While students with federal student loans now have all the promising options from the government to get a debt relief, borrowers of commercial private student loans seems to have no choice then to continue being heavily burdened by their massive debt load. Students who chose to firstly exhaust all of the “free money” available out there (such as government grants for education, scholarship and others), then turned to federal student loan, keeping the option to take out private student loan as their last resort will have more chances in getting debt relief through all kinds of student loan forgiveness or repayment program. However, no matter how hard you search, it is impossible for borrowers of private student loans to have the same chance of debt relief above.

In 2009 the average student graduating from a 4-year private university left school with a student loan burden of over $27,000. Even with their federal student loan, they still have very limited options to get rid of that tremendous burden. With a private student loan, the options is reduced down to zero.

The only chance for private student loan borrowers to have a little bit of debt relief is by simplifying their student loans into one single loan. The first major decision you need to make immediately after you graduate is consolidating your private student loan. Usually as soon as a student graduates, he will be bombarded with so many letters and emails offering them student loan consolidation programs, where they can bundle all their loans into only one single lender and also payment plan.

By doing this, it will help you lower your total monthly plan by a lot. With a $10,000 private student loan, for example, through student loan consolidation your potential annual savings on student loan repayments would be over $230. Just for comparison, a private student loan of $100,000 a student who consolidates the loan  may end up saving over $2,000 annually. There is a website that has a chart that can show your potential savings with a private student loan consolidation program, just click here to see the chart.

However, the student loan consolidation business has changed from previous years, causing students to find it more difficult to decide whether they should consolidate their private student loans or not. One of the issues now is the higher interest rate. If you are  considering a loan consolidation, make sure that you compare the interest rate after consolidating with the rates that your loans currently have.

You will be able to receive discounts and rewards if your consolidated student loans are paid off using automatic payments of credit card. However, the option to pay using a credit card may cause you to end up in an even worse financial situation if you do not immediately pay off your credit card when it is due.

Once again, compared to federal student loans, private student loans will differ in affordability and repayment options that are available out there. One of the limited options that borrowers of private student loans may have is to lower the monthly payments and have the loan period lengthen. This could be their best shot.

To apply for private student loan consolidation, click here.

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