Student loan consolidation advice


Student loans have helped many people acquire higher education. However, as tuition fees continue to escalate each passing year, there has been an increase in the number of people with late payments and also those who default on their loans while emergency. Payment of these advances has proven to be difficult to most people.

At first, when students take thousands of dollars in student loan, they give it little thought. That is until they graduate and then, they realize that they have six months until they start to face consequences if they ignore the loan. And with most being unemployed, the reality sets in that they have to find a way to pay their debt.

People will results to different means so as to reduce the effect paying these student loans. One such means most like to lean towards is loan consolidation.

What is a student loan consolidation?

The main aim of this is to make paying off balances of multiple advances more manageable.  As the name suggests this is achieved by consolidating or in other Home Maintenance terms combining several of your student loans into a bigger advance from a single lender. By choosing this route, you get more options in which you can choose to revise repayment arrangements.

While this might immediately appear to be the best option, it isn’t always the case. It’s tempting to go into this method without much thought, especially when you are spending most of your money on these loans as compared to groceries and other uses.

When to turn student loan consolidation

There are several reasons people tend to jump on the chance to combine their student loans and they include:

  • Lower interest rates: This is a pretty obvious advantage and it means for newer grads all money they earn is focused solely on repaying their loans and coupled with lower monthly rates, it means they can pocket a lot more money per month.
  • Enable easy management of your loans by consolidating them into a single easy payment.
  • Releasing a cosigner is another reason why people sign up for consolidation. If you used a cosigner to sign up for your student loan due to poor credit or lack of enough of it, then releasing them is a logical response once your financial situation has stabilized.

When not to consolidate student loans

While the advantages of combining multiple advances are well documented, sometimes it’s best to let it slide and continue your payments as usual. Such circumstances include:

  • Payments are not a drag to you. If you are okay with the current payment arrangements you should not be enticed by the consolidation of these loans due to their potential of paying less. This is because, in the long run, you will actually pay more when you opt for consolidation
  • If you are close to completing your loan payment, consolidating should not be considered as you are capable of finishing the remaining debt in a few years.
  • While monthly payments are reduced, consolidation will increase your lifetime cost. Besides the increase in cost, you can be denied the flexibility of choosing different repayment arrangement.


Before you decide that you want to take this route, it’s thus important for you to have a clear understanding of the benefits and also the circumstances that might make it an unsuitable method to give you a much-needed relief when it comes to your student loans.

Another thing you have to be cautious about when you choose to combine your loans is the existence of scammers who are quite convincing and are ready to pounce on the chance to prey on unsuspecting individuals. No matter how dire your financial situation is, you should never get into deals with companies without properly vetting them.



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