≡ Menu

Young couple looking at a house shaped cloudBuying a dream house is a great realization of one of your life’s main goal. You can now start to build a family and have little kids playing in the front lawn with your dog trying to run with them. Weekends would mean grilling food with your friends and neighbors at the back yard. while the children are swimming in the pool.

With this scenario playing in your head for as long as you can remember, you troop to a private lender to apply for a mortgage loan. As you sit there, your college life flashes right in front of your eyes. You see all the times you had to ask your parents help in filling-out the Free Application for Federal Student Aid or FAFSA. You now start a mental count of all the student loans you took out and used to pay for college.

There are a lot consumers who are looking to get the same dream. And there are actually a lot of people who are already making payments on that dream house. In fact, Federalreserve.gov shares that the total outstanding mortgage debt as of first quarter of 2014 is at $13.2 trillion. Only the student loan debt amount comes close to this at $1.2 trillion.

As you do the mental computation, you hope that the lender can see through your college debt amounts and see that you have the potential to be earning big amounts in the coming years. You hope that they see your employment will be a steady source of income and understand that your salary will have nowhere to go but up.

Challenges in purchasing that dream home

There are quite a few challenges in buying a dream house and the most glaring obstacle are student loans. This is especially true for recent graduates or for students who have simply separated from school. The student loan, which allowed the student access to higher education is now a prohibitive amount as they try and pursue their dreams armed with a college education.

There are some people who feel that they are being punished for wanting to better themselves and get a college education. Their desire to have a better life comes at a hefty price in the form of college debt. And those goals like buying a dream house now seems much farther from realization. Here are some of the problems of consumers who want to get a mortgage loan but has student loans

  • High student loan debt. The amount of student loan will play a part in the overall assessment of the lender of your application. It is not the only thing they will look at but it can influence their decision to approve your loan. The bigger your debt, the higher your debt-to-income ration will be. This is what lenders look at to verify how much more income you have to make possible payments of the mortgage loan. The higher the ratio, the bigger the possibility of possibly skipping a payment when faced with tough financial challenges.
  • Inability to save up for a downpayment. The bigger your student loan payment amount, the harder it is to save up for a downpayment on the house. Once you graduate or simply separate from school, there is more to life than just student loan repayment when it comes to expenses in the household budget. There are living expenses to think about and possibly some credit card bills. You might also be renting which will increase the monthly expenses. All these factors contribute to a smaller amount that you can put aside for downpayment.
  • Starting salary is not ideal for mortgage payments. With all the expenses every month, your starting salary might not be able to accommodate all the payables every month especially when a mortgage payment is added. It may still be able to barely cover all the payables but not having anything left after settling all financial obligations can set you up for debt down the line.
  • Credit history is also important. This is something not all graduates have worked on or prioritized while still in school. The main agenda was to pass and graduate with the degree. But the credit score is one important factor for the lenders. They see this not as the applicant’s ability to pay but the borrower’s attitude towards payment. The higher the score, the better they are in handling payments. The lower the rating, it means that there is a big possibility that they might miss the mortgage payments just like the other payment they have missed in the past.

Addressing the challenges to make that purchase

With all these in mind, how will a graduate proceed in buying a dream house? Are they left with just the repayment on the loan and settle for a rent? Graduates need to remember that there are always solutions to problems. It may not directly solve the issue but there are ways to soften the blow. Here are a few things that could be considered to increase the chances of getting that dream home in spite of a high student loan.

  • Consolidate your student loan. This is a great repayment program once you start repayment on your student loans. It is important to look at student loan consolidation reviews to look for the best company that can help you in your goal of making repayment as easy as possible. These experts can help you look assess your current situation and with that, look at various options available especially in repayment.
  • Income dependent repayment. Once you consolidate your student loans, it is best to look for an income dependent repayment plan. There are about four of these types in federal student loans according to ED.gov. These are Income-Based Repayment Plan, Income-Contingent Repayment Plan, Pay As You Earn Repayment Plan and Income-Sensitive Repayment Plan. This can help you lower down the amount you have to repay for your student loans.  Though you must understand that it will also increase the interest payment over the life of the loan.
  • Weigh the option of a private mortgage insurance. If you are really unable to make the 20% ideal downpayment in buying a dream house, you can still  opt for a lower downpayment. But you will have to factor in payment for a private mortgage insurance or PMI. This covers the lender in case you default on the mortgage loan. This amount will be added to the monthly payment. Compare the amount of your monthly mortgage with PMI versus your rent.  If the former is lower or just slightly higher than the rent, then that might just work.
  • Establish yourself first or look for extra source of income. Your salary negotiation skills will be put to test in your interview before you join in the company. Most businesses will really have a set salary amount for new hires and there is nothing you can do about it. While you are trying to prove yourself in the workplace. consider looking for a part time or a side business you can operate on a flexible schedule. An added source of income can be a great advantage when you are buying a dream house.
  • Pay on time all the time. To address the credit score, try to make payments on your financial obligations on time all the time with the right amount or higher. Making payments on credit cards in a timely fashion can help improve your credit score. This goes the same for your student loans. While you are preparing to make that home purchase, do not forget to make payments on your student loans because missing them might hurt you in the long run.

Minimizing the effects of student loan while in school

ASA.org shares from a recent survey of student loan holders that about 75% of the respondents said that their student loan has, in one way or another affected their decision in buying a dream house. This is a big number and would have an adverse impact on a consumer driven economy.

Buying a dream house should not start when you are already sitting on the chair across a lender. It should start earlier in life and that desire can help guide you in making better financial decisions especially with student loans.


Steps To Appreciate Consolidation Reviews

Business holding a magnifying glassConsolidation reviews are able to help a lot of student loan borrowers in choosing the most appropriate company to help them in consolidating their college debt. This is an important part of the process especially as the students are graduating year on year with an increasing debt amount on their rookie shoulders.

According to USAtoday.com, 2014 graduates are looking at $33,000 average debt amount. After all their hard work in college, they need to exert more effort in repaying that amount. And this is a tough challenge right out the bat. This amount could already set the borrower off on a high note if it was not a debt to be paid.

It can put a downpayment on a house, a nice fund to kickstart retirement savings, it can also be a safety fund for emergency situations. That amount could also be used to fund capital requirements for a start-up business venture. But instead of all of these, the borrower needs to raise this amount only to pay to student loan lenders.

