Is Student Loan Consolidation the Right Option for You?

Updated on April 13, 2020
Nicoartz profile image

I have done a lot of SEO content writing for websites; thus, I have done a ton of research about loans, credit cards, and consolidation.

Discovering the Potential of Consolidating Student Loans

You are about to graduate college and dive right into the workforce at full speed and never look back! Money will soon be flowing your way—so much, in fact, that you won't even know how to spend it. Life is going to be easier from here on out . . . until reality sets in, that is. The economy is up and down and job stability, growth, and income are often lacking.

Soon your mailbox will be home to student loan bills coming month after month without delay or regard for your current employment situation. Uncle Sam is coming. He lent you money and he wants it back NOW! Unfortunately, Uncle Sam is not someone you can negotiate with. The heavy hand of government is knocking and it's time to pay up.

Before you crawl under your covers and cower in the face of financial adversity, take a few moments to reflect on your options. Paying off that student loan may not be as difficult as you think!

When Student Loan Consolidation Makes Sense and When it Doesn't

Student loan consolidations are not for everyone. Each individual is looked at on a case-by-case basis. The viability of entering into a student loan consolidation will depend on a number of factors, including . . .

  • how long you want to hold your student loan debts,
  • how much consolidation will actually reduce your payments, and
  • your ability to find employment that pays consistently.

Consolidation can be a tremendous help and potentially save you hundreds each month, but you need to look at your current situation to figure out whether it will be beneficial in your situation. Let's take a look at some key figures on student loan consolidation savings to see just how much you could save each month.

How Much You Can Save By Consolidating Your Loans

Total Loan Amount
Your Monthly Payment
Consolidated Monthly Payment
Monthly Savings
Yearly Savings
Based on a Stafford loan interest rate of 6.5%

As you can see in the chart above, the amount saved can be quite dramatic when your student loans approach the $100k mark. Student loans equaling less than $10,000 do not qualify for loan consolidation. The savings would be minimal at best. Consolidation makes the most sense for anyone carrying very large student loan debt who needs assistance in easing the burden. If you fit the criteria, do yourself a huge favor and sign up for a student loan consolidation now! The process is simple and fast and you'll thank yourself for it every month until your loans are paid off.

The key to paying off debt is to play the market and know what you're up against. Reducing your high-interest debt through student loan consolidation is just the first step to ensuring your financial freedom and stability. It's up to you to make your payments on time and to treat the loan as seriously as possible. Your earlier loans and credit will affect you in the future. Just how it affects you depends on you. Don't let your student loans control your life. Instead, let your life control your student loans through student loan consolidation.

Effects of Student Loan Debt

An estimated 50% of all college graduates have taken out student loans. Student loans, like any debt, can have a significant influence on your credit scores, both positively and negatively depending on how the loan is maintained. One of the worst things to do is default on a student loan. Defaulting on your student loan will drive your credit score into the ground, forging a future of hardships and difficulties for you financially.

Rules of Thumb for Fighting Debt

There are several things you can do to reduce your debt burden and ensure your loans remain paid, even during times of financial struggle.

  • Never sign up for credit cards with high APR rates.
  • Do not take on any more loans while you still have your student loan.
  • Always try to put some money in the bank "for a rainy day," though sometimes that is easier said than done.

If you're one of the millions of Americans who are already caught in a cycle of debt, it may be a good time to consolidate your loans.

Get Out of High-Interest Debt

High-interest credit cards and bank loans are going to keep you in a cycle of debt that you'll never recover from. Get out of that debt now by considering a consolidation loan. With consolidation loans, you can roll all of those high-interest loans from multiple lenders into one lump-sum payment at a greatly reduced interest rate.

Think of the Savings

Imagine saving hundreds—perhaps thousands—each month and saving your credit score at the same time! Before you run out and consolidate your loans with the first lender you come across, take a step back and do some research. Not all lenders will treat you equally. Some lenders may have higher interest rates on their consolidation loans while others may offer strict re-payment terms.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2019 Jason Nicolosi


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    • Nicoartz profile imageAUTHOR

      Jason Nicolosi 

      6 months ago from AZ

      Thanks, Lora I appreciate that you not only take the time to read my articles, but you always leave thoughtful and relevant comments. I hope that this information can help people get a better understanding of these types of loans.

    • Lora Hollings profile image

      Lora Hollings 

      6 months ago

      Some very good advice here for college graduates who find themselves in just such a situation, Jason. I remember paying back my student loan and at that time, I didn't have much interest to pay back as I only had one small loan and I was fortunate enough to get a scholarship. But now, it is quite different especially for those going on to grad school. Thanks for sharing.

    • Nicoartz profile imageAUTHOR

      Jason Nicolosi 

      6 months ago from AZ

      I'm really glad you found the article informative Alyssa. Thanks so much for taking the time to read my articles and comment on them. I really appreciate it.

    • Alyssa Nichol profile image


      6 months ago from Ohio

      This was very informative and something I wish I would've seen about 15 years ago, ha! Great tips for college and high school students. Thank you for sharing!

    • Nicoartz profile imageAUTHOR

      Jason Nicolosi 

      8 months ago from AZ

      Iqra, that is very kind of you. Thanks for reading my articles and poems. I appreciate it.

    • Iqra431 profile image


      8 months ago from Pakistan

      again an interesting and useful article .... i encourage you to write more as your articles are quite helpful ....



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