Students now have something else to bemoan besides cruel teachers, impossible assignments, and the pitiful amount of their school allowances. Since July 1, 2006, the rate for federal student loans had been officially increased making it the highest rate over the next 6 years.

If repaying your student loans is challenging your budget, or worse, putting your finances – and credit rating – in the red, you might want to think about a direct student loan consolidation.  

Unlike other loan reduction methods, debt consolidation for student loans is easily accessible anytime, anywhere, and for anyone 

With a direct student loan consolidation, you exchange your outstanding student loans with their higher interest rates for one loan with a more manageable, fixed interest rate.  

A direct student loan consolidation may be the answer to more than one problem. If you have struggled to meet your monthly payments and in fact have used every option for deferment or forbearance your current loans offer, or find yourself about to default on your loan, a direct student loan consolidation can mean a fresh start.   

Not only do deferment and forbearance options become available in case of need again, but often direct student loan consolidation gives you a much lower interest rate – as much as 0.6 percentage points – thereby lowering your monthly payments. And when you consolidate those student loans under a new loan, those loans show up on your credit report as paid off, and your credit score benefits.  

While direct student loan consolidation may be the best way to get on top of student loans for some, if you are close to paying off your existing loans, it may not be worth it in the long run to consolidate or extend your payments.  

If you want to consolidate your student loan, do so now. Don’t wait for interest rates to rise even further.