Student loan repayment can have a significant effect on a student’s decision to attend a particular university, study a certain major or accept a specific job. According to a Princeton University study, as little as $10,000 of additional debt can affect a graduate’s decision to take a job in the public service sector.

The lower pay scale of these positions means that many students who would otherwise accept public service jobs shy away, for fear of not being able to manage their student loan debt. Additionally, research shows that students who graduate with no debt are three times more likely to pursue advanced degrees than students who exit their undergraduate studies with student loans.

With the changes adopted by Congress earlier this year when it passed the College Cost Reduction Act, many students are now considering careers in lower-paying sectors because the Act contains provisions that allow for income-based repayment schedules and student loan forgiveness for graduates who take jobs in the public sector. The student loan forgiveness provisions are meant to encourage graduates to take jobs as police officers, teachers in certain areas, rural health care providers, public defenders and other government jobs.

Additionally, graduates can also consider taking lower paying jobs in the private sector, knowing that their student loan payments will take into account their post-graduation income. For some professionals, this reduces the stress of finding a job that pays adequately to cover their student loan obligations.

I have blogged about student loan consolidation in the past on other websites, and will continue to do so because it’s one financial move that makes a lot of sense! Student loans taken out prior to July 1, 2006 come with a variable interest rate. Variable interest rates don’t always work in the borrower’s favor and many borrowers find that the uncertainty of a changing interest rate makes it difficult to plan ahead.

Additionally, without consolidated student loans, you’ll be making individual payments on each student loan you’ve taken out. Over the course of a four-year degree, that can add up to a significant number of payments. Aside from keeping track of several payment due dates and amounts, you will probably pay a higher interest rate than you would if you consolidated your college loans.

Student loan consolidation makes a lot of sense; no matter what angle you look at it from with perhaps one notable exception. If you have Perkins loans, you probably won’t want to consolidate those loans. This type of student loan is made to low-income students who have a fixed interest rate already. Further, they have certain payback benefits/features that would be lost if these student loans were consolidated.

The majority of students, however, have unsubsidized Federal student loans. These college loans are prime candidates for consolidation, regardless of when they were made. Student loans made after July 1, 2006 have a fixed interest rate at 6.8 percent. Parent loans have a higher fixed interest rate thanks to an uncorrected goof by Congress.

College loan consolidation will relieve you of making multiple payments, and paying multiple interest rates. With consolidated student loans, you can also stretch out the payment terms. If your original ten-year term means that you’ll be making hefty loan payments, a consolidation loan will allow you to stretch out the payments to twelve, fifteen or even twenty years. This is a great deal, especially for graduate students and for those students who aren’t making much straight out of college.

You can also consolidate your student loans any time you want to. You don’t need to wait until your education loans are in repayment. You can consolidate them while you’re still in school. The only time you’ll have difficulty consolidating your college loans is if your loans are in default. Since consolidation can help you avoid default, look into student loan consolidation options sooner rather than later.