Is student loan consolidation right for you?

Student loan consolidation can reduce your monthly payment, extend your repayment period and combine monthly payments to multiple lenders into one monthly payment.

Consolidation may not be the answer for everyone, though.  If you are able to afford your monthly payments, or if your Stafford, PLUS, GradPLUS or Perkins loans are eligible for incentives, reductions or forgiveness, you may want to consider some alternatives to consolidation.

Some alternatives to student loan consolidation

• If you are interested in monthly payment relief, you may qualify for an extended, income-sensitive or graduated repayment schedule.  These schedules can drastically reduce your monthly payment either temporarily or for the life of the loan.  If you would like to look into these options, please contact a client relations specialist at 1-800-337-6884, or email your request to edservicing@edfinancial.com. 

• If you are interested in a fixed-rate loan, you may want to wait for the new variable rates to be published for the upcoming academic year.  These rates will become effective July 1, 2008.  Although there is no guarantee, all early indicators are pointing to a drop in rates.  If the rates were to go up, you would still have time to consolidate to take advantage of the existing lower rates.

• If you are interested in a single monthly payment and all your loans are serviced at Edfinancial, you will automatically receive combined billing for your loans through our combined billing service. 

Whatever your decision, make sure it's an informed one.