Are you a parent of a student who’s about to enter college? Are you a student who’s about to pursue your college education? If yes, then you’re probably starting to think about getting a college student loan. Here are some points to ponder about student loans and debt consolidation.

It is no secret that pursuing a college degree is anything but cheap. Tuition fees, textbooks and school expenses can certainly be a great burden for both parents and students. Thankfully, there are loans that are especially designed to help students shoulder fees for their college education.

Student loans can be provided by the government (Federal Student Loans) or commercial lenders (Private Student Loans). Usually, parents or students apply for a Federal Student Loan because they come with easier repayment terms. Nevertheless, a single government loan may not be enough to cover all student expenses. This is why many students apply for more than one student loan. After getting approved for a Federal Loan, students also apply for one or two private student loans from commercial lenders.

Managing multiple student loans can prove to be a challenge. Aside from the different payment schedules, the interest rate from each loan can make repayment even more difficult to handle. This is where debt consolidation comes in. If you’ve decided to obtain multiple student loans, it is recommended to enroll in a debt consolidation program. Consolidating your debts into a single account also means paying for a much lower interest rate. Add to this, repayment becomes a lot less complicated since you’ll only have to deal with one lender.

However, if you’ve taken out both federal and private loans, it’s best to separate your federal student loan from your private student loans. Private loans are usually unsecured and have much higher interest rates than federal loans so you’ll want to consolidate these two categories separately.

Who are qualified to consolidate their student loan debts? It’s important to know that only those who are already finished or out of school can apply for a student loan consolidation. If you’re still in school but you want to start with your repayment, then you may apply for consolidation as well. Remember that in order for a loan consolidation to work, being consistent in submitting your monthly payments on time is a must.

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