To pay for college, most students will usually need to take out at least one student loan. Some people may even need to take out several loans throughout the course of their schooling. Getting these loans is often relatively simple, compared to other types of loans. Many students, however, may find that paying back multiple student loans at once is overwhelming.

Student loan consolidation is a way to help alleviate the burden of paying back student loans. To do this, a lender will generally combine several loans into one large payment. Many students will often have smaller monthly payments and lower interest rates afterwards.

There are two types of student loans that a student can use to pay for their post-secondary education. These are federal and private student loans. Federal student loans are from the federal government and have low fixed interest rates. Consolidating federal student loans is possible, but many financial experts advise not to consolidate federal loans with private loans, since federal loans typically have better terms on their own. Private student loans will have variable interest rates, meaning that the interest rates may change from one year to the next. Depending on many factors, it may be a good idea to consolidate student loans from private institutions. A person with bad credit, for example, may not be able to secure a lower interest rate.

A good credit history takes time and most people need to work to improve it. A person can apply for a major credit card or some other form of credit. Making timely payments on all bills will eventually help build a person`s credit up over time. Any late payments on a credit history can lower a credit rating, which can make it difficult to get the best interest rate on loans.

It is recommended that students request a copy of their credit histories before consolidating their student loans. This report will list any late or deliquent payments. All old debts should be paid off as soon as possible. Anyone who believes that there is inaccurate information on their credit reports should dispute it.

Recommendations for good financial institutions can be obtained from people you know. The majority of financial institutions will have different terms regarding their student loan consolidations, so it is important to look around. For instance, some institutions may have a higher interest rates. Some financial institutions might even charge penalties and fees for paying off the loan earlier than expected.

After students have consolidated their loans, they should maintain a good relationship with the lender. One easy way to do this is to not be late with payments. Doing so would negatively affect the student's credit history, making it harder to get other types of loans in the future.