Student Loans for Consolidation: 2 Ways

If you have multiple student loans, you may be considering consolidating them into one loan. Student loan consolidation can be a good option to simplify your payments and potentially lower your interest rate.

In today’s article, I will guide you on how to get student loan for consolidation, benefits of student loans for consolidation, what are the drawbacks of student loan consolidation and also how to decide if student loan consolidation is right for you.

What Is Student Loan Consolidation?

Student loan consolidation is the process of combining multiple student loans into one new loan. You can consolidate federal student loans, private student loans, or both.

What are the Benefits of Consolidating Student Loans?

There are several benefits to consolidating student loans, including:

  • Simplified repayment: Consolidating your student loans into one loan can make it easier to manage your repayments. You’ll only have one monthly payment to make, instead of multiple payments to different lenders.
  • Lower interest rate: If you have good credit, you may be able to qualify for a lower interest rate on a consolidated loan. This can save you money over the life of the loan.
  • Lower monthly payments: Consolidating your student loans may also lower your monthly payments. This is because you’ll be able to spread out the repayment of your loans over a longer period of time.

What are the Drawbacks of Consolidating Student Loans?

There are also a few drawbacks to consolidating student loans, including:

  • Capitalized interest: When you consolidate your student loans, your lender will capitalize any unpaid interest. This means that the unpaid interest will be added to the principal of your new loan. This can increase the total amount of money you owe.
  • Loss of certain benefits: If you have federal student loans, you may lose certain benefits by consolidating them. For example, you may lose the ability to qualify for income-driven repayment plans and public service loan forgiveness.

How to Decide If Student Loan Consolidation Is Right for You

Whether or not student loan consolidation is right for you depends on your individual circumstances. Consider the following factors when making your decision:

  • Your interest rates: If you have high interest rates on your student loans, consolidating them into a new loan with a lower interest rate could save you money over the life of the loan.
  • Your monthly payments: If you’re struggling to make your monthly student loan payments, consolidating your loans into a new loan with a lower monthly payment could be a good option for you.
  • Your repayment goals: If you’re planning to qualify for income-driven repayment plans or public service loan forgiveness, consolidating your federal student loans could make it more difficult to do so.

What Happens If You Miss a Student Loan Payment

Missing a student loan payment can have serious consequences. Here’s a timeline of what to expect:

After 30 days: Your loan servicer will report the missed payment to the credit bureaus. This will damage your credit score, making it more difficult to qualify for loans and credit cards in the future.

After 90 days: Your loan will be considered delinquent. You may be charged late fees and your interest rate may increase. You may also lose eligibility for certain benefits, such as income-driven repayment plans and loan forgiveness programs.

After 270 days: Your loan will be considered in default. Your loan servicer may take more aggressive collection actions, such as wage garnishment and tax refund offset. You may also be sued by the government.

Student Loans for Consolidation

How to consolidate your student loans

To consolidate your federal student loans:

you can visit the Federal Student Aid website and submit a consolidation application. You can also consolidate your federal student loans over the phone by calling the Department of Education.

To consolidate private student loans, you’ll need to contact your lenders directly:

Each lender has its own consolidation process, so it’s important to compare offers from different lenders before you choose a loan.


Student loan consolidation can be a good option for borrowers with multiple student loans who want to simplify their repayment process, get a lower interest rate, or lower their monthly payments. However, it’s important to understand the pros and cons of student loan consolidation before you make a decision.

If you’re considering consolidating your student loans, be sure to compare offers from multiple lenders and choose the option that’s best for your individual.


What Types of Student Loans Can be Consolidated?

You can consolidate federal student loans, private student loans, or both.

What are the Requirements for Consolidating Student Loans?

To consolidate student loans, you must generally meet the following requirements:

1. You must have a valid driver’s license or state ID.

2. You must be a U.S. citizen or permanent resident.

3. You must be in good standing with your current student loans. This means that you must not be in default on any of your loans.

How Much Does It Cost to Consolidate Student Loans?

There is no fee to consolidate federal student loans. However, private lenders may charge a fee for consolidating student loans.

How do I cancel my student loans?

After your loan is disbursed, you can cancel all or part of it by notifying your school within certain timeframes that vary depending on your school’s processes (your school will tell you the specific cancellation timeframe that applies to you), or by returning some or all of the loan money to your servicer.

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