Any student who has taken a loan before will know the experience of debt which could be resolved through certain consolidation methods. Debt of paying off what you owe the bank, financial institution or perhaps even a personal creditor who is helping you see through college, which could be solved. The problem with this is that for the period’s duration, which can extend beyond your graduation, it can prevent future lines of credit and financial aid from being made available. This is usually only relaxed or lifted when the outstanding monies owed is paid off, if debt consolidation is practiced on the existing student loan.
When such financial avenues are exhausted, it could cause many problems unless one learns how to consolidate debt resulting from the student loans. Trying to return to school could hit a roadblock as banks might not be willing to lend. Home loans will be next to impossible as the existing debt has to be cleared first, even if income is available to cover both. Many of these situations might be easily avoidable in the past, but with the credit crunch that has enveloped many financial institutions presently, there is increasing risk management by banks to reduce excessive lending, which has led to many individuals who need to know how to pay off massive student loan debt which they accumulated over the years.
With lines of credit exhausted and a potentially deeper hole being dug, the best way to solve this situation and make available money for lending is to pay off the existing debt. This can be done by consolidating present debt and making payments to eliminate it. There are many reasons to do so, but the main one will be that it allows a faster repayment period, meaning the debt can be paid off faster, partly due to lower interest payments. There are also many other positive compelling reasons to choose this option. There are also solutions that include income sensitive repayment options, or for a graduate that might not have been given without debt consolidation of the student loans.
What else can student loan debt consolidation help to achieve or prevent? It might not be widely known, but if loans that students have taken to pay their school fees or tuition are not paid off or serviced, it could open up a lot of potentially horrible trouble and problem situations. One of the biggest headaches is that the IRS will come knocking on your door and hand out stiff penalties. Students might feel that they can avoid bankruptcy laws, but unfortunately, their loans are include in the 
coverage and un-serviced debt will end in acrimonious circumstances. Imagine still being in school and facing the threat of being declared a bankrupt. That is partly why different ways of managing student debt through loan consolidation were created.
Another consequence of not paying off a student loan is a common one for all persons with debts. Credit ratings will be marked down. This leads to a worse situation. Banks and financial institutions are aware of individuals’ credit scores. They do not favor lending to such people. If your credit score is low with a lot of different loans yet to be paid, it is financially advisable to consolidate them into one single debt. While it does not eliminate the debt immediately, it helps with improving your credit score. This usually results because the situation is such that you are only paying off a single creditor, instead of many, which was the case before the debts were consolidated.
There are other worse fates when one accumulates debt as a result of massive student loans or default. It prevents you from going further in life and your career. Apart from resulting in possible penalties from the tax department and poor financial credit ratings, you will be refused access to obtaining business licenses and other opportunities. Governments will not issue you contracts if you were to bid for them in the name of your company. It makes the reason to clear your student loan debts in every way possible all the more important.
How does one perform student loan debt consolidation and live a better life with it? What it does is to help you begin life after college on proper footing, while allowing the possibility of returning to college again with new loans a distinct possibility. It also helps to reduce the financial burden one will feel after graduating, which can be frightening if it becomes difficult to procure a job to pay off the various student loans.
When can you consolidate your student loan debt? It is normally done during a period known as the grace period. The importance of that is revealed in the lower interest rate that is used to calculate the repayment amounts and period. This helps the loan to be consolidated in the favor of the student paying off the debt. If the process is taken up only after the grace period, higher interest rates will be applied and that will mean a less attractive consolidation payment. It is therefore much better to seek debt consolidation of your student loans during the grace period.
The best advantage at the end of the day to making this whole process convincing is the low interest rates currently available. Why pay more for the individual loans, when one can consolidate all the loans together and make a single periodic payment at a much more attractive and lower interest rate? It saves money, makes debt management easier and probably keeps your future brighter as a student before and after graduation.