Should You Really Consolidate Student Loans?

If you’re pondering whether or not to consolidate student loans, consider this; all college loans have unique attributes, and not all may be perfectly suited for student loan consolidation.

PLUS Loan – Good Choice for Student Loan Consolidation : Like many college loans, the PLUS loan (Parent Loan for Undergraduate Students) is a type of federal loan with a variable interest rate. The interest rates on PLUS loans are generally higher than other types of college loans so when interest rates increase, PLUS loans can be greatly affected. Since college loans are consolidated by social security number, parents should apply separately for PLUS loan consolidation.

Perkins Loan – Consider before refinancing : The Perkins loan is a fixed rate loan and has some unique benefits that can be lost with a student loan consolidation.

Stafford Loans – Good Choice for Student Loan Consolidation : Stafford loans have a variable interest rate like the PLUS loan, making refinancing a smart choice.

Health Professions Student Loan (HPSL) – Consider before refinancing : The HPSL loan for medical professionals is a fixed rate loan like the Perkins Loan.

Direct Loans – Good Choice for Student Loan Consolidation : The two most popular types of loans are the Stafford Loan and the PLUS Loan which is the reason it’s so popular to consolidate student loans. Student loans are not all created equal.

When is the Best Time to Consolidate Student Loans?

There is no better time than the present to consolidate student loans. Consolidating or refinancing student loans can easily save borrowers up to 52% on their current loan payments so most people are anxious to consolidate as soon as possible.

Many students also take additional loans throughout their college years such as Perkins loans and various industry specific loans, further increasing the benefits of a single low interest loan payment.

By consolidating your loans, you’ll take out one fixed rate loan to pay off all of the other unpredictable variable interest rate loans. The repayment period of a consolidated loan is longer, meaning much lower monthly payments. Refinancing student loans during this grace period means locking in to 0.6% lower interest rates than are available after the grace period has ended. Any time is a good time for refinancing student loans. Learn more our best additional knowledge you may interested in such as department of education student loans, subsidized loans, more for no credit check student loans and how to get international student loans / student loans guaranteed. By Chris Studer

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