College Loans Are Almost Mandatory With The Cost Of Tuition Rising

Student loan consolidation is a way for borrowers to manage multiple loans with varying interest rates by combining them all into one lump sum with one rate. Borrowers usually decide to consolidate when doing so will result in paying a lower interest rate. However, consolidation does not equal a lower rate; it's possible to consolidate multiple loans into one but end up with a higher rate of interest on the new principal amount.

Tuition Rates Increasing Yearly

With tuition rates increasing every year something needs to be done to help lower the cost of a college education.  If the amount of money it costs to earn a college degree does not start to decrease, higher education institution run the risk of pricing out some students who are unable to get financial aid.  Currently, a large number of students have to turn to federal student loans or private loans to pay for their college education.  Finding new and unique ways to help lower costs is a great way to make college more affordable for everybody.

Credit Unions

However, reports concerning credit union student loan lending has stated that, thus far in the 2010 through 2011 academic year, credit unions have originated $210 million in loans. Credit unions are often seen as affordable and can offer low interest rates, which could be true of certain student loan opportunities, but this again may come down to a borrower's particular credit union and their financial position. Yet, some advisers are suggesting that students who may have parents who are members of a credit union or themselves are a member may want to look at student loan borrowing opportunities from their credit union due to the fact that these loans could be quite affordable, in terms of interest rates, and there are reports that credit unions are also offering assistance plans if trouble arises when it comes to repaying student loan debt after graduation.