A large number of college students apply for student loans in order to help fund their tuition. Were it not for student loans, many individuals could not even afford to attend college. Upon graduation, payments will begin on these loans and can often be overwhelming for new graduates. This is especially true as they begin to venture out into the workplace, searching for employment and relocating if necessary. Student loan consolidation is one way that individuals can help to manage their loan while starting their new life in their chosen field or profession.

A federal student loan consolidation plan has a number of benefits, including a substantial reduction in monthly payments. In fact, some student loan consolidation plans allow for up to 50% monthly payment reductions. Upon approval for a student loan consolidation program, some individuals may be able to receive a low fixed rate interest option for the entire life of the loan. This could result in substantial savings to students with higher interest loans.

A federal student loan consolidation plan generally requires no application fee and, at times, no credit check or co-signer. There are no pre-payment penalties and often a variety of repayment options to choose from. Among them, a plan that is based on the borrower's annual income and other factors. Loan programs allow applicants to repay their student loans for up to 30 years.

One of the many benefits of selecting a student loan consolidation is the ability to cure default student loans. If the current payments are too high or circumstances have arisen that now prevent the individual from making payments, a student loan consolidation program can help to get the payments back on track and avoid wage garnishment. After a certain period of time without payments, a wage garnishment may be ordered and may quite possibly affect the individual's income and credit history.

The process of applying for a federal student loan consolidation program includes full disclosure of current income and other financial information, along with a full name, mailing address and telephone number. Much like a standard loan application, a credit check is required before an application can be approved. There are a large number of specialized lenders that offer student loan consolidation. With various repayment plans, low fixed interest and payments combined with the convenience of one monthly billing statement, many new college graduates are finding that student loan consolidation is the first step to achieving their goals while honoring their commitment to education.