Pros and Cons of Consolidating Student Loans

by DeLadurantey Law Office, LLC on July 15, 2014

student debtIf you have multiple federal student loans, it can be a hassle to keep up with them. Differing interest rates, payment deadlines and other variables can make it difficult to ensure you are maintaining your repayment plan accurately. As a result, you may be considering consolidating your student loans. However, it is important for you to understand the pros and cons of loan consolidation before taking this step.

It is important to note that this blog focuses on federal student loans. If you have private student loans, you will need to review your loan documentation and talk with your lender to determine your repayment options. To find out if your student loans are federal, you can review your loan report at

The primary benefit of consolidating loans is the convenience of having a single monthly payment and only one loan servicer to deal with. Other benefits include the possibility of you gaining more payment options, a lower interest rate and a lower monthly payment. Many consolidations result in the loan repayment term being extended with a fixed interest rate.

The primary disadvantage of consolidating your student loans is that it may result in you paying more overall. If your repayment term is extended, you pay more in interest. Additionally, it is possible interest rates will fall after you consolidate your loans and you are locked-in at a higher rate. Finally, you must also be careful that your consolidation will not cause you to lose any options or advantages offered by your individual loans.

If you are considering consolidating your student loans, let us help. We can help you investigate the loan balances, interest rates and repayment terms to determine whether consolidation is the most beneficial option for you.

If you are considering filing for bankruptcy protection or you need assistance with your student loans, call DeLadurantey Law Office, LLC, at (414) 377-0518. We believe that each client should receive the individual attention necessary to reach their financial goals. Recognizing the needs of working clients, we maintain a flexible schedule and offer evening appointments. Initial consultations are always free, and phone inquiries are always welcomed. Find us on the Internet and on Facebook.

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