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A good thing about student loans is that they are easy to obtain: the government makes it easy to borrow for education purpose and lenders too recognize the benefits of dealing in this huge market. We know that university education is essential for success in life.

But university education is also expensive and today students have to borrow from multiple sources and avail all types of student loans: both secured and unsecured. Sometimes the debts increase and are difficult to repay in time.

This is where student loans consolidation comes in; it makes loan repayment easier and more affordable. Usually you are free to consolidate your loan after the six-month grace period that follows graduation. This is because during the education phase the interest rates are low. If you cannot keep up with the loan payments and are considering consolidation then choose the right time to do so: find out the current interest rates and if there is a dip then you could definitely visit a lender. Consolidation offers you stability as you will only be making one payment each month. This allows you to get your personal finances in order and plan in advance for the monthly expenses. Check to see if your lender has been authorized by the Federal Family Education Loan (FFEL) Program to conduct student loan consolidation. You can consolidate subsidized and unsubsidized Direct and FFEL Stafford Loans, SLS, Federal Perkins Loans, Federal Nursing Loans, and Health Education Assistance Loans. However, you cannot consolidate loans taken from private lenders not authorized by FFEL.

Eligibility criteria for the loan consolidation depend upon your existing credit rating and the loan amount that remains pending. Most lenders require a minimum of $5000 of loan. The interest rate of the consolidated loan is the weighted average of your existing loans; it is not supposed to go above 8.25%. Also keep in mind that there are no costs attached to a student loan consolidation process except the slightly higher rate of interest. Beware of lenders that try to charge you any kind of fees: stay away from those that mention upfront fees for student consolidation loans.

Loan serialization and loan forgiveness are alternatives to student loan consolidation that students can consider as well.

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