If students have many different student loans and they are all at different rates, and some of the rates are very high, the student may consider student loan debt consolidation. This is taking out a new loan that will provide you with enough cash to pay back all your other loans. Then the only loan you have to worry about is the new student debt consolidation loan. The main advantage of this is that students may be able to borrow the consolidating loan at an interest rate substantially lower than what they are paying for on their other loans. This will mean that all of the monthly payments will be replaced by one reduced payment, thus saving the student thousands.

The average American student will leave school owing $40,000 in student loans this year. Unless you plan to pay back all the money right away, which few recent graduates can afford to do, now is the time to come up with a plan. There is a six month grace period after graduation, but the goes by quickly.

There are three basic options. The student can choose for a graduated repayment plan in which the student's payments start out low, and then increase every two years. The repayment period varies from 15 to 30 years and depends on the total amount of direct loans the student owes when the loans go into repayment.

Option two is to make the standard payment from the get-go so. With standard repayment, the student will make fixed payments of at least $50 a month for up to 10 years. For some borrowers, this plan results in the lowest total interest paid because the repayment period is shorter than it would be under the other plans.

But with interest rates rising, more and more people are strongly considering going with option three student loan debt consolidations. Student consolidation loans can significantly lower your monthly payment by lengthening the term of your loans, with no prepayment penalties. Also, Student Financial Advisors offers rate reductions as an incentive for consolidating your loans through us.

The rate you repay your loans at is vitally important. Many people underestimate the influence the annual percentage rate will have on how much they repay for a loan; the difference can be astounding. The bottom line is that you want your interest rates to be as low as possible.

We are currently offering a .60% rate reduction for students who are still in there grace period. A .25% rate reduction if the student signs up for automatic check withdrawal. And finally we give a 1% rate reduction after thirty six on time payments.