Benefits of Consolidation

Too Many Separate Loan Bills?

If you have taken out more than one student loan or parent loan, it can be very difficult paying these individual monthly bills. If you are having a hard time making ends meet while paying these separate bills, consolidating your student loans could be a responsible decision.

Benefits of Consolidation

Loan consolidation simplifies your life by giving you just one loan bill to pay. But it does more than that.


  • Consolidation drastically lowers your monthly payment.
  • Consolidation enables you to save now for other investments in your future and family life, such as a house, starting a new business or starting a family.
  • Initially, consolidating your student loans improves your credit score because you have paid off a number of loans in their entirety and you will not have as many creditors.
  • Prepayment is not a problem, so when you have more money, you can put as much towards paying off the loan as you want. By doing this, you avoid the main drawback of consolidation loans – they can lower your monthly payment by extending the length of the loan, so if you take the full term of the new loan to repay the debt, you will pay much more in interest than you would have originally. By prepaying as soon as you have met other financial goals, you can realize the benefits of loans consolidation without the drawback.


If repaying multiple individual student loans could put your financial future in jeopardy, loan consolidation is a useful tool for getting back control.