The Sallie Mae college loan consolidation program provides new graduates with an option that prevents defaulting on federal education loans and generates a few extra dollars monthly. Existing student loans are rolled into a one Sallie Mae Consolidation loan, which provides a lower interest rate (as low as 4.75%). As a new graduate, a few percentage points on interest rates can make a tremendous difference in the payments over the term of the consolidation loan. The lower payments leave more spending cash for life expenditures. Lower percentage rates could mean the difference eating a macaroni and Cheese dinner and a healthy meal.

The interest rate on federal student loans can change every year. When it changes, so does your monthly payment. With a Sallie Mae college loan consolidation, your interest rate is locked in for the length of the loan and that's a secure feeling you'll want to have. With Sallie Mae you will also have the option to increase the length of the loan, resulting in lower monthly payments spread out over a longer period of time. While this may be the best choice for you, especially now that you're just entering the job market; remember that a longer loan period means you're paying more in the long run.

Sallie Mae loan applications are free and there are no fees or credit checks required. Once the Sallie Mae college loan consolidation process has begun, existing loans balances are paid in full. This leads to a better credit rating.

It isn't uncommon for people to get in a bind sometimes and make a payment late at times, or not at all. If you've exhausted your deferment and forbearance options, it may be time to consider consolidation to give you a clean slate. A Sallie Mae loan may be the fresh start you need. If you see that your situation is getting to the point where you may default on one or more loans, applying for the Sallie Mae college loan consolidation program now can save you a great deal of trouble later.

There are four options for repayment within the Sallie Mae system: Standard, the Extended, Graduated, and Income Contingent.

The Standard Repayment Plan - fixed monthly payments, maximum loan term is no more than 10 years

Extended Repayment Plans - offer fixed monthly payments, loan terms range between 12 and 30 years and depend on the total amount of the loan approved, lower monthly payments are a benefit due to the extended payment schedule

Graduated Repayment Plans - loan terms range between 12 and 30 years, monthly payments are scheduled to increase at two-year increments

The Income Contingent Repayment Plan - calculated based on a number of factors including your annual gross income, family size and total amount of your consolidated loan and loan term is 25 years