Consolidating all school loans

If you are extending your repayment term, this could result in an increase in your total cost over the life of the loan.

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However, most borrowers will find that all of their student loans are at one student loan servicer.

If this is the case, it's easy to manage all of your student loans on one dashboard, and one monthly statement.

And here's the kicker - for most student loan borrowers, consolidation isn't even necessary.

So, before you increase your risk of mistakes, let's dive in and see why most borrowers shouldn't consolidate their student loans.

We recommend you compare your current loan terms against the consolidation loan terms.

For example, you may not want to include loans with a lower interest rate than the consolidation loan.So, if you consolidate, the old loans are gone (along with their payment history).If you're going down the path to forgiveness, don't consolidate unless you have to.It's the process of combining multiple loans into a single new consolidation loan. Student loan consolidation is one of the leading causes of borrower issues.If you refinance your student loans, you now have a private student loan that does not have access to these programs.When You Should Never Consolidate There are two times you should NEVER consolidate: If you consolidate a Parent PLUS Loan in with other student loans, you suddenly lose access to many income-driven repayment plans. Also, if you've already been working towards loan forgiveness (whether via Public Service Loan Forgiveness or through your repayment plan), if you consolidate your student loans, it resets the clock.

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