Many students that graduate college have various forms of student debt and a lot of those students are opting to consolidate those student loans in a low interest consolidation loan. However, many college students are wondering if this is the best way to go when dealing with student financial aid debt.
Consolidating student loans into a low interest student loan consolidation loan may benefit students that have various forms of debt of the same kind. Typically, if a student has some private sources of student loans and federal student loans as well they will not consolidate.
There is the option of consolidating these types of debt separately, but if a student only has a few sources of student debt they may want to take a step back and form a repayment plan of their own.
Paying as much as you can on your loan debt is going to obviously get you out of debt faster, but it will also save you money on interest as well, so making minimum payments on all but one of your loans, and then paying much more on one particular loan until it is paid off, may be a better way to go.
However, if you have a lot of student debt, from multiple sources, and you’re worried about the interest rates on your loans, consolidating your loans to a low interest student consolidation loan may be the best bet.
Remember though, you need to be aware of your repayment period and interest. This, again, is a situation where you may want to pay a higher amount than is required since you are going to pay more than you have to over the long run when factoring in interest.