Consolidating student loans pros and cons

You may be able to extend your repayment terms, pay a lower average interest rate, reduce your monthly payment amount, fix your interest rate or simply benefit from having a singular, simplified and streamlined monthly payment amount.However, loan consolidation is not always the answer.

On top of that, most federal student loans have 10-year repayment terms, starting from six months after you graduate from college.

One of the myths of consolidation is that it makes your debt less expensive by lowering your interest rate.

Historically, that may have been accurate, since consolidation was often used as a way to lock in a low interest rate on variable-rate loans, says financial aid expert Mark Kantrowitz.

Once you finish college, you are likely to look at all of your student loan payments and sigh: How are you supposed to keep all of them straight? This is when many people start weighing the pros and cons of consolidating student loans.

Among the inconveniences of student loans is that each loan that you receive for each school year is often considered a different loan — and it has to be repaid separately, with its own interest rate.

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