We’ve heard it before, “I got out of school with massive student loans and I’m earning half of what I should be earning, but jobs in my field are scarce…”; “The challenge of paying living expenses, student loans, credit card debt is overwhelming, and then, it feels like there’s always some emergency repair…” There are a variety of situations that we hear from people like you. The job market may not be as accommodating as you thought it would be, but that’s no reason to ignore your student loans. Whether you have private or federal student loans, you may want to consider consolidating all your loans into one payment.
Loan consolidation is when you combine several student or parent loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. They also provide an opportunity for alternative repayment plans, making monthly payments more manageable.
Student loan consolidation is not for everyone and you should not assume that it is the right thing for you. There are pros and cons to loan consolidation. For your consideration, we list some of them to get you started.
|One payment for all your student loans||Longer repayment period|
|More breathing room in your budget||Pay more in interest over time|
|Lower Monthly Payments||May lose some benefits from original loans that can significantly reduce the cost of repaying your loans|
|Alternative Repayment Plans|
|Switch variable rate to a fixed interest rate|
You can find more information on the Federal Student Aid website on the pros and cons of loan consolidation.
If consolidation is a good option for you, you may qualify for a bonus from our partners below by using our links. Only new borrowers may qualify for a bonus once you complete the application and make your first payment.