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The features of student loans are included into debtconsolidation loans to give them a distinct character, suited tothe student debtors. Repayment of the student loan debtconsolidation for instance, differs from the regular repaymentmethods. The repayment will be due only when the studentgraduates from studies. This means that repayment will beginonly when the student begins to work and earn. Parents andguardian will appreciate this feature since this helps themshift a part of their financial burden.
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Loan consolidation allows students to combine multipleloans intoa single instrument, one loan from a single lender. In effect,this is like refinancing a mortgage or credit card or other debtconsolidation - multiple debts reduced to one. The balances ofthe multiple loans are paid off by the loan consolidationlender, and voila' - a single loan payment at a more favorableinterest rate. Translation: lower monthly payments, lessoverhead costs for the borrowed money, and more immediate cashflow to spend on more important items today.
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