiftly. The only question is which plan is the right one to choose, and whether the compromises that may have to be made are acceptable.Why Consolidation Is a Good IdeaThere are few ways quite as effective at clearing college debt as a student loan consolidation program. But it is important to understand that applicants have choices, with different lenders having differing terms and conditions. Choosing the right program is the only way to enjoy the benefits on offer.But how does consolidation work? Basically, consolidation means bringing a number of things together to create a stronger position. When it comes to managing college debt, this means paying the balance of a number of existing college loans with one single consolidation loan. This ultimately means 4 or 5 loans are cleared, and replaced by a more manageable and more affordable debt.The new debt is more affordable because, with 5 interest rates replaced by one, and the term of the consolidation loan lengthened, even student loan balances adding up to $50,000 can be dealt with with ease.Choosing Federal ConsolidationThe issue of which kind of student loan consolidation program is the right one depends on the type of loans that were taken out. For example, when federal loans were used to pay for college fees, it is usually best to seek a federal consolidation program. The alternative, from a private lending source, can rarely offer sufficient benefits.Private consolidation loans are not difficult to get, as they are effectively new loans to anyone wanting funding. All they need to do is meet the criteria to get approval. However, federal programs are a different matter. The structure of the original loans are completely different, so managing college debts granted by a federal source is different.Principally, federal loans are different because their interest rates are low compared to those from private lenders. However, student loan consolidation options include a Direct Loan or an FFEL Loan. The Department of Education grants Direct Loans, while FFEL Loans are granted by private lenders, but are subsidized by the government.Consolidation Program CriteriaFor those seeking qualification for a private student loan consolidation program, everything is pretty straightforward. The criteria rests on the applicant being able to repay the new loan on time, so a source of income and a reliable employment status is required. After that, it is a matter of affordability.However, for federal programs, the privilege of managing college debt through consolidation is reserved for those in genuine need. What is more, an FFEL Loan can only be secured when repayments have begun and the ability to make them does not exist.And with the term of these programs stretching to as much as 30 years, reducing the size of monthly repayments, the task of repaying even large student loan debt ($75,000 to $100,00) is even affordable.