Loan consolidation is when you get one loan to cover all your other loans to pay them off at once. This then gives you ONE loan, ONE interest rate and ONE term to worry about. Because of this, you have a bigger loan and therefore can usually negotiate better terms and interest rates than having a few piddly loans.The fine print will not be much different between offers, BUT I would do it through a bank if anything. Stay away from those private lending houses that are damn near loan sharks that thrive on the lower-middle class and students/recent graduates.
The biggest advice I would make: arrange it such that you have manageable payments in which repayment will not affect your SOL too much without dragging it on so far that you always have assumed debt popping up on your credit report. The way it is set up here, you can repay your student loans for MANY years (some people do it over 15 years for as little as your $15k) but why? I always pay a little more than my monthly payments since the amount over the minimum payment goes directly against the principle, thus lowering your principle faster. Ultimately, depending how much you pay over, it CAN affect your minimum payments since those are based primarily on your interest incurred every month. Lower your principle, lower your interest lower your payments.
All in all, consolidation will look GOOD on your credit report when you get all those other loans paid off. The credit bureau does not get told HOW those loans got paid, only that they got paid.
That will help you get a house and a shiny car faster 
[ 06-10-2005: Message edited by: Obsidian ]
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posted 06-09-2005 11:48 PM