But this is the tail end of the program and a borrower must also take into consideration that that amount was also an investment into getting a good and quality education. That is a potent tool in trying to land a high paying job or at least a decent one where they can work their way up the corporate ladder.

But even with this, student loan borrowers about to enter repayment need all the help they can get and this is where consolidation reviews can come in. Loan consolidation is a great and effective tool in making sure that the debtor is able to meet all the financial obligations by streamlining the administrative part of repayment.

How to find what you need to appreciate consolidation reviews

Just like in most things in life, the advantages of any service is only as good as the need of the borrower. But even before getting to that, a debtor would benefit in understanding a few things about their need and how it translates to finding the right company to help them consolidate their student loans.

  • Accept your current situation. This is similar to all those 10-step self improvement process where the first order of the day is accepting that you need help. All the benefits and advantages of consolidation review would not amount to anything. After accepting that you are in a situation where help is a welcome reprieve, the rest can come easy.
  • Figure out your stress points and what you need. The next step is finding out the areas where you need the most help with. It could be making the payment on time, lowering down the monthly amount or locking in an interest rate. It is best to list them all down and prioritize one by one.
  • Understand the concept of loan consolidation. The next step is understanding the real concept of loan consolidation. The main role of the program is to help the borrower make the repayment on the student loans as easy as possible by combining all the student loans under one account. This is where all the benefits emanates from.
  • Look for the benefits you need. Consolidation reviews lists down various services of top student loan consolidation companies in the industry. These services becomes a benefit and an advantage to you depending on your need. It is best to look at these services with your need on top of mind. This can help you screen and look for the services that you really need.

Remember these tips before choosing the company

As consolidation reviews help a borrower look for the bset services out there in the industry, there are some things you needs to be remembered before signing on the dotted line.

  • This will be a longtime partnership. One of the things that most student loan borrowers tend to overlook is that the working relationship with the consolidation company will not be a short stiny. It will be a years of working together in paying off the student loans. If the repayment period is 25 years, that is 25 years of working with the company.
  • You need to be comfortable with the company. If the working relationship is that long, the borrower needs to be comfortable with the company they are working with for their student loans. More than the professional working relationship, the company must be attuned to the borrower’s needs and priorities and have a proactive approach on your account.
  • Other people’s seal of approval. Customer feedback is important to look at and consider as well. This is because the company is offering their services and would always put their best foot forward. But current and previous clients of the company will not sugarcoat any shortcomings of the company. They will air their side of the story. It is best to listen and read what their experiences are with the company.
  • Industry stamp of professionalism. Another voice of authority are the industry associations. They monitor and oversee the programs and function of different companies under their watch. They also mediate on consumer complaints like the Better Business Bureau or BBB. Look for consolidation companies that are members of these types of organizations and the better standing they have, the more it reflects on their professionalism.

Contributing to consolidation reviews

Consolidation reviews are often done to highlight the services of different consolidation companies in hopes of reaching out to student loan borrowers about to enter repayment and thinking about consolidating their student loans. But borrowers who are already in repayment and consolidated their college debt with the help of professional companies can pay it forward and help other debtors make the right choice.

  • Put in you honest assessment of the company. Other borrowers who are still undecided on who they will get to consolidate their student loans can benefit from your experience. It can be by leaving a comment on the company’s website or writing about your experience in a blog. It can also be by getting in touch with industry association especially if you have a complaint. This can help future borrowers get a feel of how the services are of the companies in student loan consolidation reviews.
  • Report any illegal activities to warn other borrowers. This should always be part of the deal. As you praise the people behind the company for a job well done, you should also be quick to point out the inconsistencies in the services. It could could include up front fees which Investopedia.com explains is a sign that borrowers need to be skeptical becuase payments are deducted from payments and not front loaded.
  • Share your experience with people close to you. This can include your friends in school or your younger relatives who are just about to enter college. The lessons you have learned in  taking out student loan while in school can be a valuable jump off point for the young ones who are just about to get a taste of student loans. It might also be just what your colleague is looking for as some of them could be struggling with college debt repayment.

Consolidation reviews are a great source of information. But appreciating the advantages of their services is understanding in parallel your needs as a borrower.


Young businesswoman looking sadLooking into consolidation reviews can help consumers and the industry in a lot of ways. The benefits it brings are usually the basis of some borrowers to go into loan consolidation. After looking into various benefits of loan consolidation, there are a good number of borrowers who prefers to enjoin the services of professionals to help them in loan consolidation.

A borrower can opt to go through a loan consolidation on their own and and for federal student loans, there is normally no cost to it. It is as easy as logging in to StudentLoans.gov and putting in your loan details to get started. For private student loans, the process is similar to when a borrower first took out a student loan. If it is this easy, why is there a need for a debt consolidation company?

Advantages of getting a debt consolidation company

Getting a debt consolidation company has advantages that a borrower might not realize at first. Yes, doing it on your own can save you some money but hiring a professional lowers down the margin of error. Imagine doing taxes on your own where missing out some important details could be costly. Or if you think detailing the engine of your car is as simple as a bucket with water and sponge then you are in for a big surprise and big costs.

But taking on the services of professionals ensures that you do not skip declaring some income or forgetting to deduct some exemptions. This brings your taxes to a more realistic amount. Driving off to a detailing shop will ensure that the proper liquids and solutions are used on your engine to get is as close to showroom detail as possible. Once in the shop, they can even check the car and look for possible repairs that you might need.

In all these, the obvious and top reason for getting a debt consolidation company to handle student loans is expertise. They have the skills and experience to make sure that you understand your options and that each of them takes into account your unique situation. They are able to lay all them out so you can make informed decisions.

Consolidation reviews helps a borrower in default

With the main benefit of student debt consolidation companies being expertise in the matter, how can consolidation reviews help a borrower in default? How can comparing the services of each company help get a borrower out and stay out of default? Well, consolidation reviews can do that and so much more.

Loan consolidation is one way out of default.

There are three ways of getting out of default. The first one is paying the full loan amount. This is because when the loan went into default, the full balance becomes due and payable. The second is loan rehabilitation. This is where the borrower and the lender agree on a voluntary amount and repayment time frame in order to bring the account to current. Of course the succeeding repayment amounts would be higher than the original due to some added fees coming out of default but the federal repayment plans and payment postponement options are again available to the borrower.

