Top 3 Reasons to Consolidate Student Loans

Making the decision to consolidate student loans can make your life easier. Not only do you save money, but you save yourself time as well. The process doesn’t take long, and there are several reasons you may want to consider this.

Why Should I Consolidate Student Loans?

Saves Money

The biggest reason for anyone to consolidate student loans is for money saving. If you have multiple loans and make payments each month, you have to split your money between the loans. This typically means a smaller amount is paid towards the principle of the loan. That can increase the amount you pay in interest over time. Consolidating the loans in to a single loan can save you money in interest and can often decrease your monthly payment amounts as well.

One Payment

Many people overlook the time involved with paying bills each month. When you consolidate student loans you take several loans and essentially convert them in to 1 payment. When you write your checks out every month you don’t have to worry about keeping track of all the loans, and just write a single check. The fewer bills you have to contend with, the more time you have for important aspects of life, such as family and friends.

No More Missed Payments

If you have multiple loans to keep track of, it’s very easy to miss one every now and then. Even just missing one can cause your interest rate to jump. This not only looks bad on your credit, it will mean more money you have to pay towards the loan. With a consolidation you eliminate the mess that having multiple payments can create. You simply make a single payment every month. Most financial institutions will also allow you to set up a direct debit program so the payments come out of your checking account at the same time every month. Using this when you consolidate student loans will almost guarantee you never overlook a payment.