School Loan Consolidation?

Student loans college grads should be reviewed for consolidation. College loans have a variable interest rate, or adjustable rate; this means payments can go up unexpectedly. Recent graduates can expect rising rates, but using a federal student loan consolidation calculator is the only way to determine if getting a new loan is the best deal.

Loan calculators are available on almost all lender web sites, but they require guesses as to what interest rates will do. My best guess, and very close to standard federal loan rate consensus, is 8% in 2007 and 9% in 2008. I would suggest looking at what lenders are currently offering, try using a calculator, and consider if loan consolidation is right for you. This page contains partner banks which you can visit to try calculating if loan consolidation is worth it for you.

If you are considering purchasing a house loans are an important consideration. Having multiple layers of debt such as car or school loans cause some stress in paying the monthly bills. If you are making high monthly payments, you should strongly consider consolidating your student loans into a single fixed interest rate loan. Even if it looks like staying with the variable rate loan will be cheaper, the liability of a house and house payments may make you want to secure the monthly student loans to secure your ability to make the house payments.