The third option is as ED.gov mentions, consolidating federal student loans is one way to get out of default. This can be done either through a loan rehabilitation before consolidation or going straight to student loan consolidation but only choosing between Pay As You Earn Repayment Plan, Income-Based Repayment Plan, or the third is  Income-Contingent Repayment Plan as payment options.

Customer feedback is an important barometer of company service

One way consolidation reviews help borrowers is the ability to gauge the services as against the actual experience of the customers. It is very impressive to list down a lot of products and features but the ability to dispense the same to clients and how effective it is will always be a good sign of a great company.

Take for example a co-signer release for private student loans. Consumerfinance.gov shares that there are quite a few private student loan borrowers who are having problems releasing co-signers from the account. At first glance, the feature is a great advantage to a borrower because the co-signer will be released from accountability after a few monthly and on-time payments. They would later on find out that there are a lot of requirements even before releasing the co-signer. The comments and opinions of these customers are very helpful in letting other borrowers know their challenges in the said loan feature.

Consolidation reviews explains fees and payment procedures

A borrower in default would most likely be in a financial struggle already. It could because of a medical emergency that is why they are behind payments. It could also be because the borrower was laid off work and there is no steady stream of income to meet the financial obligations including the student loan payments.

With that being said, how the debt consolidation companies will collect fees is important to a borrower. Consolidation reviews is already able to weed out scam companies who would demand high and unbelievable rates. These are the types where if a borrower falls prey, he would end up in a bigger hole than he already is.

Consolidation reviews can help a borrower look at how debt relief companies are charging rates Asking for an upfront payment should never be done and is not allowed by law. There are some who opts to charge borrowers a monthly recurring fee that acts like a retainer fee for the services of the company.

But there are those that prefers to get paid after the job is done. There are debt consolidation companies who prioritizes the situation of the borrower first before being paid. They explain the various repayment options available to the borrower, look at how each of them applies to the situation and helps the borrower reach a decision. After the borrower is happy and is enrolled in the program, that is the only time that they will talk about their fees.

Forcing the issue on the borrower

Student loan borrowers are already in a desperate mode and could be agreeing to the slightest hint of hope just to get out of their situation. Consolidation reviews also helps a borrower in default look at how the services are being offered to clients. It is important to look for a company that analyzes and tells a borrower if the program will work.

With this, there are debt consolidation companies that tells the borrower if they will be able to help them or not. They will never force their services and promise debt relief just to earn. Because of their experience, they know if a borrower will be able to take advantage of the repayment options or not.

Borrower default can use consolidation reviews

With all these benefits, a borrower can quickly look into consolidation reviews to help them choose the best debt consolidation company they can take on to fix their situation. It is possible to consolidate the student loans on their own but it is better to get the services of professionals. This allows for better decision making and less room for mistakes. Being in default, the last thing a borrower needs are more financial problems.


Consolidation reviews brings a lot of benefits to student loan borrowers especially for those coming in and looking to try consolidation for the first time. And the class of 2014 would be in the best position to take advantage of it. More than the fact that they are just getting started with repayment and the first time to consider loan consolidation, the batch also is also the most indebted in the history of the college graduates in the US.

As WSJ.com shares, the new batch of college degree holders is also holding an average of $33,000 in student loan debt. That is an amount that could have been used for other financial goals. A mortgage loan could be started with a downpayment for that amount. It could also equate to a nifty new car or for some, it can already open the door to opening a start-up business venture.

And the repayment outlook does not seem to be a an encouragement to borrowers about to start making payments on their college debt. Newamerica.net reports that for the first quarter of the fiscal year 2014, the total outstanding loan amount due to default is at $95.9 billion. And with about 6.8 million borrowers making up those that are in default, the average amount among them that has not been paid in nine months is at an average of $14,103 per borrower.

Having the biggest student loan debt amount and a not so nice picture of how default payments are, the class of 2014 should invest some resources in making sure that they understand their options on repayment plans and see how loan consolidation can help. There are a lot of debt consolidation companies out there and it is just a matter of finding out and separating legitimate ones from the predatory entities.

How consolidation reviews help 2014 graduates

Having a big student loan debt affect the borrower in a lot of ways not only financially. As Gallup.com survey shared recently, it is not only about the money when big student loans are involved. Looking at five aspects of a person’s well-being, those with high student loans are falling behind in four of the five points – purpose, financial, community, and physical.

As the class of 2014 tries to consolidate their student loans and peruse through several reviews,here are a few of the benefits that they can get from doing this.

  • Looking at benefits offered by consolidating student loans. One of the best things about consolidation reviews is that they are able to lay out the benefits of each debt consolidation company. This way, a borrower looking to consolidate student loans can look at the different benefits from various groups all at the same time. This saves the time and energy in trying to look and collate all the information from different sources.
  • Staying away from scam companies. With all the desperate student loan borrowers trying to find a quick way to get out of debt, there are some who fall victim to scam companies. One of the main reason for this is because they believe empty promises and hands out money in hopes of getting rid of student loans. Consolidation reviews present legitimate companies and weeds out predatory entities.
  • Preventing further debt. This is more of what a borrower can do in choosing the most appropriate debt consolidation company to help them with their student loans. Working with the company that suits your needs can help you stay on the path of repayment and prevent backsliding down to further debt.
  • Making informed decision. One great thing about consolidation reviews is the fact that most of the information that a borrower needs is already in one place to choose the best student debt consolidation company. Rather than trying to feel lucky in choosing a debt consolidation company, making the decisions based on accurate information can be advantageous for the borrower in the long run.

What to look for in loan consolidation companies

As the class of 2014 studies consolidation reviews, here are a few things they can look for in each company that is being reviewed.

  • Clean and simple website layout. With the advent of technology and the influx of information over the internet, there are a lot of theories on how best to present them to the consuming public. This is one of the challenges in looking for the information you need. Look for a website that can present the information you need in a clear way and not have to click through a lot of pages to locate them. With that being said,  a clean and easy to navigate site is important as it saves you time in looking of the information you need.
  • Industry articles. Student loan consolidation companies would need to have industry articles to help their clients get updated with the latest news and trends or breaking news. It is an added plus service and one that benefits the readers more than the company.
  • Repayment plans and company services. Consolidation reviews can also help a borrower by looking for the company that best describes each repayment plan especially for federal student loans. On top of that, debt consolidation companies should be able to match the specific situation of the borrower with a repayment plan after loan consolidation.
  • Professional support. Consolidation reviews can also help borrowers look for a company that provides professional support. One way to look at this is the industry affiliations of the companies. One specific association that can say a lot about a company is being a member of the Better Business Bureau. Another one is the International Association of Professional Debt Arbitrators that trains the people that will be handling the account.

