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There are several types of student loans that college students may choose to take advantage of. They are typically backed by the government, the interest rates are extremely low, and re-payment terms are very flexible. The big trend these days is to consolidate your student loans. It is a very competitive field right now and the opportunity to save money is extremely good.

Student loan interest rates are now extremely low. If you have many different loans and have not consolidated them yet, now is a good time to do so. If you are just starting out in school and are contemplating financing, at least you can be happy to know that rates can be locked in for the life of the loan. However, many graduates still owe thousands of dollars and their rates are still several points higher than they need to be.

However, be warned: You can only consolidate ONCE. This loophole has allowed for some predatory lending practices by lenders out there. Let's say you have a student loan right now that is currently running 7%. Your lender calls you up and says it is a great time to consolidate... they will give you a 5% rate and you do not have to do anything but sign a piece of paper. They will tell you this is because rates have fallen, but mainly they will tell you how good a customer you are and tell you how great a favor they are doing you. WAIT! 5% might save you a hundred bucks a month, but check other banks. You likely can find something for 3.5% . The bank just wanted to lock you in since they know you will not be able to consolidate again. This loophole has cost many people thousands of dollars. It may be legal, but it is a system that is not right. Do not trust anybody who wants to give you money for nothing.