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.
My monthly payments, all added together, ended up being right around 0 a month. Consolidation has worked well for me, and it can work well for many students, as long as you understand the risks.
The average college grad leaves school with ,000 worth of debt.
But if you switched majors, transferred colleges, or went on to graduate school, you may be among the 19% that owe ,000 and above, or the 5.6% who owe more than 0,000.
Your grace period on some loans could end prematurely, or you may end up consolidating at the wrong time – too early or too late.
Not all student loan debts can be consolidated, although most federal loans can.
When I finished my graduate degree, I had five different student loans for attendance at two different universities, with various interest rates.