Applying to college is an exciting part in the life of young adults.  It can be a little more stressful for the parents as the cost of higher education continues to rise.  Planning ahead and saving early will relieve a lot of that tension when the time comes.  For many students, though, planning ahead is not enough.  Financial aid is available to those students so that they may attend college and focus on studies, rather than worry about how tuition is going to get paid.

That these loans are so readily available is a great thing and many a successful person can thank their financial aid loans for their satisfying careers and achievements in life.  However, there is a period after graduation when reality hits.  This is the time when the big job has perhaps not presented itself and the big income is still in the future.  This is the time when the financial aid payments are due.

Depending on the situation and the degree, these payments can be significant.  Although, any payment is significant if no income has yet been established.  There is help at these times, as well.

Financial aid consolidation is a program of combining several student loans from various sources into one bigger loan from a single lender.  This usually involves a smaller payment making the monthly obligations easier to meet, as well as more manageable having only one payment to make, rather than several to keep up with.

The interest rate of a financial aid consolidation loan could be a little higher given that it is calculated using the weighted average of all the loans rounded up 1/8 of a percent.  There is an 8.25% cap. Other than the slight increase in interest rate, there is no cost associated with a financial aid consolidation loan.  It is also important to note here that no fees should ever be paid up front in association with any education loan.  Any attempt to collect fees up front is most likely part of an advance fee loan scam.  When it comes to repaying your financial aid consolidation loan, a standard ten year pay off will include the least amount of interest.  If the minimum payments are too high, however, the loan can be extended up to 30 years.  Consider carefully before choosing your extension because interest increases with each extra year.