There are a number of student loans and can be categorized into two main types: Federal Student Loans and Private Student Loans. The Federal student loans are disbursed through the US Department of Education's Federal Student Aid programs, and are the easiest to obtain. The private student loans are obtained from standard lending institutions and banks, among others. You can use both types of loans to fund your education, but when it comes to your Student Loan Debt Consolidation, never mix up the two together. Start by consolidating your Federal student loans first. The benefits of student loan debt consolidation of your Federal loans is that: o The rate of interest is lower o It reduces your monthly payments as the term of loan repayment is increased to 30 years, depending on the loan balance o The repayment is consolidated to a single check payment each month. You are eligible to go for your student loan debt consolidation of your Federal loans when you are not enrolled in school any longer; you are actively repaying your loan or are in your six-month post-graduate grace period; you have a minimum loan amount of $10,000. The reason why you should never mix up the Federal and private loans during student loan debt consolidation is that the interest on Federal loans is tax deductible; you can defer payments when you go back to school; and the loan is forgiven for certain types of service. Private students loans do not have these advantages as they are treated just as normal loans. Mixing up the Federal and private loans during student loan debt consolidation makes you lose all the benefits of the Federal loans consolidation. Go for student loan debt consolidation to lower your debt burden, as once you have graduated you have to start paying back your loans.

Student loan debt consolidation is a exactly what it sounds like it is, a process where someone that has a substantial balance on several different students can consolidate all of those loans into one single manageable balance. This would also turn what may be several different loan payments into one single monthly payment that is much more affordable. Consolidation may also substantially reduce the amount of interest the individual may be paying as well, depending on the financial institution that you use.
The cost of getting a college education has greatly increased in the United States in recent years. As the job market has become more and more difficult to penetrate in some markets, many people have opted to go back to school in order to further their education. However, education is a huge expense and once the schooling has ended, you'll soon be receiving payment notices in the mail.
Student loans by design are already low interest loans. They also have very flexible payment terms. However, many students have difficulty trying to make or keep up with the payments. Much of this may depend upon the current job market, the type of degree earned or other issues.
Consolidation loans are designed to create a manageable situation where an individual may either reduce or even potentially eliminate part of the principle balance of the loan. The ability to reduce or eliminate the principle balance of the loan will depend upon the type of loan it is, the situation, etc.
If for some reason you are not able to reduce or eliminate the balance of your loan, then a student loan debt consolidation loan may be your best option. There are 2 types of student loans that you can choose from - Private and Federal.