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Student Loan Consolidation

Graduating from a school or college is the moment of ultimate happiness and achievement. But on average the students have a burden of student loans which helps them in the accomplishment of their dreams and make them closer to the better career opportunities. Taking a student loan is not a bad thing, but everything which provides you benefit must come with the disadvantages. You may need to eventually consider a student loan consolidation.

If you have taken a student loan, then it is might not only a single loan because you need to borrow the loan for your every semester throughout the graduation. And still further if the federal student loans are unable to cover the educational expenses you have taken private student loans too.

One way to go for paying off multiple student loans is the student loan consolidation in which you combine all your loans into a single huge loan possibly with a new lender. Because this is a new loan you get the new policies, new interest rates. Consolidating student loan is an individual’s choice based on their financial condition and loan specifics. We will discuss pros and cons of student loan consolidation.



Having multiple loans can give you difficult time in keeping track of their repayments and remaining loan amount. You have to invest a lot of time in organizing them. Consolidation allows you to put all your loans in a one or two loans which enhance the simplicity and organization for tracking the progress. You have to make one or two monthly payments only. And for these, you can easily manage the whole records and helps you to avoid missing payments by forgetting.


Consolidation allows you to get lower interest rates overall in comparison to your rates on previous multiple loans. And your payments per month are also reduced because of extension in the repayment term. It can benefit you in paying the payment timely each month.


Consolidation offers lower interest rates, but it will go lower if you improve your credit score by maintaining a good credit history and making payments on time. Like after graduating you get a good job, and you maintain your financial score good than you are eligible to get lowest interest rates than you were at before graduating.



Combining your multiple loans into a single one will give you a big loss by the cancellation of all your benefits which were given to you by the lenders while borrowing loans. But since you are changing your lender all your benefits are not allowed to avail. For example, if your previous lender is offering you loan forgiveness after consolidation you won’t get this.


The borrowers can be tempted by the lower repayments initially, but consolidation can lengthen your repayment term. And you can remain in the burden of loan for a longer period.


Consolidation for private loans with private lenders offers variable rates over the course of your loan payments. Beware of the variable rates as they increase with the time and sometimes become too high to put you at a loss

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