Why Student Loan Consolidation May be a Good Idea for You

Posted June 30, 2017

Student Loan Consolidation 101

It’s no secret that higher education is expensive, and that paying for that education can require students to take out multiple student loans, often from multiple sources. This can lead to a bewildering number of loan payments, repayment terms, and lenders for a recent college graduate to keep up with when the time comes to repay those loans. This is where student loan consolidation can help.

Rather than having several lenders and several monthly payments, student loan consolidation allows you to consolidate all these loans into one single debt and one single monthly payment. Better still, loan consolidation allows you to have better control over your finances — and your credit rating — by simplifying all those loans with varying interest rates into a single loan with a single interest rate.

Here are a few of the advantages to student loan consolidation:

Multiple student loans are consolidated into one single debt with one single monthly statement, so not only do you make only one payment, you have a clearer picture of your total debt.
Loan consolidation can improve your overall credit score, meaning things such as home or auto loans can be obtained easier.
Combining your loans into a single debt will often result in better loan terms, such as more time to repay the debt in addition to a better overall interest rate.
You will be able to switch any variable-rate loans to a fixed interest rate, giving you better control over the debt and potentially saving you a considerable amount of money.