College debt consolidation loans are available for many students who might have various sources of financial aid debt. Many college students will often have multiple college loans when they exit school and these students often find that repaying these multiple student loans can be difficult.
Federal student loans usually offer some of the best interest rates when consolidating student loans debt. However, private loans cannot be consolidated under federal student loan rates, so it’s going to be important to make sure you have the same type of loans before you consolidate. Student loans like private and institutional loans, and even federal student loans that are unsubsidized or subsidized, typically will not consolidate so, again, looking at the types of loans you have is going to be the first step.
There are some people who believe that student loans should not be consolidated because it can be more costly to pay these loans back once a large amount is tacked on to an interest rate. Even with a low, affordable interest rate, student loans can cost more to repay over the long run when consolidated.
Many financial advisors will suggest paying off loans one at a time, starting with the smallest amount first, but the ability to do this will depend on your situation. The way to find the best route for you, if you have loans that will consolidate, is to figure out how much you will pay, factoring in time and interest, if you keep your loans separate versus using a consolidation loan.
Oftentimes, it will be a good idea to contact your student loan lender in order to see about consolidation or repayment assistance options if you are having trouble repaying your student loan debt.