Most federal student loans are eligible for consolidation. A consolidated loan combines multiple student loans into one loan and results in a single monthly payment instead of multiple monthly payments. It’s important to review consolidation rates and carefully consider whether loan consolidation is the best option for you. While consolidating your student loans can lower your monthly payments and simplify the repayment process, it can also significantly increase the total debt you owe.
Lowering monthly payments is an attractive deal and can make it easier for many people to repay their student loans. But consider the fact that you will be making these lower payments for a considerably longer time. It’s also important to consider the impact of losing any borrower benefits offered under repayment plans for the original loans such as interest rate discounts, principal rebates, or some loan cancellation benefits.
Research student loan consolidation companies and weigh the pros and cons before you sign up for more debt.