Student Loan Consolidation

Student Loan Consolidation is becoming more and more popular now a days. Many banks are offering Student Loans Consolidation loans now a days.

Definition: – Student Loan Consolidation -

- This repayment tool combines a borrower's multiple student loans into a single loan, which results in substantially lower monthly payments and interest rates and in a longer repayment period. With student loan consolidation, borrowers have only one monthly student loan payment to make, instead of different payments to various lenders. Students may avail themselves of student loan consolidation for most federal loans, such as Perkins, Stafford, and Direct loans and for private education loans.

Explanation: -

Student Consolidation Loan is again a highly controversial subject. According to some Finance Gurus, you should take a Student Consolidation loans because of convenience of payments (Single Monthly Payment only) & low interest rate.

While according to some other Finance Gurus, Why to take a Student Loan at all especially you know that education system is no longer effective to ensure any kind of financial success in your life? This is a time of Recession & there is a severe job crisis in the job market than why to take a huge loans to take ineffective degrees that have no value in the market?

Another logic is that, Why not invest those money into starting your own Business & creating jobs rather than struggling hard in the economy to get a safe & secure job? According to some Finance Gurus, If you can’t afford Education than simply drop it down the idea to take a higher education and start your own Business but never think of taking huge student loans up to your eye balls.

While other Finance Gurus argue that, Student loan is the Asset producing loan because it is the Investment in your own Education.

So At last, Student Loan consolidation is a good idea according to some Finance Gurus while according to some it is a trap to hold you in the economy so that you work like a slave.