Many students with federal student loan debt often have trouble repaying if they have more than one student loan outstanding. It is at this point many people turn to a student loan consolidation in order to get a low interest rate and group their student loans into one lump sum.
College loans can be burdensome to repay and many people feel that multiple interest rates cause them to pay more over the long run, so a student loan consolidation is going to be in their best interest. However, this may not be correct in all cases and anyone with student loan debt looking to consolidate their college loans may want to reconsider.
Anyone that has multiple student loan debts may benefit from a student loan consolidation. Yet, anyone with only a few student loans may fare better if they keep their student loan separate.
The reason for this is because separate interest rates on two or three loans may be easier to handle and may cost less in the long run than if a college graduate grouped those two or three loan sums into one consolidation loan. Even at a low interest rate a higher amount on a principle is going to cost more over the long run.
Student loan consolidations can be beneficial for some people but anyone looking into this option needs to look at their amount of student loan debt and do the math to figure out how much they will pay, with interest, if they keep their student loans separate verses if they consolidate for a lower rate. One also needs to take into account the length of the repayment time frame on these loans.
By taking the time to figure this out it should easily point you to the more affordable option for your personal situation.