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With the economy in its current state, many individuals who have outstanding state and federal student loans are falling behind or defaulting on their payment plans. Because this can be very detrimental to interest rates and credit scores, a large percentage of this group is looking further into student loan consolidation programs. These programs are geared to help eliminate a large chunk of student loan payments for those who qualify to participate. These programs employ a loan consolidation calculator to determine eligibility. The loan consolidation calculator calculates the cost of a monthly loan payment in conjunction with interest rates and the total overall cost of the loans, and then compares them to the cost of a consolidation loan. There are a lot of factors considered with a loan consolidation calculator, as it must examine repayment calculations, as well as outstanding loan balance, interest rate on said loan, as well as the remaining term on the loan. All of the information is important, because it is factored into the calculation of a consolidation loan to determine the program that best meets the needs of the consumer. One of the differing factors of a loan consolidation calculator is that it does not incorporate any calculation of income and, therefore, does not include a repayment plan dependent upon a consumer’s monthly income.

Student loan consolidation is beneficial in many ways, in that it allows individuals to combine multiple student loans into one payment. This concept allows people to pay one monthly payment that will apply to all of their outstanding loans, rather than having to juggle payments toward multiple different loans, which can sometimes be provided by different servers, as well. With consolidation, interest rates will be weighted with an average on the combined loans. Because of this, consumers are unable to save money on the interest rates themselves, but student loan consolidation will aid consumers as it will allow them to reduce the amount of time they spend managing payments toward different loans and providers.

One of the more credible student loan consolidation calculators is provided by FinAid. As the SmartStudent Guide to Financial Aid, FinAid allows consumers to calculate their loan consolidation online. One of the informative aspects of FinAid is the ability to input a variety of loan types into the consolidation calculator. These loan types include both Subsidized and Unsubsidized Stafford Loans, as well as Perkins, PLUS (DL), and Consolidation Loans. Those visiting the student loan consolidation calculator are able to enter in the balance on up to twelve loan types, as well as the current interest rate and loan term prior to receiving their repayment calculation.

One of the second top-rated student loan consolidation calculators is provided by Credible. Although Credible does not offer the same range of options as FinAid, this program does allow individuals options to refinance. While there is information that needs to be input into a variety of fields, Credible offers a solution within about a minute and a half. This consolidation and refinancing program partners with a variety of company to offer more options and create less debt for consumers. Because of the information Credible is able to gather and process, the average individual experiences a savings of almost nineteen thousand dollars!

While there are a variety of student loan consolidation calculators available at a consumer’s fingertips, it is important to find one that offers a solution based upon an individual’s specific needs and financial obligations. Although every consolidation calculator or program offers a baseline similar to its competitors, each will also offer its own perks, which can be limited to the initial cost of the loan consolidation. The important aspect is making sure individuals understand the benefits of programs such as student loan consolidation, and that they are aware of how to utilize the consolidation calculators to maximize their repayment benefits and opportunities.