What is consolidation? Student loan consolidation is when you gather up all your student loans and hand them over to one company that charges you one monthly rate. The main benefit of consolidating is that your monthly payment will be lower.
Other Benefits:
Consolidating your student loans has other benefits. The following are a couple more of them:
-Only one payment a month: Consolidating simplifies your finances by allowing you to write only one check instead of several checks.
-Pay less: You can reduce your monthly payment.
-Build your credit: As soon as you choose to consolidate, your new lender will pay off your old loans and merge them to make 1 new one. Since your previous loans got paid off, your credit history looks better.
-Lock in interest rate: If you had federal loans the interest rate fluctuated every year on July 1st. By consolidating you'll lock in one low rate.
Student consolidation loans are great because they are easy to get. Employment isn't required and you don't even have to have collateral or a cosigner. You don't even need good credit!
Disadvantages: