Most new graduates usually do not earn much at their first jobs, making it difficult for them to meet their student loan payments. If you need to lower your monthly payments, and you anticipate that you'll be earning more in the future, then consolidating your loans may be the answer to your problems. When you consolidate your student no credit check payday loans direct lenders only, you'll be making smaller monthly payments since you'll be repaying the debt over a longer period. This is one of the major loan consolidation benefits. Other benefits include making only one monthly payment rather than multiple payments to several lenders, no penalties for early repayment or overpayment and the interest payments are income tax-deductible.

Student short term payday loans no credit check consolidation benefits also include interest rate reductions offered by lenders to those who sign up for automatic direct debit programs and make prompt repayments, in order to encourage borrowers to sign up with them. On the average, you will get a 0.25% discount if you direct-debit your payments and a 1% discount if you have paid promptly for 36 months. You should be aware, however, that you will lose the reduction permanently if you are late with just one monthly payment. Even if you're enrolled in direct-debit, you can still be late on a payment if you have an insufficient balance in your bank account.

Another thing to keep in mind is that, although you'll enjoy student loan consolidation benefits in the form of lower monthly payments, in the long run you'll end up paying more in interest rates. Since loan consolidation can increase the repayment term from the standard ten for student loans to as much as thirty years, you may end up paying as much as double or more of the interest you would have paid on your non-consolidated loans. However, you can reduce the amount of extra interest you'll end up paying by increasing your monthly payments once you can afford to do so.

Those pursuing careers in low-paying fields may also want to consider an income-based repayment (IBR) program rather than loan consolidation. Under an IBR plan, your monthly payments will be capped at an amount based on your income and family size, although you will be paying off your direct lender loans no credit check for 25 years rather than the standard ten years of student loans. However, if you qualify, any remaining balances after 25 years will be canceled. Still, if you believe that student loan consolidation benefits outweigh any potential drawbacks, then you should sign up for a loan consolidation program.