If you have just graduated from college, you are to be congratulated. You have worked hard for several years to get your degree, but don’t think anyone is going to offer you a break now. First of all, you are going to have to get into the job market and find gainful employment, but even before that, your student loans come due. That’s right – remember that the deal is to begin paying that money back upon graduation.

Many students have funded their education with more than just a single loan. The idea of having to begin paying that money back, especially if you do not have a job yet, can be quite daunting. Don’t worry too much, however, because there is an option that can save you a lot of money. You can find a lender who will give you a loan consolidation.

The idea of finding a lender may seem a little unsettling, but you need not worry. There are many lenders who offer student loan consolidation, from banks to loan brokers. In most cases, you don’t even have to pass a credit check for a student loan consolidation. You can do a search on the Internet and find loads of lenders, many of them specializing in student loan consolidation, who will be very willing to discuss your situation.

A student loan consolidation combines the total of your student loans under one lender. This simplifies your monthly payments, as you have only one entity to pay each month. A student loan consolidation can also reduce your monthly payments by lowering your interest rates and changing the term of your loan.

Let’s say that you have financed your education with two student loans and a personal loan, as well. The first student loan was made at an 11% interest rate; the second at 9.75% and the personal loan was at an interest rate of 13.25%. The average interest you are paying comes to 11.33%. Any lender who can give you a lower overall rate than 11.33% will be saving you money on your monthly payments.

The other consideration is the term of your student loans. Under consolidation, your lender will change the term of your loans to a slightly longer duration, in order to save you money on monthly payments.

However, since the amount of your payments and interest are reduced, any negative impact of an increased term is substantially blunted. You might, in fact, save money despite the extended term.