As you prepare to graduate and in the weeks right after you finish college, lenders will probably start to send you consolidate student loan debt offers. Hopefully, you are already familiar with consolidation, and you understand the pros and cons. If you’re not sure whether or not you should consolidate student loan debt, consider the three biggest benefits:
* Your new loan will carry a fixed interest rate instead of variable rates
* Multiple student loans will be lumped together for one easier payment
* Your monthly payments can be lowered as you extend the period of your loan
Regardless of which lender you choose, you can enjoy these three basic benefits if you consolidate student loan debt. Since the federal government caps the fixed interest rate you will pay, you may wonder why you should bother shopping around to choose a lender to consolidate student loan debt. Why not choose whatever lender makes what seems like the best offer, and get on with it?
The most important reason to shop around for a lender to consolidate student loan debt is because companies offer a variety of valuable discounts. The interest rate on consolidated student loans is capped, but there’s no reason a lender can’t offer you a discount on that rate – and many will.
The key is to carefully read the fine print on each lender’s offer to consolidate student loan debt. How hard is it to keep your discount over the life of your loan? Choose a lender that doesn’t make it difficult to earn or keep your discount, and you’re much more likely to benefit with long-term savings.