0 Advantages and Disadvantages of Student Loan Consolidation

Are you presently opposite problems on how to pay the different student loans you have incurred while silent in college?

As new graduates, it is not surprising that you are presently in this quandary because of the different financial obligations you have taken ahead yourself while earning a higher form of education. A college education is fairly costly these days and the only way for one to manage is to take advantage of the different student loans available. The two types of federal student loans are the subsidized and the non-subsidized loan. Other than this, students can also take advantage of private loans presented by banks and other private lending institutions. If you have taken several loans the full time you were in college, it is predictable by the time you finish school you will be profound in student debts. This is the cause why some people would advise you to consolidate your loans as a solution to your problems. However before you can make a decision if this is the best course to take, it is best to study the advantages and disadvantages of consolidating student loans.

1. Consolidating all your numerous loans into one will take away the weight of having to pay numerous bills. You only have to focus on one loan, one interest rate and one bill every month. 

2. You can select for a longer repayment stage. Typically a student debt is payable within 10 years but with student loan consolidation, it can be extensive up to thirty years.

3. With a longer repayment period, it also means paying a smaller monthly payment. This would offer you further spending cash in your pocket. 

4. There are no other extra fees charged when you consolidate your loans.

5. There is no punishment if you choose to pay off your debt early.

6. No credit check is necessary when you apply for a student loan consolidation.


1. If you select a longer repayment stage, the total amount you will be paying in the long run will end up a lot more than the unusual loan amount. 

2. Once you consolidate your loans, borrower's benefits like interest rates discounts and rebates will no longer be available.

3. If you choose to consolidate your loans within the 6-months elegance time, your loan payment will start instantly.

4. It may be probable that your consolidation interest rate will appear higher than the existing rate of your current individual loans. 

5. You can consolidate your various loans only once.

It is very hard focusing on your career if you are loaded with so much financial problems. Knowing the dissimilar advantages and disadvantages of student loan consolidation is very significant as it can help you decide what the next step to take is.


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