Many students graduate with more than one student loan, and some graduate with as many as a dozen or more.If you currently have multiple student loans, you could benefit from a consolidation loan on your student debt.You may be able to extend your repayment terms, pay a lower average interest rate, reduce your monthly payment amount, fix your interest rate or simply benefit from having a singular, simplified and streamlined monthly payment amount.

pros cons consolidating federal loans-15

Everyone tries to act like Color Me Badd never happened.

They happened, just like your love for Color Me Badd happened.

You liked the guy that looked like Kenny G, you like the guy that looked like the third member of Milli Vanilli, you liked the guy that looked like George Michael, and you liked the guy that looked like George Michael with Vanilla Ice’s haircut. But above all else, don’t ignore your student loans.

Ignoring something that you want to forget may be a mildly successful technique when it comes to 90’s man-bands, but it sure as hell doesn’t work for all those student loans that you took out in college. I will have an entire conversation with a new client about everything in his/her financial life, and without fail, they won’t bring up student loans unless I ask about them. You DO NOT want to still be paying for you college when your own child is in college.

You may end up paying more in total interest after you consolidate your student loan debts.

You could lose some of the benefits from your subsidized student loans.

Your grace period on some loans could end prematurely, or you may end up consolidating at the wrong time – too early or too late.

You didn’t have the money, no matter what the circumstances, to pay for college, and so you borrowed money to get your education. Once I can get people to come to terms with the fact that they have tens of thousands of dollars in student loans, then inevitably the next question out of his/her mouth is “should I consolidate them? You know that weighted average calculation that you learned back in high school? Bottom line: If you are going to do it: do it early, do it cheap, and don’t stretch out your payment schedule too far.

The final interest rate that you pay must be lower than the aggregate rate of all of the separate loans.

Or, if you aren’t happy with that solution, post a comment at the bottom of this post with your loan details and I will try to answer as many of the comments as I can. You can only consolidate your student loans once, so it has to make complete sense for you.

I will lay out the pros and cons, and you can decide for yourself. Pros My recommendation I would recommend consolidating your student loans if you can get a lower fixed interest rate. Although it seems like interest rates will never go up again, they will.