3 Reasons to Consolidate My Student Loans

“I want to consolidate my student loans.” This is something that many people who have had to borrow money for an education opt to do after they’ve been paying on the loans for a while. It’s very common, and any lender can handle the consolidation for you. So if you decide to look into consolidation there are some very good reasons for doing so.

How Do I Consolidate My Student Loans?

#1: One loan makes it easier to manage.

When you look into how to “consolidate my student loans” you’ll find that it’s incredibly convenient to have only one loan to repay instead of two or more. This is a top reason people consolidate all kinds of loans and debts. People will several credit card debts often consolidate them into one general loan payment because it’s easier to keep track of one debt than several.

For people will many student loans, consolidation can make keeping track and keeping up with payments easier. If you have both federal and private education loans, however, you’ll have at minimum two consolidation loans as federal loans have to be consolidation separately from private loans. Two loans are still better than several, so it’s often a good option when you have both kinds of loans.

#2: You can get a lower interest rate.

When you decide to “consolidate my student loans” you can gather all those loans into one and get a lower interest rate on that loan. This can save you money over time and help make repaying the loan more manageable. Federal student loans qualify for lower interest already, but getting an ever better rate with a consolidation is possible. That rate can be locked in so that if rates rise, your rate will never go up. The opposite holds true, though. If rates drop, you still pay the higher rate you renegotiated for. But you’ll never have to worry about fluctuating interest rates making your payment go up.

#3: You can get a lower monthly payment.

When you decide to consolidate, the standard repayment plan for the amount left on your loans is 10 years. Stretching the payments out over that length of time may lower your payments if you’ve paid most of your loans off. You can also decide to extend the loan to up to 30 years for the lowest payments. When you decide “I want to consolidate my student loans” that way, you will pay more in interest over time.