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Need to know how to find out what the student loan consolidation rates are? Well you’re in luck, because there is an easy method to calculate student loan consolidation rates.

Essentially, all you need to do is calculate the weighted average of your current loan. Once you have this calculated, you round the number up to the nearest eighth of a percent (0.125%). Lets run through an example of how you would calculate the student loan consolidation rates to get an understanding of the formula.

To make the calculations for student loan consolidation rates, we will need to know the different interest rates and what portion of the debt they pertain to. Lets say that on half of the debt we have to pay 8.5%, on the other half the interest rate is 5.6%. The calculation for the student loan consolidation rates would look like this then:

8.5% x .5 = 4.25

For the second half of the student loan consolidation rates calculation:

5.6% x .5 = 2.8

Taking those two totals we add them together, 7.05%. But, as you recall, you need to round up to the nearest eighth percent. Since our total is 7.05%, our actual estimated student loan consolidation rate would be 7.125%

As you already know, student loans are not like normal loans. You may also have noticed that in our example the new interest rate isn’t much different than it was when it was split into two student loans. When you calculate student loan consolidation rates they should just be taken as an estimate.

The big improvement you get with student loan consolidation is through combining multiple sources of debt into a single low monthly payment. This improves your credit score by lowering the number of outstanding debts you have, as well as giving you more money each month.

Student loan consolidation rates are generally low, but they are spread out over many years, anywhere from 10-30 years. This means that you will end up paying much more over the long run than on a standard loan.

Are you eligible for student debt consolidation loans? Well, let me ask you this: Are your student loans federal or private? This is the first thing you should look at before you attempt to take out a student debt consolidation loan.

To be entitled to federal student debt consolidation loans, you must have at least $20,000 in outstanding loans. If you have defaulted on these loans, you will not be eligible for student debt consolidation loans.

If your student loans are private, you must meet the the following criteria for student debt consolidation loans. First you have to have between $10,000 and $150,000 in debt. Again, you cannot default on the student loan.

When you have both federal and private student loans, one thing you should think about is consolidating them separately rather than taking out a single student debt consolidation loan. The reason you would want to take out two student debt consolidation loans rather than grouping then into one is because of the interest rate.

The federal student loan will have a lower fixed interest rate than private ones. They also have a benefit the other does not. That is, you can defer your federal student loans due to financial adversity. This is something you cannot do with your private student loans. And this is the reason you do not want to group both types together when you apply for student debt consolidation loans.

How you consolidate your private student loans depends on if you have an undergraduate degree or a graduate degree. For an undergraduate degree you will need to acquire a co-signer for your student debt consolidation loan. If you have a graduate degree, however, you will be able to take a student debt consolidation loan without one.

Getting student debt consolidation loans for private loans is much the same as those for the federal equivalent. Once you have put in the paperwork for a student debt consolidation loan with your lender and have provided them with all of the required information, your various debts will be rolled into a single monthly payment.

This is the best part of student debt consolidation loans. Rather than being forced to pay multiple lenders, you only have to pay one. This cuts back on the amount of interest you will be forced to pay each month and improve your credit score.

As you can see, there are some things to keep in mind when you look into student debt consolidation loans. But when done properly, you can get a loan with favorable conditions that will save you a lot of money over the long run.

Read more about Student Loan Consolidation.

I have already explained two methods to consolidate your student loans in: Student Loan Consolidation – Things You Should Know

Now it is time to expand the actual benefits you get with student loan consolidation. If you’re currently undecided if consolidation is right for you the following three reasons should help convince you the time is right. So let’s get started and explore the reasons why you will want to begin thinking about consolidating your debt.

After all student loan consolidation isn’t as foreboding as it sounds, and once you take a closer look at it you will see that it can be rather easy.

Firstly, when you consolidate you will be collecting whatever bills you have each month into a single payment. This will of course make managing all of the different loans much easier. But it also greatly lowers the amount of interest you will be paying each month.

Some rates such as those from a Direct Loan given through the federal government can be as low as 5.6%. Compare that to what you are currently paying and you may have to put your eyeballs back in their sockets. Some private lenders can have astronomical interests rates. By consolidating them you can put a lot of spending money back in your pocket at the end of the month.

Another benefit is that the Direct Loan can have an extended payment plan. For example 30 years. This makes the monthly payments very low.

Secondly, when you consolidate your student loans you stand to improve your credit score. Your college career is very expensive and it often means that you will be graduating with more than just student loan debt. Many credit card companies offer cards to college students. And when you add all of this debt up you will be faced with a low credit score.

This has become a fact of life for many college graduates in the United States, and it doesn’t look like it will be going away any time soon. So that is why it is important to take the initiative and consolidate your student loans.

Once you have a manageable payment plan you will be able to build a respectable credit score. This is important when you want to take a new loan out. With a higher credit score you will be able barrow money again at a lower interest rate.

And lastly, by consolidating you are making your life easier all the way around. With one bill you will not be caught off guard when it is time to make a payment, nor will you be making a bank rich on unnecessary interest.

Remember when you’re finished with college student loan consolidation is your new best friend. It will make your life easier in almost every aspect pertaining your debt. And with the current financial crisis, consolidation for many is the only solution. Trust me, you’ll thank me once all of your student loans have been consolidated!