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Completing graduation will mean the students who have taken student loans for availing their education program have now to repay it back with interest. Once the grace period ends for the loan, the student is sent his first repayment invoice. They are to make payments until the loan tenure is completed. But with time, there are many who might face the cash flow crunch due to various reasons. But the loans are to be paid on time, every month, failing which the person will become a defaulter, witness fall in credit ratings and face heavy fines and penalties and even increase in the interest rate.

consolidate my student loans

Multiple student loans

Those who have taken more than single student loans are sure to feel it a burden. This will actually mean having to pay more than a single payment every month. Such loans may come with different rates of interest, with few being variable rate loans and others fixed. The loans might also have different repayment schedules or terms.

How do I consolidate my student loans?

Those having trouble to manage their multiple loan payments or are not simply interested to take on the pressure that comes with multiple outstanding payments may turn towards consolidating their existing loans.

Through student loan consolidation, it becomes possible to pay off all the existing loans under the new loan that is offered at a fixed rate of interest. The student also has the option to have his repayment schedule spread out with more time, like 20 to 30 years. This automatically reduces the monthly payment amount. However, during long tenure, it increases the loan’s total cost.

In case, the person holds currently federal student loans like HEAL, PLUS and Direct Loans, then best option to avail is federal loan consolidation. For loans issued by private lenders, private loan consolidation is available. Checking out the different websites like can help the person to know how I consolidate my student loans.

How do I consolidate my student loans - Steps to follow

The following steps can help the person to get the best possible rates on the student consolidation loan.

  • Calculate existing weighted average rate of interest on all loans: It will be useful to start calculating the existing rate of interest and know if any offers made are worth availing or not. It is likely to be the interest rate weighted average of each current loan that is possessed.
  • Research credit score: If the desire is to avail private student consolidation loan, then it will be useful to check out the credit score withal the three credit bureaus, as scores vary. This is because the new rate of interest is likely to be based upon individual credit in part.
  • Research and then apply: One should not accept the very first offer that is made. In order to get the lowest interest rate possible, adequate research is to be done and at least five consolidation lender quotes are to be availed.

This way, lower interest rates can be availed on the new student loan consolidation program.