Student Loan Bill Consolidation - Which One Should You Choose - Federal Or Private?

College is expensive. Not only do you have to consider your tuition fee; but you also have to consider textbooks, room and board, just to name a few. You have managed to graduate from College with the help of multiple student loans, now that you're out of College with a job you need to consider how to pay for these loans. There are programs and companies that can help you manage or handle your loans for you. You may have tried to apply or inquiry with some student loan consolidation companies but found their plans were not flexible enough or right for you.

With no loan consolidation a graduate may have started paying for multiple student loans. Having different creditors, payment dates, interest rates, it can get confusing. One way to make paying these creditors easier is student loan bill consolidation. Student loan bill consolidation allows you to work with a professional management person. These professionals handle your account loans. They will turn your multiple student loans into one new loan, to be paid to one creditor. These professionals study your financial history. They will talk to your creditors.

A reputable consolidation company may be able to lower your interest rates and waive certain charges. The interest rate should be considerably low from your previous creditors. They study your loans and your current costs. They look into each creditor's information: terms of agreement, interest rates, fees, etc. They study each loan in detail to find the suitable repayment plan for you. Once they find possible loan solutions or repayment plans for you, they consult you. Because you are a part of the development of your repayment plan, you can get the best repayment plan suitable for you, one that you are sure you can be able to pay, a plan you know that you can pay on time and still be able to afford what you need.

Student Loan Bill Consolidation has two types: Federal and Private.
- Federal loans are funded by the U.S. Government, they provide low interest rates. It's always advised to first apply for Federal Bill consolidation before private.
- Private student bill consolidation has higher interest rates then federal. These are handled by private companies.

There are a few requirements for student loan bill consolidation:
- You need to have graduated or should be out of school.
- You would need to be already repaying your student loans and in the stated grace period.

With student loan bill consolidation, being one loan, you're now able to track your loan. You should be able to pay your loan on time without being confused with other loans as you may have before. One important rule that you should remember is to always pay your consolidation bill on time, failing to do so would result in having it in your credit history.

When considering a consolidation company, do your research. Not all companies are reputable companies. Look for referrals or any evidence to support their creditability. It would be best to ask other graduates, those that are almost done with paying their loan.