Many recent college graduates have heard about many different companies out there that will provide them with federal student loan repayment services. But how do you figure out which company to choose? Which company is going to offer you the best deal and the best service? Is it worth doing a lot of research to find the best deals, or is everyone pretty much offering the same thing?

Here are some important things to keep in mind while you're looking into your federal student loan repayment options. You are required to notify the loan company of your graduation date. You will have a six month grace period after you graduate to consolidate your student loans. If you choose not to, you will be required to make the payments on your loans, every month, on time. Even if you don't receive a bill, statement, or payment book, you are still responsible to make your payments on time. If you don't pay on time, your loan(s) will go into default, and that will create a whole new set of problems. If your loans are in default, you can not consolidate them.

Keep in mind that student loan repayment programs are free. Any reputable company offering these services will not charge you a penny. How can that be? These companies are making their money from the company who is underwriting the new, consolidated student loans. If you find a service that wants to charge you for anything pertaining to your loan consolidation, run in the other direction.

Look for a company that is offering a low interest rate. Some will reduce your interest rate by 1.25% or 1.50%, etc. Some are higher, some are lower. Remember this is not the interest rate itself, but the percentage of how much they can reduce the current interest rate on your federal student loans. At Student Financial Advisors, we can lower your interest rate by 1.85%. You can shop around to try and find a better interest rate reduction, but I think you will find that hard to do. I'm sure you'll find all kinds of ads on the internet offering things like "REDUCE YOUR STUDENT LOAN PAYMENTS BY 50%" or "SAVE UP TO 60% OFF YOUR STUDENT LOAN PAYMENTS". Don't let these numbers sway you one way or the other. Anyone who is refinancing their federal student loans will save at least 50% of their current loan payments. The exact amount will not be determined until the company can look into the federal system, see exactly how much you have in loans, and then calculate your new loan amount. It could be higher, but in most cases, not lower. You should not be obligated to follow through with the new loan until you have been informed of how much your new payment will be, and that you have agreed to the terms and conditions. As with any federal student loan repayment program, there is never any penalty for paying off the loan early, or paying more than the minimum monthly payment. So make sure that this is clearly stated in the loan contract you sign.