WHAT IS STUDENT LOAN CONSOLIDATION PROGRAM?

Student Loan Consolidation Program is a loan repayment program for college students and graduates with multiple student loans to make their repayment easier. However, before signing on the dotted line, it’s important for students to understand some basic facts about consolidation.
It is not easy for anyone these days to go to college, there are very few scholarships and for some, they are just unattainable. This means that most people who take advanced education courses have to find a way to pay for it and getting an education loan is an answer.
There are different types of education loans, some are through the government and are very low interest loans, others are not government loans, and often can have confusing terms of repayment. Therefor it is vital that you know before you borrow what type of student loan has to be paid back, how it is paid back, and when it needs to be paid back.
You will also want to know the type of structure the loan is made under, what the interest rate is, what happens when you cannot make a payment, and perhaps even learn about consolidating your student loans into one loan, instead of a loan for every quarter or semester.
HOW A STUDENT LOAN CONSOLIDATION PROGRAM WILL HELP?
By consolidating your outstanding student loans through student loan consolidation program, you basically can enjoy at least 3 benefits:
1. More Convenient
With multiple student loans, you will have to make multiple payments every month; that means there are more paperwork and due dates to keep track of. There are more chances that you may miss one of them and cause you to make late payment. You can get rid of this hassle by consolidatethem into single repayment and make you easier to keep track only one payment with one due date and one repayment amount.
2. Save You Some Money
All loans come with interest, so do the student loans. Although student loans normally have lower interest rate, student loan consolidation program may be able to negotiate a lower interest for your new consolidation loan than all your current loan rates and save you some money on interest. For example, you have 3 outstanding loans may be required to make $150 payments each month to all three lenders. That is a total of $450 per month. After consolidation with only one payment is required and that payment is usually much less than the combined payments from all of the loans. This can be huge benefit to you especially if you are new graduate who are just getting started in your careers and who don’t have the income necessary to cover large loan expenses right away.
3. More Repayment Possibilities
Consolidating your student loans may open up additional opportunities for you. You may be offered with deferment choices and/more repayment possibilities. These offers can come in handy if you wish to further your education to another level, struggling to find employment in your field or experiencing financial hardships.
THE PROBLEM WITH STUDENT LOAN CONSOLIDATION: 
There are usually disadvantages to every decision. Check out all the pros and cons of consolidation before you do it. Here are a couple disadvantages you may want to consider: 
1. Interest rates fall every now and then. If you have consolidated, you are stuck with one rate.
2. Once you consolidate you cannot “unconsolidated”.
3. The consolidated loan will have new terms and conditions that your other loans didn’t. 
4. If you choose to extend the life of the loan you will wind up spending more (in interest) than you would have.

Since we have reviewed the benefits and disadvantages of consolidating your student loans, you should find out if you are eligible for one. To be eligible for federal student loan consolidation, you must meet a couple requirements. You have to have at least ten thousand dollars. You must be graduated as well. Finally, you must repair any defaulted federal loans before you will be allowed to consolidate.

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