| Most new graduates usually do not earn much at their | | | | insufficient balance in your bank account. |
| first jobs, making it difficult for them to meet their | | | | Another thing to keep in mind is that, although you'll |
| student loan payments. If you need to lower your | | | | enjoy student loan consolidation benefits in the form of |
| monthly payments, and you anticipate that you'll be | | | | lower monthly payments, in the long run you'll end up |
| earning more in the future, then consolidating your loans | | | | paying more in interest rates. Since loan consolidation |
| may be the answer to your problems. When you | | | | can increase the repayment term from the standard |
| consolidate your student loans, you'll be making smaller | | | | ten for student loans to as much as thirty years, you |
| monthly payments since you'll be repaying the debt | | | | may end up paying as much as double or more of the |
| over a longer period. This is one of the major loan | | | | interest you would have paid on your non-consolidated |
| consolidation benefits. Other benefits include making | | | | loans. However, you can reduce the amount of extra |
| only one monthly payment rather than multiple | | | | interest you'll end up paying by increasing your monthly |
| payments to several lenders, no penalties for early | | | | payments once you can afford to do so. |
| repayment or overpayment and the interest payments | | | | Those pursuing careers in low-paying fields may also |
| are income tax-deductible. | | | | want to consider an income-based repayment (IBR) |
| Student loan consolidation benefits also include interest | | | | program rather than loan consolidation. Under an IBR |
| rate reductions offered by lenders to those who sign | | | | plan, your monthly payments will be capped at an |
| up for automatic direct debit programs and make | | | | amount based on your income and family size, |
| prompt repayments, in order to encourage borrowers | | | | although you will be paying off your loan for 25 years |
| to sign up with them. On the average, you will get a | | | | rather than the standard ten years of student loans. |
| 0.25% discount if you direct-debit your payments and | | | | However, if you qualify, any remaining balances after |
| a 1% discount if you have paid promptly for 36 months. | | | | 25 years will be canceled. Still, if you believe that |
| You should be aware, however, that you will lose the | | | | student loan consolidation benefits outweigh any |
| reduction permanently if you are late with just one | | | | potential drawbacks, then you should sign up for a loan |
| monthly payment. Even if you're enrolled in direct-debit, | | | | consolidation program. |
| you can still be late on a payment if you have an | | | | |