Students with a large amount of student debt when they leave college often turn to a student loan consolidation plan to make their debt more manageable. While interest rates for federal student loan consolidation are typically low, there are a few factors to consider before consolidating student loans.
Most of the time, someone with various student loans that are of the same type stands to benefit from consolidation. Multiple federal student loans or private student loans will consolidate with loans of the same kind, but different types of loans usually do not, so this is something to consider.
However, if you only, for instance have federal student loans, you are going to be able to consolidate them, again, as long as they are the same. Unsubsidized and subsidized loans are different federal loans that usually don’t consolidate together, so looking into you loan types is a first step.
If you are still only looking at the same types of student loans, then you will need to consider how many you have. Multiple student loans may be difficult to handle but only a few may be better left apart.
In the end, you have to look at what is best financially and what you want. Consolidation at a low interest rate is beneficial, but even a low interest rate can cost more over the life of a consolidation loan. Depending on the number of loans you have, the types, and interest rates, student loan consolidation is going to be either beneficial or unhelpful depending on your personal situation.