Why Student Loan Consolidation Is Important
By now, you know that student loan consolidation saves you more money each month by reducing your monthly payment. However, did you know that consolidating saves you additional money by beating inflation and by helping you service other debt?
Inflation
Here's how it works. Inflation is essentially the de-valuing of money. Consider these simple facts:
- A car you bought in 1998 for $20,000 would cost you approximately $27,654 in 2011.
- A college tuition you paid $20,370 for in 2011 would have only cost $16,000 ten years ago.
The lesson is clear: a dollar in your pocket today is worth more than a dollar in your pocket tomorrow.
That's why consolidating your student loans is so important - student loan consolidation puts more money in your pocket today, now, when it can do more for you. Every monthly payment you make is lower after you consolidate, which lets you put the savings towards other things in life.
Get Started on your Student Loan Consolidation »
Debt Service
The past few years have brought many changes to personal finance, from higher interest rates on student loans and credit cards, to lower rates on mortgages. This is why student loan consolidation is so important - by locking in your rates, you insulate yourself from future rate increases. By lowering your monthly payment, you'll free up valuable cash to help pay down other, higher rate debts like credit cards, too. Plus, consolidating your student loans now can free up money so that you can get rid of other debts as quickly as possible.
Get Started on your Student Loan Consolidation »
Prices derived from the Federal Reserve Bank of Minneapolis Consumer Price Index Calculator. Give it a try! Prices updated for 2011.