How to make the most out of a consolidated loan

Choosing to consolidate student loans is a great way to make repayment easier. But there are some tips to make it work to a borrower’s advantage.

  • Do not consolidate loans when in despair. You will have a hard time making solid financial decisions when under duress. Being in panic can lead you to make hasty decisions that you might regret later on. Be sure to know all the variables and information before making a decision to consolidate student loans.
  • Student loan consolidation will not solve the problem. Even consolidation reviews can only do so much, consolidating student loans can help a borrower make the administrative part of repayment easier but it is still up to the borrower to make the payments. Although there will be one account to monitor, it still needs to be managed and that is up to the borrower and the not the program.
  • Do not skip a payment. It is hard enough to make the regular payments but skipping them will not only make the succeeding payments harder but the credit score will be affected as well.
  • Make extra payments. It is best to try and make an extra monthly payment as possible. It can help to act as a payment buffer for your monthly checks. If you are making two to three months ahead, that is 60 to 90 days of emergency payments.

Consolidation reviews can help a student loan borrowers choose the best loan consolidation company they can work with. Especially for the class of 2014 who, at the moment holds the distinction of having the highest student loan debt average.


Consolidation reviews offers great benefits to a lot student loan holders. Borrowers are able to get a good look at the different products and services of various student loan consolidation companies. As they are taking out student loans, about to enter repayment or is already in repayment, student loan consolidation reviews can greatly help them see the landscape better.

As more and more students are relying on the student loans to get through college and even graduate schools, the graduating class of 2014 holds the distinction of having the biggest average debt amount for student loans. WSJ.com shares that they are looking at about $33,000 in average student loan debt.

This is a big amount of payables that could have been used for other financial items. This could be more than enough to buy a car without taking out a loan. It saves the borrower from paying interest on top of the principal. It can also be a good amount for a down payment on a mortgage loan. This amount could also be used to either start a business or placed in some long term investments.

But as inflation is at a steady incline, cost of attendance will continue to increase as well. Unless billions of tax dollars are invested into the education of the future workforce, the need to take out bigger student loans will continue with each succeeding school year. It is quite a challenge and for many students, the only solution is to take out bigger student loans.

Benefits of consolidation reviews while in repayment

There are about 37 million Americans with at least one outstanding student loan account. And ASA.org reports how around 5.4 million of them are dealing with past due student loans.  This roughly translates to about $85 billion dollars of student loan debt in past due status. This shows that repayment is a challenge for a lot of borrowers.

Student loan consolidation helps a lot of borrowers deal with having to take on multiple student loans in repayment. But with all the consolidation companies out there, how can a borrower in repayment use consolidation reviews? Here are few advantages a borrower in repayment have when perusing consolidation reviews.

  • You know what type of help you need. Being in repayment, you have a unique advantage over those looking at consolidation reviews while still in school or just about to enter repayment. You already know how it is to make repayments and what you need to make it easier. You have gone through the challenges of student loan repayment so you can easily filter what you need in consolidation reviews.
  • You appreciate the savings regardless of the amount. Loan consolidation is able to lower down the monthly payment because of the longer repayment timeline. There are some borrowers who belittle the monthly savings given by loan consolidation. This is because the total interest payment is bigger with loan consolidation. But for borrowers already in repayment and struggling to free up some amount to make the budget work, the monthly savings is worth the interest payment at the end.
  • You can see through empty promises of scam companies. There are a quite a number of scam companies in the industry nowadays. This is brought about by the sheer number of student loan borrowers who are desperate to get out of their situation. They are taken advantaged of by scrupulous companies trying to make a quick buck. But borrowers in repayment are a little more wary and think decisions through. They know how hard it is to meet payments and one wrong move can bring them down into a spiral to debt.
  • You appreciate the advantages loan consolidation. Consolidation reviews usually puts out the services of the consolidation companies that can service the student loan accounts of borrowers. Someone in repayment can have a better understanding of the benefits of consolidating loans because they are going through some of the challenges that it aims to solve.

Loan consolidation while in repayment

As borrowers look over student loans consolidation reviews, undergoing loan consolidation actually has benefits for the borrower. Here are a few of things a borrower in repayment would be able to appreciate with loan consolidation.

  • Knowing the difficulty of balancing multiple payments. One of the main benefit of loan consolidation is combining all the student loans under one account. As a borrower in repayment balancing multiple student loans, it is firsthand knowledge of how difficult it is to balance multiple payments every month. With that being said, borrowers in repayment knows just how hard it is to balance all the student loan payments and can get to appreciate consolidation better.
  • Seeing firsthand how variable interest rates increase payment amount. Increasing interest rate means an increase in payment amount. This is something loan consolidation can address as it can fix in the rates. Being able to lock in the interest protects the borrower from erratic movements in payment.
  • Overlooking payment due dates leads to bigger payments the following month. One disadvantage of having to monitor numerous payments is the probability of overlooking payments on some accounts. Loan consolidation is able to prevent this from happening by combining all the student loan accounts drastically reducing the chances of forgetting a payment on student loans.
  • More time for the family. As you save time in managing your payables, you might be able to put extra time in spending time with your family or pursuing some income generating hobby. This is a one value of loan consolidation that not all borrowers know about.

Consolidation reviews offer alternatives

As borrowers in repayment study consolidation reviews, they are looking at options on different companies to work with when consolidating their student loans. There are private lenders offering private loan consolidation and federal student loan holders need only to look at Studentloans.gov. Consolidation reviews guide the borrowers in choosing the best company in terms if the following:

  • Look for the company that offers that best payment method. There will be fees involved when working with a loan consolidation company. But consolidation reviews are able to highlight the different payment methods of these companies. Borrowers can then make informed decisions when choosing a company.
  • You can check what other clients are saying about the company. It is also important to see what other clients are saying about the services they received. They are the closest thing to truthful advertising that potential clients can look at. A lot of people are gracious with praises for receiving great service and they are not afraid as well to lash out on bad service.
  • Peace of mind with industry affiliations. There are industry affiliations that monitor, guard and even promote consumer rights when it comes to financial services. Consolidation reviews are able to summarize these affiliations for the borrower to quickly reliability and oftentimes, legitimacy of operations.

