How to Consolidate Student Loans

If you're out of college and having trouble handling your debt, you might want to consider consolidating your loans. This is a common problem for college graduates, but there are many options for you. Here are some steps for consolidating student loans.

Things You'll Need

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Instructions

    • 1

      Be sure your credit history is in proper standing. This will help you get more favorable terms.

    • 2

      Get a copy of your free credit report from one or all of the three major agencies (Equifax, Experian and TransUnion). Check it for accuracy and make sure to fix any problems.

    • 3

      Run your numbers through a couple of different loan calculators to see if you'll benefit from a student loan consolidation. There are many of these calculators available on the Internet.

    • 4

      For federal consolidation, you can apply online. Federal loans should be consolidated separately from private loans, as the rates and terms for federal loans are much better.

    • 5

      For private loan consolidation, it's highly recommended to talk with a loan counselor first.

    • 6

      Shop around. Call your bank and some local lenders. Look around on the Internet, too. There are thousands of companies that offer private loan consolidation.

    • 7

      Compare their loan terms and run your numbers through some calculators again to choose a private consolidation lender that is most favorable to you.

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