December 30, 2005

The Consolidation Report

I don't know about you, but my personal experience when it came to first accruing, and then paying off student loans was one fraught with debt, debt, a little bit more debt, and then some more debt. Which of course led to nearly countless offers in the mail from student loan consolidation experts. Apparently, I wasn't the only only one struggling with my college student loans.

Now, something I learned about student loan consolidation companies is, they're a very persistent bunch of people. Once they've decided you're a ripe candidate for consolidating student loans, they go after you like a top basketball player in the draft. If you have student loans that need consolidating, let me assure from personal experience, you will have no problem consolidating your college student loans. Granted, you still won't necessarily be guaranteed to pay off your student loans and be debt free; but at least all those pesky college student loans will be consolidated, so you can just look at one nice consolidated loan you can't make payments on.

I kid, mostly. Consolidated loans can be handy, and there are benefits to consolidating student loans, provided you lock in a decent interest rate, which. . .

That's really the most important part about consolidating your student loans, you see. A low interest rate. As eager as student loan consolidation companies are to get you to consolidate your student loans, they're not all that keen on securing a nice, low interest rate for you. In fact, the larger the interest rate on a consolidated loan, the happier they seem to be.

So, as useful as consolidating your student loans may be, it's kind of pointless to consolidate those student loans, and any loans, really, if you end up paying more in interest then you did previously. You should write that down.

As a veteran survivor of crushing college student loan debt, as well as a veteran of hordes of student loan consolidation companies sending me junk mail and spam e-mail, I'm here to tell you: student loan consolidation can be a good thing, but be sure to shop around until you find a student loan consolidation company that offers the lowest interest rate that's possible.

Otherwise, I think you'll find you'll be paying off your college student loans, consolidated or not, on into the afterlife. Maybe even longer.

Posted by Ryan at December 30, 2005 02:37 PM | TrackBack
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