Consolidation Management Tips & Techniques

Save Money and Get Ahead

Consolidating your Federal student loans is not the end of your money management concerns. There are things you can do to ease your financial burden further or see to it that you accelerate your way to financial stability and success.

• Start your Savings


Having an emergency fund in the bank is one of the keys to financial liberty and success. Most expert financial advisors recommend keeping 3 to 6 months worth of your living expenses in a safe, non-investment account. This savings account will bring you peace of mind and the ability to more easily manage your other debts through investment.



• Set Financial Goals


One of the most common mistakes that people make in managing their new finances after getting a consolidation loan is in not planning for their money well. Rather than just having extra money and letting it slip through your fingers piecemeal, you should set specific goals for things that you want to save for such as a new car, a house down payment, or that skiing trip you might be interested in.



• Keep in Touch with your Lender


Even if you sign up for automatic payments on your loan, you should make it a point to speak with your lender at least once every six months. Situations may change in the marketplace or in your loan to enable you to take advantage of special offers, new rates or other ways of modifying your loan in order to save time and/or money on repaying it.



• Interest Deductions


When tax time comes around, make sure you are deducting the interest that you pay on your student loans. Depending on your income, this can represent a substantial savings to the amount of tax burden you will be required to carry. If you are still in school the savings can potentially be even greater. Speak with your accountant for more specific information as to what savings you can take advantage of.