| When you consolidate federal student loans, you | | | | outstanding federal student loans. So by consolidating, |
| replace all of your existing federal student loans with | | | | you have paid off several loans at one time - either on |
| one easy to manage loan. Why would you want to do | | | | time or early. That improves your credit score.Why is |
| this? Here are four reasons why you will want to | | | | that important? If you decide to get a mortgage, a car |
| consolidate your federal student loans.If you have | | | | loan or any other type of loan for that matter, you will |
| several federal student loans, each loan requires you | | | | receive a lower interest rate. And that saves you |
| to make monthly payments that, when added up, can | | | | money. |
| be a heavy monthly burden. By consolidating your | | | | In the case of a mortgage, it can save you thousands |
| federal student loans into one loan, your monthly | | | | (or tens of thousands) of dollars.When you apply for a |
| payment will be much less. That makes your debt | | | | mortgage, lenders look at your current monthly debt |
| much more manageable at a time when you probably | | | | payment and compare it to your income. If your |
| need your money the most.Also, by lumping all of your | | | | student loan payments are greater than 8% of your |
| federal student loans into one loan, you simplify the | | | | income, you may not be eligible for a mortgage. By |
| repayment process. It's much easier keeping track of | | | | consolidating your federal student loans, you can |
| one monthly payment with one lender instead of | | | | reduce your monthly payments so that you meet the |
| keeping track of multiple loans with multiple lenders, all | | | | 8% (or less) criterion and get that mortgage you're |
| with different due dates.Another benefit of | | | | after.When you consolidate federal student loans, you |
| consolidating is you can get a lower interest rate. This | | | | lower your monthly payments, make life easier by |
| helps offset the cost of lowering your monthly | | | | dealing with only one loan instead of several, get a |
| payments and extending your loan. A lower interest | | | | lower interest rate and improve your credit score. All |
| rate over that extended period of time can add up to | | | | of these benefits to you make this financial step a |
| significant savings.When you consolidate federal | | | | very smart one. |
| student loans, the consolidation loan pays off your | | | | |