Student loan debt consolidation is a great option to consider after graduation. Many people don’t consider their financial options until school is finished and reality sets in: it’s time to pay back those loans!

Most student loans are set up on a semester or a yearly bases, which means that graduates have multiple loans in place that have monthly payments. Many times a new graduate can roll all of the smaller student loans into one consolidated loan– which will allow the graduate to lock in a lower interest rate and pay just one monthly payment each month.

There are 2 main types of student loans that are available: federal student loans, and private student loans. Most students have federal student loans, because they are usually the easiest student loans to obtain. These federal loans are administered through the US Department of Education Student Aid programs.

The second type of student loan is a private loan that is obtained from a standard lending institution such as a bank or credit union. Usually private student loans have higher interest rates than federal student loans.

It is not uncommon for a student to obtain multiple types of loans (both private and federal), but it is important to keep them separate and not mix them together after graduation. It is a good idea to consolidation both types of student loans, but you will need to roll the federal student loans into a separate consolidation from the private loans.

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