How Do I Know If I Should Consolidate My Student Loans

Q: How Do I Know if I should consolidate my student loans?

A: Student loan consolidation is used to reduce and simplify your monthly student loan payments by “consolidating” all of your separate student loans into one. This can be a great option if you are having difficulties making your student loan payments, however, keep in mind that student loan consolidation lengthens the period of repayment, and could increases the total amount you pay in interest over the life of the loan.

Determining if student loan consolidation is right for you is a personal choice that is different for each borrower. If you decide that student loan consolidation is the right choice for your financial situation, here are the 2 most important tips when it comes to consolidating your student loans:

1. NEVER consolidate your private student loans and your federal student loan together. You must ALWAYS consolidate your private student loans into a private consolidation loan, and your federal student loans into a federal consolidation loan. Federal consolidation loans typically offer better rates and terms than private consolidation loans can, therefore you won’t want to consolidate your federal student loans into a private consolidation loan and forfeit those options.

2. Consolidate your student loans as soon as you can, even before your grace period is over. This can help you to lock into better rates for your consolidation loan.

Before making a decision to consolidate your student loans, do your research. Start by visiting our Student Loan Consolidation section.