Consolidation reviews are able to present different loan consolidation companies for borrowers to choose from. These services and benefits takes on a different meaning for borrowers who are already in repayment. They are able to qualitatively measure the possible effects of loan consolidation on their existing payment scenario. They are able to weigh the benefits and how it can affect their dreams of making repayment as easy as possible.


Looking at a student loan consolidation review helps the borrower manage expectations when dealing with loan consolidation companies. Repayment is a hard place to be in especially with multiple student loans. One college course would have to be taken in about two to four years and each year carries specific costs. And as ASA.org pointed out, roughly 12 million out of the average 20 million college students every year relies on student loans to cover cost of attendance.

At present, there are 37 million Americans with an outstanding debt amount with their student loans. And as Projectonstudentdebt.org shares that $29,400 is the average student loan debt amount carried by 2012 graduates which is a 25% increase four years prior, the number of college debt holders are not only increasing but they are carrying bigger loan amounts.

Reason for cost increase

Some would argue that this is a normal trend because of inflation – the more expensive the service, the bigger the loan needed to pay for it. Some critics would even point out that as the government is pouring in the funds to help the students cope with the student loan problem, the colleges and universities are simultaneously increasing the cost of attendance. But some educators would be quick to point back to inflation as they need to increase their fees as prices for commodities and goods increase as well.

This scenario paints a very challenging repayment stage for any student who has to take out student loans to get through college and realize their dreams of higher education. A good number of them still believes that a college education is their ticket to middle-class and a springboard for better days but they still have to get through the repayment stage.

As loan consolidation is becoming more and more popular, there are some student loan borrowers who are opting to get the help of professionals to lay out their plan consolidation plans for their college debt. Most of these borrowers would already know the benefits of consolidating their student loans but are clueless on how a loan consolidation company should provide services. This is where student loan consolidation review sites comes in to help.

Borrowers in repayment difficulty

From the total number of Americans with outstanding student loan debt, about 14% of them are having problems with at least on past due college debt account. This is around 5.4 million borrowers in repayment struggling to get all their student loan accounts current in payment. They could be looking at fines and interest charges added on the payment amount especially for private student loans.

Fastweb.com shares that more than 10% of borrowers already defaulted on a student loan from 2008 to 2011. From being delinquent to past due to default status, repayment is a struggle and loan consolidation is taking center stage in helping them get a good grip of their payment management.

Practices to look for in a consolidation review

As borrowers troop to consolidation reviews and compare companies offering what is masked as similar services, there are practices that could be your benchmark in separating the better companies for the rest. Here are some of the practices to look for to know you are dealing with a legitimate company that puts your interests first.

  • No upfront fees. This should be one of the first things you should be looking for in a consolidation review. In fact, a loan consolidation company should not be front loading any fees on the borrower especially right before any actual work has started. This is also a ploy by scam companies to squeeze money from unsuspecting borrowers. This is usually how they are able to get the money even before any actual work and disappear. They then set up shop in a different state with a different name but with the same scam.
  • Approval on the program. A consolidation review can even show how some companies are holding off payments until the borrower has approved of the student loan consolidation program prepared for the account. This is a good practice of loan consolidation companies that shows they value their clients understanding of the program. A client would not approve something they do not fully understand and educating the client is a big part of the process. A client needs to understand the process and program before they sign on the dotted line.
  • Monthly fees. Student loan repayment will be a monthly responsibility and if the loan consolidation company will be adding monthly fees on top of the monthly payments to the lenders, this might defeat the purpose of enjoying a lower monthly payment from loan consolidation. A consolidation review can quickly let a borrower know the companies that are not charging any monthly fees.
  • Money back guarantee.This is not a requirement like not having upfront fees. But consolidation companies that are practicing this guarantee shows how confident they are with the services they are offering to their clients. Not a lot of companies are able to do this for fear of losing out on potential income. But there are a few that gives a guarantee until a client is fully satisfied with the program.

Best way to start a relationship with a consolidation company in the industry

As you look over consolidation reviews, there is one thing that you need to keep an eye out for, how the companies offering the services would start talking to you. You might want to look out for the following.

  • No-obligation consultation. It is impossible to put together a loan consolidation program without first knowing the details and the student loan history of a borrower. How many federal loans and private loans? Which one has the highest interest rate? Which one has the highest amount? It also needs to consider the financial capacity of the borrower. Is there a steady source of income? Are there additional funds that can be expected every month? All these has to be considered before laying out a plan. There are companies offering this at no cost to the client.
  • Not forcing the the service. If the client is not a good fit for any program that the company offers, they should not force the issue and insist that it will work for the borrower. Not a lot of companies would say no to clients but there are those that does not force borrowers to take their services. If they feel that there is another repayment plan that would work best for the borrower that they are not offering, they would let the borrower know about it.

A consolidation review can greatly help a borrower weed out different consolidation companies and compare their services from one another. They would need due diligence in choosing a consolidation company that they would work with for the next few years of their student loan repayment. It would also help them choose those groups that has the best services possible.

But of course, a consolidation review will not tell the whole story. It can give you a bird’s eye view of the services and programs that is offered but it is still recommended to talk to them and see for yourself how they would receive you and put together a plan for your consolidation needs. Student loan repayment is already a hard stage in your financial life and being stuck with a sub-par consolidation company will not make it any better.


Student loan consolidation reviews are slowly finding its way into the need category of student loan borrowers. As more and more college debt holders are entering repayment, they are looking for the best way to make their payments as easy as possible. Especially so that majority of them would be taking our multiple student loans across the whole college experience.

As they look for programs that can help them in repayment, there will be a good number of borrowers who would consider consolidating their student loans to streamline their payment details and make the whole process as simple as possible  - administratively speaking. Although loan consolidation will not give you the money to pay for the loan, and there is no repayment option that will, it will at least make the payment amount smaller on a monthly basis.

This is a welcome advantage of loan consolidation as Projectonstudentdebt.org shares that 2012 graduates are entering the real world with an average debt of about $29,400. That is already a few thousand short of the annual starting income for a new hire. And there are a lot of graduates leaving school in debt. Public colleges are turning out 66% student debtors, 75% for private nonprofit colleges and a whopping 88% with for-profit colleges.

These are thousands of graduates looking for jobs with a heavy burden on their shoulders. And as they look into loan consolidation as a viable plan to help them make their payments easier, there are a lot of borrowers reading and studying loan consolidation reviews of different companies that are claiming the same thing – they can help the student loan borrower out of their college loan problem.

