|
Education
and School Loans
The easiest way to reduce your student and school loan debt is
to
consolidate student loans. School loan consolidation results
in lowered debt and payments if the average interest after consolidation
is lower than it is before. This is really just refinancing one
or a group of federal student loans, at a lower interest rate -
just as refinancing a mortgage loan at a lower interest rate would
reduce monthly payments and the total amount paid.
There are two basic kinds of school loans - private and federal.
Federal school loans are almost always at a much lower interest
rate than you could get for an unsecured private school loan. Because
of the nature of the federal loans, you should never consolidate
both private and federal loans into a single private loan. Because
only federal loans carry government backing, they can be refinanced
at a much lower interest rate than can privately financed school
loans. So when you come to consolidate school loans, do the federal
loans together then look at consolidating your private student loans.
References and Links
1. Student
Loan Consolidation - General information and eligibility information
for student loan consolidation, with lenders and other student loan
companies
2. Consolidate
Federal Student Loans - Details on federal student and school
loans, with resources and student loan comapny lists for consolidating
your federal student loans.
|
