College graduates with student loan debt is common as the cost of college arises in the nation and it’s becoming a rare incident for the majority of college students to get a full ride to college through scholarships and financial aid. However, after graduation and a grace period for most, student loan bills begin to come in the mail and students with multiple student loans may feel overwhelmed.
However, low interest student loan debt consolidation may benefit some college graduates in dealing with their debt. Most student loan lenders will offer debt consolidation programs, but be aware that different kinds of debt may not consolidate. Student loans from the federal government and institutional loans, for instance typically don’t consolidate, so be sure you have student loans that will.
Also, if you have a large amount of student loans, that will consolidate, you may want to consider consolidating but, a few loans may cost you more if you consolidate, since even at a low interest rate a higher amount will take longer to repay and rack up some interest.
Consolidating federal student loans may qualify you for an income-base repayment program and could allow you to be forgiven of your student loans depending on time and your career, as well.
Yet, keep in mind that you will want to be wary of the repayment period if you do consolidate as, again, even a low interest student loan consolidation can cost a lot over the long run. Financial Aid counselors advise that students look at what they will spend by keeping their loans separate versus consolidating before they make a decision, and as simple as that sounds, it’s the best way to determine if student loans are right for you.