Can consolidation be the solution for your student loans?

In today's economy, finding a job can be difficult, and entry-level positions don't pay as well as in the glory days of the dot-com world. Adding high monthly student loan payments to the equation is even more burdensome.

What many people don't know is that it is possible to consolidate or "refinance" student loans, much like refinancing a mortgage. While not for everyone (e.g., those with already low-rate Perkins loans), a student loan consolidation from Collegiate Funding Services (CFS) is something to consider.

The interest rates on federally guaranteed student loans dropped more than two percent last July. By consolidating your student loans now, you might be able to benefit from these lower rates, and lock in a "cheap" fixed rate for the life of the loan. Avoiding the risk of future higher interest rates can literally save you thousands of dollars, depending on your loan balances.

A student loan consolidation can also lighten your burden by lowering the amount of your monthly payment. Although this can extend the term of the loan, you can always pay extra (like a mortgage) or prepay it completely without any penalty. You can even change your repayment plan to suit your present income level.

Plus, on January 1, 2002, the IRS expanded eligible tax deductions on student loans, which can benefit long-term borrowers. You'll have to check with your tax advisor to determine how much you might be able to save.

CFS has made it easy to find out if consolidation is the right solution for you. Under CFS's program, you can reduce your low fixed interest rate by up to an additional 1.25 percent: an immediate quarter percent for having your payments electronically withdrawn and an additional one percent after you make a series of consecutive, on- time monthly payments.

When you combine the lowest student loan rates in history, a lower monthly payment, no prepayment penalties, and new tax advantages, there has never been a better time to consolidate.

To see if consolidation is right for you and to take advantage of CFS's program, visit Collegiate Funding Services at or call them toll-free at 1-866-316-0673.

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