Consolidating your student loans involves combining student loans from a range of different loan providers into a single loan from one financial institution.
While student loan consolidation has its perks, you should also be aware of the disadvantages before you change your student loan structure.
These benefits could be lost if you consolidate your student loans.With several different student loans, you have several different interest rates. When you consolidate your student loans, you’ll have a new interest rate.Since you can only consolidate your student loans once, your new interest rate is locked in, even if interest rates fall.If you’re struggling under the pressure of your student debt, you’re not alone.
According to the Institute for College Access & Success, 69 percent of seniors who graduated from public and nonprofit colleges in 2014 had student loan debt — to the tune of an average of ,950.
Often loan service providers encourage students to extend their repayment terms.