Simply put, this is the process of combining your multiple student loans into a single, bigger loan, possibly with a new lender.
You’ll no longer owe the original loans, and since this consolidated loan is new, it will come with a new interest rate, a new payment policy, and new terms and conditions.
It can also improve your short-term quality of life considerably, as the calls and letters stop.
We then detail a step-by-step guide to using and choosing consolidation loans.
As you weigh the pros and cons, keep in mind that timing is critical.
With just a few exceptions, you get only one chance to consolidate with the government loan programs.
You can consolidate all, just some, or even just one of your student loans.
Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.