Those four glorious years in college paint everything in such a pretty light… until graduation nears and students realize their college loan debt will soon need to be repaid. Thousands of dollars in debt build up quickly, with many students owing $20,000 or more by the time they leave their university. Sure, it’s all worth it for the wonderful memories, the lifelong friendships, and the top-notch education, but how in the world are we going to pay all this back?
Thankfully student loan consolidation offers a reasonable way to combine all your student loan debt into one payment with an interest rate that is also consolidated and fixed for the term of the loan. This can make things easier on a recent grad, who now only has to wrangle one student loan payment per month instead of several.
Students can pay back their consolidated loans over the course of up to 30 years, giving them a bit more breathing room than usual. Like all options in the financial world, student loan consolidation has both pros and cons. Students often will end up paying more in interest over the course of the loan, spending more out of pocket than they would with the individual loans. This may still be a good option for some grads, but it is important to closely examine your own personal student loans and repayment plan before deciding if consolidation is right for you.
For more information on student loan consolidation, check out Federal loan consolidation on the U.S. Department of Education’s website at www.loanconsolidation.ed.gov.