There is a lot of hype about student loans these days. After all, there is currently over 1.1 trillion dollars of student loan debt in America. As a result, there have been plenty of advertisements and promotions about consolidating your Federal student loan debts. Today, we’ll explore how FaithWorks can support you in exploring Christian student loan consolidation!

Debt consolidation is the act of taking multiple loans from varying financial institutions and combining them into one single loan. FaithWorks helps people find debt consolidation loans to consolidate high-interest unsecured debt like credit cards and personal loans. The same concept works for student loans, too.

The debt consolidation process issues a new loan with a single, fixed interest rate. Ideally, consolidating debt should give you a lower monthly payment, lower interest rates, and simplicity in the form of one single monthly payment. When done right, it can do wonders for your cashflow and your budget.

For students at colleges and universities all around the country, a federal student loan consolidation can be a great way to relieve some of the burden that comes with paying for higher education. However, there are a few very important factors that you should consider to help make sure that debt consolidation is right for you in the first place.

Your Current Monthly Payment

For starters, take a look at your current student loans and see if your current monthly payments are actually manageable. Most students don’t have to begin repaying their loans until they have either dropped below full-time status or have graduated from their university. If you have fair interest rates and you are not having a difficult time keeping up with your loan payments each month, you may not have much to gain from a consolidation in the first place.

The Number of Loans You Have

One of the main benefits of loan consolidation is that multiple bills suddenly become a single bill due on the same date each month. However, if you only have one or two loans or are having no problems keeping track of your current commitments, student loan consolidation may have a lot to offer you. The bigger benefit is experienced by people who have four or more high-interest student loans that they are making payments on each month.

Current Interest Rates

Another factor that you’re going to want to consider is the interest rate that is attached to each of your current loans. People with high or variable interest rates stand to benefit the most from a federal loan consolidation. If you have reasonable fixed interest rates on one or more of your loans, you may actually lock yourself into a higher rate if you end up consolidating. If you find that your interest rates average over six or 7%, a consolidation may be worth taking a look at.

The Long Haul

You will have to consider the general basis of a consolidation- restructuring your term. If you only have a few payments left it may not make any sense for you to consolidate. If you have quite a long repayment ahead of you though, and would benefit from that lower interest rate and monthly payment, you may want to explore the consolidation or other student loan resources.

Christian Student Loan Consolidation

You may have already asked yourself by now, “What’s the difference between a Christian student loan consolidation and a regular student loan consolidation?”. The simple difference is that you will be working with somebody with like-minded values who will go the extra mile to help you solve your debt situation and present you with honest information. In fact, anyone can consolidate their federal student loans on their own directly through the Department of Education. FaithWorks is here to help you decide if student loan consolidation is right for you.

A student loan consolidation can often prove very effective in simplifying your finances and help you get on sound financial footing. If you would like more information please complete the form on the right hand side to request a call from a FaithWorks Financial Christian Debt Advisor today!