Many students that are struggling with student loan debt may benefit from a student loan consolidation. Consolidating student loans groups your student debt into one lump sum, which can make it easier to manage, but there are many financial advisors that say graduates should do their homework before jumping into the world of student consolidation.
Consolidating student loans isn’t as simple as it may seem. There are certain types of loans that will not consolidate, so making sure you have loans that will consolidate is something you need to look into before proceeding.
Advisors also caution against student loan consolidation when a graduate has only a few loans. Even if those loans are the same kind of loan and a student can get a low interest student loan consolidation it will cost more over the long run since a larger amount will be attached to that low interest rate.
Consolidating student loans comes down to financial interest. If missing payments or high, accruing interest rates are going to cost you over the repayment life of your student loans the consolidation may help you manage your debt.
If smaller payments and a few loans can be kept separate and paid off without having to consolidate, then it may be in a graduate’s best interest to keep the loans apart and form a repayment plan within their budget.