One of the best ways for a student to be able to manage their debt when they graduate from college is student loan reconsolidation. When you are attending college there are a lot of loans that you have to take out in order to be able to pay for tuition, books, rent, and other school related expenses. These loans were probably a combination of federal and private and are probably for high amounts. Many students choose to reconsolidate student loans in order to combine all of their monthly payments into one payment. There are a lot of advantages to reconsolidating student loans and there are also some rules that will be handy to know.

There are a few differences in federal student loan reconsolidation and private student loan reconsolidation. If you have federal loans you will find that it is fairly easy to get them reconsolidated. All you need is a good looking credit history and you should have no troubles. If you have private loans you may find that it is a bit of a challenge. You will need to have a great credit history and they lender will look extensively into your credit profile. Still, if you have more than one student loan you will find it very advantageous to get them reconsolidated.

When it comes to student loans reconsolidation there are a few rules that you will want to look at. These will help you to know if you qualify for reconsolidation as well as let you know what to expect when you start looking around for a lender.

One thing that you will want to keep in mind is that you will need to have a loan balance of at least $7500 in order to find someone to do your student loan reconsolidation. You will find that if you have a balance over $10,000 there will be a lot of people that will help you consolidate all of your student loans.

Reconsolidating other types of loans could involve some significant fees, but there is no fee when you are reconsolidating student loans. This is great because it saves you money on your loan amount.

This next one is important. If you are trying find someone to do your private student loan reconsolidation you must talk to the lender that you have your loans with. Most students take out all of their private loans with one financial institution for simplification. The lenders who make these loans has the right of refusal which means that you have to go to them before checking other places so that you can find out if they want to work with you and help you to reconsolidate student loans. Essentially your existing lender would have a right of first refusal option when you are looking to reconsolidate student loans.

If you have taken out your student loans with a bunch of different financial institutions you are under no obligation to work with any of them if you do not want to. You can choose any financial institution that you would like to use for your student loan reconsolidation without giving any of them the right to refuse.

You will find that most student loan reconsolidation rates will fall between 5-7 percent depending on your credit and the lender that you go to. These are great low rates that will make it easier for you to be able to pay off your loans a lot faster. The interest rates are lower while you are still attending school or during your six month grace period after you graduate. After the grace period, the interest rate will adjust to the normal rate for the loan.

Check around in the community that you live in. You may be able to get your student loans forgiven by teaching, practicing law or medicine, or if you are in the United States military. These are great ways to do a job that you love while having your student loans forgiven.

You will only be able to consolidate federal student loans one time. Private student loans will be reconsolidated at the discretion of the lender that you go to. This means they could be consolidated more than once if your lender approves.

Consolidated student loans have prepayment penalties. If you are able to pay more than your monthly payment then you should be sure to write "payment on principal" at the bottom of the check that you send in. This way you do not have to worry about being penalized for wanting to pay off your debt early.

If you keep a good payment record with the lender that you are getting your student loans reconsolidated with they may lower the interest rate that you are paying. Usually it will take about three years for them to take a look at your payment record and if you would like a lower rate you will have to ask them for it. A lower interest rate is a huge advantage and is worth bargaining for.

The last thing to know about reconsolidating your student loans is that federal loans cannot be rolled in with other types of debt. You will not be able to roll in your credit card debt, car payment, or any other type of debt. These loans are for educational costs only. Private loans are different. When you are reconsolidating your private student loans you will be able to roll all of the debts that your lender approves of into one single payment. This can do wonders with reducing the overall amount you end up paying back since your higher interest debts with credit cards will be rolled into a low interest reconsolidation loan.

Student loan reconsolidation is very beneficial to students who do not want to make payments to all of the places they received their loans from. With one monthly payment you will be more likely to pay your bills on time, and you will be able to keep up with the total amount that you owe. Be sure that you check in to all of the rules and qualifications from the lender that you choose to reconsolidate your student loans with. If you fall within all of the guidelines, lenders will work with you and give you the payment options that you are looking for.