Student Loan Consolidation

Video Transcript

"Hello, I'm Cherie Ashwood. I'm a guidance counselor, and today I'd like to talk with you about how to get your student loans consolidated. 'Consolidated' means lumped together, and you may find that you...you have taken out student loans to...towards the benefit of your education, that what you actually have is several different loans that have been awarded to you, either each semester, or each year. The interest rate on these loans may all be different, based on whatever the prime rates were at the time that you were awarded the loan. There are several different companies that will offer you student loan consolidation. And what basically they do is buy your loan, or loans, from your original lender. And, usually they try and offer you either a period of deferment, where you can delay payments, or a lower interest rate. I personally have several student loans that I've had consolidated, and I have a beautiful, low interest rate of something like 3.5 percent. It gives you a lower monthly payment, and a lower loan amount that I'll end up paying in the end when I finally do get them paid off. Student loan consolidation is a very good idea. Also to be offered a fixed interest rate. Sometimes your other student loans may be on variable interest rate. And as that interest rate varies, so does your payment. So, as soon as possible, and a lot of companies will consolidate your student loans even before you graduate, you want to find a good, reputable student loan consolidation company and get your loans consolidated. I'm Cheri Ashwood. I'm a guidance counselor, and your future starts today."