College graduates often have a variety of loans outstanding and while a few loans with decent interest rates may not seem like a problem, if you are not careful, those loans could start becoming a burden to your finances and hurt your credit score. A low interest student loan consolidation may be the thing that can help you get rid of student loan debt faster.
Multiple loans from various lenders can be tough to handle. If you have only one or two student loans under one or two interest rates, consolidation may not be best for you, but if you have multiple forms of student debt, and you don’t have much financial savvy, you may want to look into your options for low interest student loan consolidation.
If you do discover that consolidation is the best route for you there are a few things to be aware of. First, certain types of loans will not consolidate, like federal, private or institutional loans. Typically, if you have multiple federal loans and an institutional loan, you will not be able to consolidate these into one loan, so check to be sure you are able to group your debt under one roof.
For instance, if you have a student debt consolidation loan and one outstanding loan like a institutional loan, that can be manageable, but keep in mind the repayment period on your consolidation. A low interest student loan consolidation loan may bring an affordable monthly payment, but it could cost you much more over the long run if you only pay minimal payments.
Making a budget and repayment plan of your own can save you interest and get you out of debt faster, so you may also want to look into paying more than your minimal requirement on your loan consolidation each month.