This is a great promise but as there are more and more students getting in debt, there is also an increasing number of debtors who are desperate to get out of repayment. These are the types of people who are falling victim with scam companies. One way to stay away from these types of companies is to use loan consolidation reviews to manage payment expectations.

What fees and expenses to look out for in loan consolidation reviews 

There are about 20 million Americans enrolled in college at any given year. And from this number, about 12 million are having to rely on student loan borrowing to pay for college as shared by ASA.org. This is a big percentage of undergraduates not having enough funds to pay for college and would have to deal with repayments after college.

As student loan consolidation is a great way to get a handle on the repayment stage, here are some things to look into to be able to estimate some payments with consolidation companies. These details can be found in loan consolidation reviews.

  • Upfront payments. There is one simple rule with upfront fees – it is now allowed by law.Loan consolidation reviews could give you a quick look at the companies and how they are abiding with this regulation. This is where scam companies make the most money because as soon as the borrower makes a payment, they split and take on a new identity to victimize other people.
  • Service fee. Consolidation companies are providing a professional service where they will assess a payment commensurate to the service. This is acceptable but one way to look into this is to look for those companies that are not front loading their fees. Loan consolidation reviews can help you look for groups that are assessing fees after the fact. Once they are able to help you, that is the only time they charge their fees.
  • Management fee. Management fees could be another term for service fee but there are those companies that are charging management fees on a monthly basis. Again, this is really up to the company and how the would be client feels about a monthly recurring fee. Just be careful because you might end paying more than what you can actually save.
  • How are the companies being paid. Loan consolidation reviews usually lets readers know how the different companies are getting their fees. It could be a straight computation or based on the amount that was enrolled in the program.

Knowing these fees and payments by perusing student loan consolidation reviews can help a borrower manage expectations on future payment. If all the fees are added up together with the payment, it should not be more than what would have been saved up with loan consolidation. If you end up paying more, then you need to look for other companies in loan consolidation reviews.

Understand how loan consolidation will change your payments

As Fastweb.com shared that there is over $1 trillion in student loan debt as of March 2012,  this has seen a staedy increase over the past few years. And as the amount keeps on increasing, so does the number of borrowers looking for a break with their payments. As loan consolidation is becoming a popular choice, here are two of the most basic changes a loan consolidation will do to your student loan account.

  • Smaller monthly payments. Student loan consolidation reviews could highlight this payment feature that can be offered by various consolidation companies. This is more about the program than the company because loan consolidation stretches the repayment period. This allows the monthly payments to be smaller compared to either previous payments or what would have been payments.
  • Bigger interest payment at the end of the loan. This is one of the downsides of consolidating loans – you end up paying more for interest over the course of the repayment period. As the monthly payments are smaller, add them up over time and it comes out bigger compared to if you did not consolidate the loans.

This is a trade off and one that a lot of fresh graduates are taking because of the lower monthly payment. For most, it is more beneficial to have a lower monthly payment rather than running on a shoestring budget because of stretching the income over the expenses. There are some who feels that they can make up for it by either prepaying as their income changes or paying off earlier than the repayment schedule.

Making the consolidation reviews work to your advantage

As you look through loan consolidation reviews, here are some of the things that you can check out aside from the service fees.

  • Look for things that will work for you. There are some extra benefits that other loan consolidation companies can give that others cannot. But be sure that these things work for you. It is only a benefit if you can use it.
  • Identify the things that will not work for you. As you look the services that will work for you, look into other items that you do not feel comfortable with. Remember that you will be working with this loan consolidation company for a good number of years.
  • Look at how previous customers are treated. Read through customer reviews and see how the clients are being treated. If you see that the company is putting a lot of effort in making sure that their customers are happy, then they are worth looking into. But do know that for a fact, there are customers that are really hard to work with. Look for objective criticisms.

Student loan consolidation reviews can help a borrower look into how different companies are charging fees. This can go a long way in helping the borrower manage the funds especially that fresh graduates are having to make do with limited resources.


Student loan consolidation reviews benefits not only the college loan borrowers and their families. It can also increase the level of acceptance and trust people have on the overall industry. As more and more borrowers find themselves in a tight student loan payment spot, there will be an increasing number of them who will look to experts to help them make sense of their predicament.

Asa.org mentioned that there are about 37 million student loan debtors across the country. This is the number of students and their parents who turned to the government and private lenders to finance their education. As with all types of loan, they are now repaying the funds they borrowed for higher education. From these borrowers, about 5.4 million are having problems with payments that has lead them to at least one student loan account that is past due.

One of the problems student loan borrowers has to face is having to juggle multiple student loan accounts. All of which can differ from amount, interest rate and loan servicer. It can also be a mix of federal student loans and private student loans. After filling out a Free Application for Federal Student Aid or FAFSA, the US Department of Education and the school will assess the financial need of the student and grant the applicable financial aid package.

Sadly though, there are some students who did not even fill out the FAFSA before going into college. And there are some who fill them out but either do not take the financial package or takes less than what they need. All of which leads them to private student loans. TICAS.org shared that around 47% of private student loan borrowers took less in Stafford loans which could have prevented or lessened private loans. Even student loan consolidation reviews cannot help them in making them see the benefit of federal over private loans.

From the same report, it is quite intriguing to know that the bulk of private student loans are coming from public four-year colleges. A total of 31% of undergraduates from public four-year colleges are taking out student loans to finance their education. This is a big question on why student are deferring to borrow private instead of federal when their cost of attendance is considerably lower than other colleges. And most of the students with financial need are in public colleges.

The industry needs student loan consolidation reviews

Projectonstudentdebt.org shared that 20% of student loans that the class of 2012 had were all private student loans. On one end, this is a good sign that there are still a lot of students who are making use of federal student loans. But as private student loans are filling in the economic gaps, they are also serving a great purpose in the US educational system. Student borrowing private and federal leads to an even more complex set of student loan accounts that has to be monitored.

Student loan borrowers are juggling several federal student loans with different amounts, interest rates and service lenders together with a couple of private student loans that has different principal amounts, higher interest rates, and tighter repayment timeframes.This leads a lot of student borrowers to look for expert companies that can help them in their ordeal.

This situation has lead to multiple debt consolidation companies to put together services that can help students. But there are shady organizations out to victimize unsuspecting students. It has even lead to Illinois being the first state to sue fraudulent debt settlement companies preying on confused college loan borrowers as reported by Time.com. This is where student loan consolidation reviews come in.

