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Should You Consolidate Your Student Loans?

Are you making separate student loan payments each month on student loans? You may want to consider consolidating your student loans. Student loan consolidation and refinancing can help relieve some of the pain caused by multiple interest payments.

Student loans are tough these days. The most recent student loan debt statistics show 71% of college graduates are graduating with some form of debt. 7 out of 10. Crazy! What’s more, some borrowers are stuck with high-interest rates as well as multiple monthly payments from several different student loans.

Advantages of Student Loan Consolidation

Besides single monthly payments, although very convenient, a consolidation loan may bring a few additional perks to student loan repayment. The Department of Education’s government-backed student loans offer a couple of alternative repayment options including the popular income-based repayment plan. However, non-federal consolidation loans tend to offer an even wider variety of repayment options to borrowers aimed to fit many lifestyles.

Disadvantages of Consolidation

One of the largest concerns with student loan consolidation is it might in some cases increase your total loan cost. This fact is especially true if you choose to extend your repayment terms.

The Final Thought

Student loan consolidation is a great option if used correctly. Many borrowers may have the ability to lower their monthly payments through a lower interest rate and longer-term length. But before jumping to consolidation we strongly suggest looking at any incentives you may have left on your current loans.

With the help of LendEDU’s blog, tools, and resources, our goal is to assist you in making educated financial decisions. LendEDU: Educated Financial Decisions.