Student debt consolidation is the process of

consolidating several types of loans into one

debt. This results in reduced monthly payments-

which results in a lot of saved money in the long

run. Consolidation loans will have fixed rates-

giving you an added benefit on saving to recover

your debt.

Such services can be obtained by American

Education Services consolidation- or AES for

short. You can save up to 50% on your bill with

this service- a very good value indeed. ACS

consolidation is also available- and is much like

AES in terms of how it works. Federal

consolidation and Network consolidation also work

in nearly the same way- giving you many choices.

Not only can you save a good deal of money on

your bill- but you get the added benefit of

having just one bill a month- not several. This

can reduce stress and let you route your energy

to other problems, instead of worrying about

which bills you should pay.

You can generally choose debts that will last 10-

30 years generally. You may get lower payments,

but the total amount to be paid will be higher in

the long run. It has been debated as to whether

the government should allow such consolidation

among the Federal consolidation service only.

This would put some banks and companies at a loss,

such as the AES consolidation or ACS

consolidation, but may be better for students in

the long run. Federal consolidation has a very

good rate- and is often better than banks or

other companies can do. You will also not

encounter hidden fees or tricks- making Federal

consolidation an easy choice. This isn’t always

the best way to go- as some companies actually do

have lower rates. But make sure you get a second

opinion before you decide on anything for certain.

With such consolidation, you can lower you

monthly payments. However, you will want to

debate the decision, as you will end up with 10-

30 years worth of debt to be paid. The

consolidated debt into one bill can be less

stressful, but often this is a small benefit when

considering long term effects. You may wish to

pay separate bills and have the freedom of paying

off your student debts as fast as you can-

certainly much faster than 10-30 years worth of

debt.

If you are looking into student loan

consolidation- make sure you look at your options

first. Rushing into student loan consolidation

can put you into a huge debt that will take you

many years to recover from. If you are on the

verge of bankruptcy, or desperately need the

money, consolidation is the best choice for you-

but keep in mind you will be paying your decision

off for many years to come. If you are looking to

simplify paying your bills, this is probably a

bad choice- and this decision shouldn’t be taken

lightly. You should talk to a consolidation

broker, or ask help with your bank for more

information to see if this is right for you.