How to Consolidate Your Student Loans

The types and names of student loans can be extremely confusing for borrowers. Fortunately, the student loan consolidation process is very simple. As a rule of thumb, most federal student loans can be consolidated. If you have a private student loan - such as one from a bank or another private lender - you also may be able to consolidate under a separate program.

Submit an application: The first step in consolidating, or even learning about consolidating, requires an application. This online process is safe and secure and requires only basic information. No need to worry about obligations or fees.

Begin the process: A student loan consolidation specialist will contact you and go over the application. It's here that you'll provide your specific information and complete the official application. The process is simple and brief and will help you determine if you are eligible.

Review your options: If you are eligible for consolidation, your application will be processed. You will receive a proposal outlining your consolidation options, including the repayment plan, how much it will be each month and how long the repayment lasts. This is when you officially decide to consolidate.

Your creditors are paid: The end of the consolidation process comes when your original lenders are paid. It's extremely important for you to monitor your mail and make sure you keep making your monthly loan payments while you wait for the consolidation to be finalized. Your consolidator will notify you when the process is complete, and will explain how to pay your consolidated loan.

Pay a single loan! Now that you have only one loan to pay, the process is simple. Just send one check each month - or even better, pay online - and watch your debt disappear! Before applying for consolidation loans, make sure you look through the student loan consolidation programs.