Student loan consolidation can be the best bet in managing education loans.

The important question that comes to the mind when one thinks about the loan consolidation, is who can apply for these loans, or who all are eligible for these student loan consolidation programs. Usually the student loans are taken by the students themselves or their parents. Hence, these are the only two parties who can get the loan consolidated, but the consolidation happens for each individual separately. This essentially means that the student and the parent cannot consolidate their loans together under a single account. In case the students are married, then the partners have to consolidate their student loans separately, the husband and wife cannot combine their total amounts into one single account.

The individual loans can be considered for student loan consolidation program, after the loan repayment has started and during the time of the grace period. In case the student has defaulted on the repayments of the original loan, only after the bank is convinced of the repayment arrangements, can the student can apply for a loan consolidation program. The student loan consolidation program is very similar to a mortgage loan refinancing. The other aspect of the loan consolidation, that is very favorable, is the fact that the interest rate remains constant throughout the term of the repayment. The student loan consolidation program allows the student or parent, lower interests and longer terms. However, the special incentives of the original student loans like post graduation grace period and special waiver options are done away with.