The price of getting a degree today is high enough that many people do not even want to risk the debt, even though having even only an associate’s degree can greatly impact overall earnings. If you do stick it out, it is often necessary to take out multiple loans to cover just one year’s tuition. When you take into account that most degrees take four or more years to complete, it can mean a single degree takes over 20 separate loans.
Just One Bill
After graduation, when the time comes to start paying those loans back, a lot of disparaging loans from all different kinds of banks can make the process even harder. Each one has a different interest rate and a different minimum balance that is required to be paid each month. What would you rather have in the mail, 20 different bills of all different amounts or one single bill that is consistent each month? The answer is pretty self-apparent.
Consistent Interest Rate
Student loan federal consolidation is the process in which the federal government combines all your current student loans into one. If you choose to have your student loan federal consolidation done, you will have one flat interest rate and a consistent payment and billing amount, as well as just one bill from your student loans. This takes an incredible amount of the stress and chaos student loans can cause away from the recent graduate.
Probably the best thing about student loan federal consolidation is the federal part. Whatever your politics, it is nice to know when the federal government takes over a program because if it is put into law, it cannot be changed because of financial and economic changes without due process. With federal consolidation, you will never see your interest rates increase over time or your minimum monthly payment amount increase out of nowhere. That is the benefit of having your loan taken over by the government instead of a private bank that has its own agenda.
Making It Easier
If you have a lot of loans from years of an academic career and it is starting to become confusing, you should think about student loan federal consolidation. There are a lot of debt consolidation places that offer similar services, but none of them have the consistency and reliability as the federal version.