Suggestions For Consolidating Student Loans

Upon graduation from college or university, a student may face owing large sums of money to lenders that helped finance his or her educational career. As many new graduates do not yet have established careers, they often cannot pay the required amount of money each month to satisfy their obligations. As such, people often choose consolidating student loans to alleviate their financial burdens.

In general, former students have grace periods of six months, during which they do not have to make loan payments. This period will give them time to find work and settle in new places, to pay for necessary expenses such as cars and furniture for a home or apartment and create a savings account before they must begin paying for their student obligations.

Yet many are often shocked to learn that, during the grace period, lenders charge interest, which is then added to the original amount loaned. These additional charges increase the amounts owed substantially in most cases, making payments impossible and not manageable within their budgets.

Should this incidence arise, people may be advised to consolidate their loan amounts. By this, consolidation companies buy, or essentially pay off, the original loans and then create one new obligation on which the student is expected to make one monthly payment. These companies often guarantee a fixed interest rate and establish a stationary monthly payment amount.

Beginning the process early after graduation ensures that none of the loans will go into default status. In fact, many universities’ financial aid offices counsel students to start looking for and contacting consolidation companies at least one semester prior to graduating. Acknowledging one’s debt until waiting until the last minute to manage payment obligations helps the person maintain his or her credit rating and allows for the opportunity to borrow again for any future educational endeavors.

Finding the best company with which to do business is important. As the process involves a person divulging his or her personal information, like a social security number, address, phone number, and contact information of friends and family members who can verify the applicant’s location, the individual should research online and by asking other people to find out which companies have good reputations and which ones have engaged in unscrupulous practices.

Consolidating student loans allows former students to manage their financial obligations and plan their budgets according to what they owe for their educational pursuits. Bringing the amounts owed into one single loan allows for ease of payment each month and perhaps even the benefit of taking advantage of one interest rate.

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Student loans is one of the most helpful ways we could have a college education. It could be difficult for us to face it in the long run but consolidation companies i think are always available to lend us a hand.


My daughter is now on her first year at the university. She can actually get a student loan if she wants to, but we feel that she should not take one because she has to pay it back once she graduates. Sure, the interest rate is favourable, but we don’t want her to incur a debt before she is gainfully employed.


Loans for tuition fees are really helpful. Yet, it is a fact that these loans became a burden to the students upon graduation. This must be helpful.

Burcak Savas

It makes a lot of sense to consolidate students loans. I wonder if the international students in the US can consolidate their loans after college or grad school, too.

Jeffrey A. Ruth

I am very disappointed to learn that lenders often charge interest during the six month grace period. Financial aid offices being aware of this doesn’t help. Perhaps schools simply shouldn’t offer the loans from lenders who do this.


Each student should prepare from the start to prepare to pay that loan. They can take jobs during college, part time jobs so that they can make some money and save it for the future. I think that the companies mentioned above might be a good idea but there is interest so that’s a con. But anyhow, it reduces the pressure so I think it’s good.


Many of my friends have consolidated their student loans. It’s the best way to pay off interest and debt.

Maya Pillai

Students who have taken loans from various sources to fund their education have to repay them once they have found employment. However, if they have not started paying its likely to accumulate into a real burden later on. Therefore its better to go for one student loan consolidation.

Layla Summers

Well once we all graduate ofcourse there are going to be debts and the position is complex one because once you start working all your money is spent even before you can get into your account. In such a position it is always a good idea to budget carefully and for a few years until the loan is paid up moderate your spending. For example don’t buy too many expensive things, go on expensive holidays etc this way you can save more and be free of your debts quicker.

Beena SC Nair

Nice article.Yes the students have to carry a big burden in the initial stage itself due to their educational loans.Some of them fortunate enough to get good job early and payoff their debts,some are not.But I think the Consolidation details could be elaborated still more.



Thank you for this information. Consolidation companies are doing a good job by paying off initial loans. It lessens the burden on students who have just begun to work and earn.

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