There are a few advantages that student loan consolidation reviews bring to the whole industry of student loan consolidation.

  • Acknowledges the legitimate companies. Student loan consolidation reviews are able to weed out the fraudulent companies form the legal entities by reviewing only the legitimate debt consolidation companies. It helps consumers to be familiar with the key and top service providers in the industry.
  • Lays out the standard of service to be expected by customers. Student loan consolidation reviews puts out in the open how legitimate companies provide service to their customers. This includes the services they are offering and the way they conduct their customer service. It also shows how they do not frontload fees and actually gets paid only if they are able to perform the services they promised
  • Educates the student borrowers and their family. Another crucial role that student loan consolidation reviews bring to the industry is the fact that they are able to educate the consumers especially those who need them the most. Shady companies are on the prowl looking for the desperate student loan borrowers looking for a way out. They then take advantage of the borrower’s situation for their own benefit. Student loan consolidation reviews shows the importance of looking at company background, industry affiliations and even customer feedback.

Student loan consolidation reviews helping other companies

As the online reviews promote the positive and the good side of the industry, it is also helping fellow players who are offering the same services to student loan borrowers. It is not only the college loan holders who are investing time to look for the best debt consolidation company for their student loans, even other companies are looking at the competition.

The reviews are helping other companies in a lot of ways.Some of them are:

  • Benchmarking quality. As other debt consolidation companies peruse student loan consolidation reviews, they are able to measure up their own portfolio of quality and discern where they need improvement. They can look at how the top industry players are faring and find a way to improve their own quality of work.
  • Improves services. As other companies look at student loan consolidation reviews. they get to encounter numerous types of services that they can use to improve their own roster of offerings. It is not meant to copy and offer the same thing. But a healthy industry competition will keep everyone on their toes and force the players to come up with new services for the consumers.
  • Competitive rates. As student loan consolidation reviews also publish how the top companies are getting paid, they can use this to review their own pricing and make sure that they are within the same range. This keeps the industry on almost the same level of playing field and would have to provide an increasing array of programs and services.
  • Consumer sentiment. This has almost the same effect as improved services but more than that, student loan consolidation reviews allow other companies to read customer reviews and feedbacks. It shows them what the customers are looking for and how they feel towards certain company policies such as fees, turnaround time and others.

There are a lot of benefits student loan consolidation reviews bring to the its stakeholders. The consumer themselves who are looking for a debt consolidation company who they can trust. Other companies also benefit from the consolidation reviews by making sure they are at par with the best. And the whole industry gets a boost from student loan consolidation reviews as it highlights not only the success stories of some borrowers but how debt consolidation should be able to help the debtors.


Student loan consolidation reviews has been very valuable for student loan borrowers who are thinking about consolidating their college loans. Consolidating multiple student loans makes a lot of sense since it will boil down all the student loans into one single payment and interest rate. Not to mention having to worry about one payment due date and monitoring only one payment term for the student loans. Student loan consolidation indeed has its rewards.

This is most especially helpful with the graduating college seniors who are riddled with student loan debts. According to Projectonstudentdebt.org, 2012 college graduates saw the highest average student loan debt at $29,400. This boils down to average student loan borrowings of $25,550  for public colleges, $32,300 for private nonprofit colleges, and $39,950 average debt for a private for-profit college. These have increased fro figures from the previous years.

They are now part of the almost 37 million Americans who are making payments on student loan debt. Amounting to over one trillion dollars, the student debt amount has already bypassed credit card debt and auto loans in terms of amount. It now stands next to mortgage loans and has etched its name as a big economic mover and shaker. But of this number, ASA.org shares that around 5.4 million or 14% of the total number of borrowers has a past due account.

Student loan consolidation reviews has never been more important because more and more borrowers are looking to consolidate their loan. The need to consolidate student loans might have increased because it is a potent way of preventing delinquency and default. In the student loan debt industry, the average borrower who turns delinquent in student loan payment is twice as many compared to those who default. But if there are unable to get back to current status, delinquency can turn into default in a matter of months.

Tips in decoding student loan consolidation reviews

As most of the borrowers are struggling to make their student loan payments on multiple accounts, they are finding it too difficult to keep track of all the details. If there were seven student loans where five are federal and the remaining two are private, that is already a lot of payment coordination. The borrower can end up talking to five federal loan servicers and two bank representatives for their private student loans. Plus the fact that there could be different rates and payment amount as well as payment due dates that has to be closely monitored.

Student loan consolidation solves these problems for the borrower. But as they go about and start preparing for a student loan consolidation, there are student loan consolidation reviews that they can rely on to check and assess different companies offering their services to consolidate the student loans. There are just a few points for the borrower when looking at consolidation reviews. There are tell tale signs that the company might not be doing you a service but will just be out there to pull up a quick one on you.

Here are four things to look for when looking over student loan consolidation reviews.

Upfront fees

Aside from the fact that it is now illegal to collect upfront fees from borrowers looking to consolidate their student loans, it puts the client at a disadvantage. And legitimate companies know that it is very important that the customer feels comfortable and is aware of process and procedure before taking out a loan. It does not help that loan consolidation companies collect upfront fees because they can run at anytime with the borrower’s money.

Legitimate and trustworthy companies should never ask for upfront fees. In fact, some of the best consolidation companies will only bill you if you are either successfully enrolled in the program or after the payments are done. This is a situation that puts the interest of the borrower above everything else. The company has to work really hard first and fulfill their promises before they are able to collect their fees. Student loan consolidation reviews should be able to pinpoint this item in one glance.

Assured lowest interest rate

There are a lof of benefits in consolidating student loans. The most obvious of which is the fact that payments will just boil down to one check every month. The interest rate is also re-computed based on the average rate for federal loans.Private loan consolidation is credit score based. The higher your score, the lower your monthly payment will be. If a company in the student loan consolidation reviews claim that they can provide an interest rate that is lower than your existing rate, be sure to know how they plan on doing this.

Low monthly payments in a short payment term

The monthly payments in student loan consolidation will be lower than all your existing loans combined because the repayment term is extended. You might be saving a few bucks every month but you will be paying a bit more in the end because of the length of the payment term. When student loan consolidation reviews show that a company is offering low monthly payment for few short months, then be very wary. They might be asking you to make balloon payments at the start of the year.

