But student loan consolidation is not solely for the degree packing student. Many students who have not completed their degrees but have dropped out of school or dropped below full time status are also in repayment only six to nine months later. Student consolidation can work for these students as well, and is a great alternative to ruining your credit record. And before you consider bankruptcy, be forewarned - while certain private student loans may be discharged under the bankruptcy code, no federal loan will be.

One of the biggest benefits of obtaining a student loan consolidation is that you can reduce the interest that you are paying on your existing loans. This is particularly true of higher interest private student loans that may be literally costing you an arm and a leg. Student loans are less flexible than student loan consolidation programs in the repayment terms that you must adhere to, as most agreements are basically written in stone.

With a consolidation loan, you can choose to defer payments or extend the period of repayment to a longer number of years, reducing the total amount of money that you must come up with each month. This is a good way to keep more of your income in your pocket to pay for everyday necessities and other bills that you have, allowing you to rely less on expensive credit cards or charge accounts.

Mary Wise is a personal loan consultant who has been associated with Bad Credit Loans and has more than thirty years of experience in finances. She has helped a lot of people to obtain Fast Unsecured Loans, home loans, car loans, unsecured credit cards and many other products regardless of their credit situation.