Pros and cons to consolidating student loans

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Your grace period on some loans could end prematurely, or you may end up consolidating at the wrong time – too early or too late.

Not all student loan debts can be consolidated, although most federal loans can.

First, consolidation is when you combine multiple student loans into just one loan.

This is a good option for borrowers who already have good rates and who are looking to simplify loans from multiple servicers.

Consolidating those loans into a single new one can simplify your payments, especially if your loans are with different loan servicers, the companies that oversee your payments.

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Private education loans are not eligible for consolidation.

Many students graduate with more than one student loan, and some graduate with as many as a dozen or more.

If you currently have multiple student loans, you could benefit from a consolidation loan on your student debt.

Historically, that may have been accurate, since consolidation was often used as a way to lock in a low interest rate on variable-rate loans, says financial aid expert Mark Kantrowitz.

But that hasn't been the case for the past decade, since the government stopped issuing student loans with variable rates.

But before you head down that road, here’s what you should know.

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