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Step 1
Set up a free account with the federal government student loan database system to view all of your educational debt. This database compiles student loans from federal, state and some private sources. (See Resources) Print out this information when you start shopping for a consolidation rate.
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Step 2
Choose a payment plan that suits your lifestyle right now. Sure, you want to get your student loans paid off as soon as possible but if you set too high of a monthly payment, you may be in trouble later if you face unforeseen expenses. On the other hand, with a lower payment, you can still send more money in every month to quickly decrease your overall debt.
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Step 3
Expect to wait as long as three months for your loans to be consolidates. If you start the process while you’re still in the loan deferment status, you will receive the best student loan consolidation rates. If you wait, or if you miss a payment or two your rates may be higher, so start the consolidation process as soon as possible.
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Step 4
Consider keeping private student loans separate from federal student loans when you consolidate. Since these loans have different initial interest rates, you may already have a lower rate on your federal loans than you could find with many student loan consolidation rates. Negotiate with the new bank better rates for the federal student loans.
