The interest rates of the student loans have now become historically low and if the process of consolidation is carried out now, the students will be able to save thousands of dollars as debt and interests over the entire term of the loan. The debt consolidation companies will always have good offers for the debtors who will make the payments on time. Consolidating the debts will also allow the students to have lesser amounts as monthly installments thus making way for more money to add to the principal amount. In other words, the student debt consolidation procedure will reduce the monthly payments to half the original amount. The single payment structure will undoubtedly become simpler with the debt consolidation programs. There will only be one creditor and a single amount which is to be paid to them. The payment of debts can be stretched for a longer period of time which makes it more convenient for the students to have more time irrespective of the existence of financial difficulties. On the other hand, the greatest advantage of a federal student debt consolidation is that the students are actually able to choose from the various programs which would actually suit their debt types.
Lastly, there is no penalty for the early settlement of debts for the student loans which makes it possible to add more amounts towards the principal and lessen the interest amounts to a large extent.