Many graduates from college often have some form of student loan debt which they must carry with them when they enter the “real world” and for many, they may have acquired so much debt that it is difficult for them to repay. Often, college students will borrow various student loans at times from either different lenders or they will simply have multiple college loans.
When this is the case many graduates turn to student debt consolidation loans in the hopes that a lower interest rate on a consolidation loan is going to allow them to manage their college debt without much trouble. While federal student loan consolidations are often very affordable and come with low interest rates, and there are some private student debt consolidations that may be beneficial, so students need to do their homework before consulting.
Anyone with two or three student loans will probably benefit by keeping them separate and paying on them as they are. However, multiple student loans that may be causing a college graduate financial hardship due to the inability to meet the monthly payments of their student loan debt and other expenses as well, may be able to alleviate some of the strain by consolidating.
It’s important to keep in mind that anyone who consolidates their student loans will have to keep a close watch on not only the consolidation repayment timeframe but also the minimum monthly payment as well. Even at a low interest rate a student loan consolidation can cost a lot more over time than if you had kept the loans separate. Yet, if you want a student loan consolidation so that your loans are in one place you need to consider forming a repayment plan that will allow you to pay more on your student loan consolidation than just the minimum payment.
Being able to manage college debt is something that’s very important in making your financial life a little easier, however, you shouldn’t have to pay more than you need when it comes to student loan debt and for this reason figuring out how much money you will pay by consolidating versus keeping your loans separate is going to show you which route will be the best for you.