Fixed Rate Loan Consolidation for Lowering Your Student Debt

A fixed rate loan consolidation can help you as a borrower lower your student debt. This is accomplished by combining your outstanding student loans into 1 fixed rate in order to lower your monthly costs. Consolidation may help you avoid defaulting on your student loans. A loan default adversely affects your credit rating and can also have an impact on your future employment opportunities.

There are several steps that you can pursue when consolidating your student loans into 1 fixed rate student loan. Following these steps will help you accomplish consolidation and potentially lower your costs, which will translate into savings for you.

Step 1: Gather Your Loan Information

The first step when seeking a consolidation of your student loan debt is to locate and gather all the documentation related to your outstanding student loans. This documentation should show information concerning the loans terms, interest rate and amount borrowed. This information will help ease the process for the lender that you approach for a consolidation loan.

Step 2: Contact a Lender

With the information that you gathered regarding your outstanding student loans, contact various lenders that offer consolidation services for your loans. For federal student loans, this can be accomplished through the Student Loan Marketing Association or Sallie Mae. Private loans are consolidated through a network of banks and other lenders who specialize in student loans.

You should contact at least 3 lenders in order to compare their rates and determine the amount of cost savings that you will derive from consolidating your loans. This comparison should help you decide on the best provider based on your due diligence.

Step 3: Sign the Loan Consolidation Agreement

Apply for the consolidation loan with the selected lender and sign the resulting loan consolidation agreement. Before signing the agreement, double check the terms and rate to ensure that the numbers that you agreed upon during the application process are still applicable to the final agreement. If not, ask the lender for clarification and a correction of the loan agreement to reflect your mutual understandings.


Consolidating your private and/or federal student loans requires some work on your part in order to find a participating lender that has the right terms and rates for you. Once you locate the lender, negotiate the terms for the consolidation loan, complete the loan application and sign the loan agreement that meets your needs. This will help lower your monthly costs and put more money back in your pocket.

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