Phoenix, AZ -- (SBWIRE) -- 06/24/2013 -- Anyone who has attended college knows how very expensive it is. Most university-goers rely on federal and private loans to pay their tuition and fees. That’s fine, except for when the time comes to begin repaying those loans. That’s why Credit-yogi.com is here to share tips on how to consolidate student loans, such as:

- Benefits of Consolidation
- Private Loans
- Federal Loans
- Obama Student Loan Merging

Know More About Student Loan Debt Consolidation.

Benefits of Student Loan Merging

Looking into how to consolidate one’s student loan(s) has many advantages. One is that there won’t be multiple separate loans to shell out money for every month. Another is having a single payment, for which an individual will be offered several repayment options. The best “perk” of merging all of one’s student loans is the reduced payment amount. If a graduate tallied up the individual payment amounts he had prior to condensing them into one payment, he would see the savings.

Private Loan Combining

Dealing with how to consolidate one’s student loans seems daunting, but it isn’t difficult. One important thing to remember is that private and federal loans cannot be consolidated together. Check out and compare banks’ and credit unions’ interest rates (especially credit unions’ as they’ll be lower) and terms to ascertain that one gets the best of each. Credit unions in particular are an excellent choice when it comes to getting great rates, as they offer 4.75%, 5.75%, or 7.75%, depending on the underwriting process.

Consolidating Federal Loans

Direct Federal loans are known as Perkins, Stafford Loans, and PLUS loans for parents. Answering how to consolidate student loans can be done easily. For Direct Loans, go through the Direct Consolidation Loan Program. The Federal Family Education Loan Program provides a consolidation option, as well. Generally, the application for consolidation begins online. Gather all of the pertinent loan information, including account numbers, any pay offs, and financers. Federal consolidation loans are no-credit-check loans, so even if one’s credit score is low, no worries; he can still merge his loans into one.

Loan Consolidating via the Obama Plan

President Obama’s administration developed a plan to address how to consolidate student loans (s). Part of that plan is to know what kind of loans one has – Federal Direct or Federal Family Education. Once one has that information, if he has one of each type of loan, he can apply for a Special Direct Consolidation Loan. The advantages of this program include an extra-low interest rate of 0.25% on an FFEL, and if he becomes part of the auto-payment program, he’ll be eligible for a credit of another 0.25%.

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