The first part is to find out what type of loan or indeed loans you have.  This is vital as student loans come in Private loans and Federal loans.  Private loans often have greater rates of interest than federal loans so it is important that you calculate the joint cost of consolidating all the loans as well as calculating whether it would be better to keep them seperate.

Before trying to consolidate or refinance you loan it can be worth your while to improve your credit score.  This can be helpful as the better your credit score, the more eligible you are for a loan and you will get a preferential rate of interest on borrowed monies.

Keep a good eye on the current interest rates and try to gauge whether or not they are on the rise or are falling. Unlike most loans, student federal loans only change their rate of interest once every year, normally on July 1st.  It can be in your favour to lock in to a particular rate depending on the current rates and where you think they will end up.

Make sure that before signing any new paper work that you fully understand the responsibilities of the new loan and what rights you have with it.  You will often get the choice to lower the loans interest rate, extend the length of the loan or both together.  Calculate all the options prior to signing and see what is your preferred method.  Once signed, you will not be able to change the contract.

There are many different offers which give discounts and other incentives and you should calculate these in when comparing different deals as they can often lead to a reduced rate of up to 1%.  These discounts are normally through schemes such as early payments, automatic and on time payments.

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