Student Loan Consolidation Help Student loan consolidation and federal student loan consolidation can be the solution with several benefits. Student loan consolidation relives the stress from your mind and the complications involved paying back to different lenders and at different interest rates. Now you just have to make payment to one lender and at one interest rate. Student loan consolidation is a wonderful alternative when you want to boost your monthly cash flows. Consolidation is the merging of all your loans into one single loan policy. Student loan consolidation occurs when you roll all of your student loan payments into one low monthly payment. When you consolidate student loans, you can lower your monthly student loan payment by as much as 60 percent. Student loan consolidation rates can be reduced slightly, a half a percent, if they are consolidated before the end of the grace period for repayment. This period is usually six months after a student has dis enrolled from an educational program. Student loan consolidation may extend your repayment term, increasing your overall financial obligation. However, your monthly loan payments may be reduced. Student loan consolidation is excellent - for losers. Learn to take charge of your finances. Interest rates for student loan consolidation programs are at record lows, and it costs nothing to consolidate. Interest accrues during this time. You may pay interest immediately or defer it until it is capitalized. Interest rates of 3-month LIBOR + 1.00% to 3-month LIBOR + 1.75% during the first year and 3-month LIBOR + 5.00% to 3-month LIBOR + 5.75% after the first year. Interest rates vary quarterly. Lender information is used by the consolidation company to send payment and is required as part of the consolidation process. By accessing the National Student Loan Data System with a federal PIN (the same number used to complete the Free Application for Federal Student Aid online), students can find the type, amount, and lender information for each of their federal student loans. Lenders are all subject to the same interest-rate formula, although they may charge less than the maximum allowed. Federal law also establishes the payback period. Lenders have a stake in your financial health. This is why they offer consolidation loans. Lenders may offer a break on your interest rate if you agree to make your payments through automatic debits each month or if you make consistent, on-time payments for a specified period of time.