QandAs: Loans

What are the Benefits to Student Loan Consolidation?

Answer:
The main benefit for consolidating student

loans is to greatly reduce your monthly student loan payment. A student loan consolidation lets you combine all your school loans so that you’ll only have one loan.

For some students, a loan consolidation often saves them hundreds of dollars each month. Of course, it’s important that when you consolidate your student loans you do not combine private and federal loans. Consolidate federal loans first, before you consolidate any private student loan debt. Interest rates are usually lower for federal student loans; however, these rates change on July 1 of each year. For private loans, consider refinancing if you’ll be able to obtain a lesser interest rate.

Whether you have one loan, or several, there are several options to assist you in paying back your student loan debt.


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