Following an expensive college education, graduates are stuck with a ton of debt from student loans. This education has been foreseen as a primary necessity by all, and has consistently become more and more expensive. Hiring a good faculty is one of the primary motives of a college, which escalates the cost of providing education even more. Apart from the actual tuition fee, there are several other expenditures that are incurred by students on a daily basis. Overall, the total course tends to leave the students under a ton of debt, just as they gain their bachelor or postgraduate degrees. In such a scenario, there are two key problems that plague students. In cases where they want to pursue higher education, they are either denied further loans, or are forced to borrow at ridiculously high interest rates. Thus, by the end of their educational degrees, they are burdened with a truck load of debt consisting of high rates of interests, credit card debts with high APR's, and other small loan debts which had been borrowed. In such a case, if a student decides to refinance or consolidate loans and debt, appropriate advice is needed. Consolidation of Student Loans It is principally a debt consolidation loan which combines previously borrowed loans and credit, and gradually pays off the debt plus interest payable of all. Though this is just an overview of the process that is involved in consolidating student loans, make sure that you do loads of research regarding the loan which you are planning to opt for. There are several options that will help you with your debt. As the name suggests, it consolidates or sums up all the loans and debts which you have borrowed. These amounts are paid off with a requisite interest, plus a closure charge. Then you start paying back the entire amount to the lender, which is charged with a very low interest. This is a secured loan and terms of repayment span for a couple of decades. Thus, the loan does clear off all the debt, but simply reduces the burden of several installments, and makes the entire deal a much simpler and easier transaction. Thus, after borrowing a student loan, you can have a lower rate of interest, and also some more years to repay your debt. Consolidation Advice

• Firstly, visit any student loan consolidation calculator, and estimate the total amount that you owe your lender, and also the total interest (or the closure charge that you owe).
• Note that not all loans are subject to consolidation. However, direct PLUS loans, Federal PLUS loans, Federal insured student loans, auxiliary loans to assist students, Federal supplemental loans for students, national defense student loans, Federal Perkins loans, national direct student loans, direct subsidized and unsubsidized loans, guaranteed student loans (GSL), Stafford loans, and all recognized student loans by banks which have been underwritten properly, can be consolidated. Hence, check how much of your debt can be subjected to it.
• Next, approach potential lenders, such as banks and recognized financial institutions. You can either visit their websites, or you can send a formal inquiry. You have to find out two important things: the interest rate (or APR), and the maximum limit for which you can borrow the consolidation. Several consolidation companies and banks have comprehensive programs like Chase consolidation loan, NextStudent private consolidation loan, and Wells Fargo private consolidation loan.
• The rates of such programs are quite low, and in most cases your credit score is also not taken into consideration; only your income and the security or collateral is scrutinized.
• It is always recommended that you avoid private student loan consolidation. Advice of such a kind is given in some cases, as private loans tend to have a higher rate of interest.
• After you have all the data in front of you, calculate the total amount that you would owe to the lender on a monthly and annual basis. Also consider all fines and penalties which would be levied on you, in cases of installment default.

If you can easily afford the monthly installment which ideally is 30-50% of your income, then making the payment becomes easier. Disclaimer: This article is for reference purposes only and does not directly recommend any specific financial course of action.