Debt settlement in student loan

Student loans is quite hard to discharge in a bankruptcy court.Much more debt settlement. This can be done in other types of financial instruments such as a credit card but would be next to impossible with student loans. The US Department of Education, who is technically the lender for federal student  loans, might not agree to this arrangement. The private banks where you took out your private student loans might feel the same way.

Be very cautious of student loan consolidation reviews offering debt settlement for student loans. In the process of a debt settlement, the borrower is asked to stop making payments on the loan and save the money for settlement. If you completely stop making payments on your student loans, this will have an adverse effect on your credit score and the government can garnish your salary to be applied as payments. You will also lose any tax refund coming your way because that will be seized to be used as your payment.

Mechanics of student loan consolidation reviews

As more and more students are finding themselves having to take out student loans every year, the challenge of managing them will proportionately increase with the amount and the number of student loans they have. The more student loan types, the harder it is to juggle them all at the same time.This will be on top of making payments on rent, utilities, food and other living expenses. If there are other credit payments like auto loans and credit cards, those will add stress on the budget.

This is why consolidating student loans are becoming popular by the minute. Borrowers are understanding the benefits it brings and they are seeing how it can help them manage their finances better. Student loan consolidation reviews is a tool used by college debt holders in looking for the best company to help them consolidate their loans.

Student loan consolidation reviews are supposed to benchmark the services and performances of several companies to give borrowers the chance to make informed decisions. Though there are a number of people advising against taking on the services of a consolidation company, the expertise in the field of finance makes them a great choice. As deep as you are already in debt, you would want to entrust your future payments with a company that knows exactly what you need to live a debt free life.


Student loan consolidation reviews have increasingly helped college debt holders in looking for a company that will fit their need. As student loan consolidation has been an increasingly popular and effective program in addressing student loans, knowing who to work with is paramount before diving head first into negotiations and a deal.

The rise of student loan consolidation companies is the after effect of the increase in student loan debt and the borrowers seeking a way out. A good number of borrowers are in agreement that taking out a student loan is an investment for the future. It is one way to pay for cost of attendance and get that degree for higher education. It is a big advantage and a great push to land in the middle class of the economy.

But as these student loan borrowers find out later on, repayment is not a piece of cake. It was so easy to believe that repayment will not be that big of a deal since they will have a steady source of income after leaving college. This is a great theory but seldom becomes a reality. Yes there are those that are able to get great paying jobs and are not at all that bothered even with a straight payment program for student loans.

But majority of college graduates are either having a tough time landing a job or getting jobs with salaries that will prove to be challenging when expenses come into play. Both of these scenarios are much too common with college graduates that repayment is slowly becoming a phase that they dread. Even with a grace period for federal student loans, this period will seem to come by too quickly for student loan borrowers.

Newyorkfed.org is saying that repayment is a tough situation to be in for college debt holders that borrowers who are delinquent for over three months in 2012 is at 17%. This is in relation to about 37 million student loan debtors in the country. And those that are current has a 9% chance of turning to delinquent borrowers and soon, defaulting on the loan.

There are also over 5 million borrowers who are carrying past due student loan accounts according to ASA.org. And the percentage of student loan borrowers who are in repayment between 2004 until about 2009 that were able to make payments on or before the due date was only at 37%. This is a very low percentage of college loan borrowers who are able to make monthly payments. This is where student loan consolidation reviews come in to help.

Student loan consolidation reviews benefit parents

Student loan consolidation reviews makes the most sense when the borrower is seriously considering consolidating their student loans. But the details about different loan consolidation companies will only work best and to the advantage of the borrower if they understand the basic concept of loan consolidation. Also, not only the college graduate will be able to access these information but even parents themselves.

Here are a few advantages of a student loan consolidation reviews to a parent of guardian.

For their children in college

Parents will always be parents meaning they will always look out after their children even those that are already in college. Of course there are a few rule changes when the child becomes a college graduate but the basic idea is still the same – parents will look for ways to make life a little bit easier for their children.

Parents can look into student loan consolidation reviews and help their college children out with student  loan details. They can look at the credibility of the various companies and make a suggestions based on their understanding on the strengths and weaknesses of each

For their children in high school

A lot of high school seniors are already looking and planning for the best colleges in town. Even before they start taking out student loans to finance their education, parents can already start looking through the long list of student loan consolidation companies. Parents can look for a good fit as early as now and talk to their children about it.

For their own student loan debt

Parents were college students once and the possibility of going through student loans is pretty high. There are even some who are still making payments on their student loans while their own children are just a few more years short of college themselves.  At this point, the student loan consolidations reviews will immensely help the parents themselves deal with their own student loan payments.

Tips in understanding student loan consolidation reviews

Reading through the reviews of companies performing student loan consolidation service might seem to be an easy job. But here are a few tips in making sure you get the most out of your research.

  • Know what you need. This is important in making sure that the data that you get are the ones that you need. First, you have to be sure that consolidation is your preferred program in repaying your student loans. You have to understand all the advantages and disadvantages of consolidating student loans to be able to appreciate the comparative review of one company to another. Putting yourself in the shoe of the borrower will help you weed out the important information that you need to know.
  • Be wary of negative comments. There are student loan consolidation reviews that are peppered by industry reviews and sometimes, complaints. In life, no one is perfect and same goes for the consolidation companies. There might be instances that the program is challenging that when the company fails to help them, they throw a fit and rant online about their experience. The important thing is that the borrower will always seek a resolution to the complaint in a courteous manner. .
  • Understand the language. You do not need to be a seasoned expert to understand how the student loan consolidation reviews are laid out. But it would help to know the meaning of different keywords that can help you understand the review better. Such as the difference between a subsidized and unsubsidized student loan.There could also be topics about federal and private student loans. There are also accrual and interest capitalization that might be taken up in the review. Be sure to brush up on the vocabulary to make the review much easier to comprehend and appreciate.
  • Call the company. Do not be satisfied with just how the companies are described by text. It is a great idea to give them a call, or at least the ones that you shortlisted,  and discuss their strengths and weaknesses as you might have understood from the review. Use the student loan consolidation reviews as a jump-off point in talking to the right student loan consolidation company.

Student loan consolidation reviews are integral in the plans of a borrower to streamline payments and make it easier to repay. Even parents can help in looking at the reviews for their children or even for their own use. The important thing is to have an idea what the company is all about, the services they can render and how they have helped other borrowers in the past.