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Should I Consolidate My Student Loans In 2022?

Should you Consolidate My Student Loans In 2022? Consolidating student loans might make payments simpler, but it may also eliminate certain benefits.

The objective of student loan consolidation is to combine all of your various student loan payments into a single consolidated payment.

In this article, we’ll discuss whether you should consolidate your student loans, pros and cons of consolidation, and best practices.

What Is Student Loan Debt Consolidation?

Student loan consolidation is the process of combining several student loans into one.

When you combine multiple student loans into one, their interest rates will be averaged to produce a single rate.

It takes less than an hour to complete the loan consolidation procedure, and there is no cost to combine the federal student loans into a direct loan.

Borrowers who want to combine their federal student loans and those who have outstanding FFEL or Perkins loans but do not wish to participate in the Limited PSLF Waiver should consider consolidating their loans.

Students who are eligible to consolidate after they graduate, leave school, or drop below half-time enrollment.

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Pros and Cons of Student Loan Consolidation

4 Pros of consolidating student loan debts:

  • There’s no need to juggle between different loan servicers when students consolidate their student loans. A single monthly bill will be sent and it becomes easier than ever before for paying back what is owed!
  • Lower your monthly payment by giving you up too 30 years (or more) so that the interest on those loans won’t be hovering over your head anymore.
  • Consolidating loans can give you access to programs such as income-driven repayment plans and public service loan forgiveness (PSLF).
  • You’ll get rid of all your variable-rate loans, and replace them with a fixed rate one.

4 Cons of consolidating student loan debts:

  • The more loans you have, the harder it is to manage them. This can lead not only in higher interest payments but also longer repayment periods for each loan because of consolidation
  • Interest on your loans will continue to accrue while you’re consolidating, but there’s no need for alarm. This means that if the original interest rate was higher than what is currently being offered by a lender or they have an especially competitive offer in place – it might make sense not only financially now since overall costs may go down with combined balances compared against individual ones over time!
  • When you consolidate your loans, there is always the risk that certain benefits associated with one loan might be lost. For example: interest rate discounts and principal rebates may no longer apply to new debts.
  • If you’re currently paying off loans under an income-driven repayment plan, or if those payments are qualifying for Public Service Loan Forgiveness and PSLF – then consolidating your current debt will cause them to count towards lessening that forgiveness amount.

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Consolidating Student Loan Process

Before deciding to consolidate your student loans, you’ll need:

  • Your personal Information (Permanent address, mail address, mobile phone number, best time to reach).
  • Financial Information.
  • Verified FSA ID (If you have federal student loans).


  • Submit an application online or via email. Printable applications may be downloaded and submitted by mail.
  • Then the consolidation servicer you choose will oversee all of the procedures for merging your qualified loans after you submit your application electronically or by submitting a paper application.

Keep in mind: You must continue to make payments on the loans you want to combine until your new consolidation loan servicer tells you they have been paid off if they are in deferment, forbearance, or grace period.

Should I Consolidate My Student Loans?

You should consolidate your student loans only if:

  • Consolidating your debts won’t cost you anything.
  • A fixed rate of interest is provided instead of a fluctuating one.
  • The new interest rate on your loan is lower than the current one.
  • You don’t commit to a longer repayment term.
  • You don’t become so relieved at the prospect of a single payment that you lose your urge to pay off your debt quickly!

If you’re drowning in monthly student loan payments and thinking about student loan consolidation, pay close attention.

Consolidating your debts lowers your monthly payments, which can make it easier to pay back the loan. The more payments you make over time, the less money you spend in the long run.

Even if you’re going to consolidate, don’t back off the gas. Not even for a second.

Get laser-focused on saving money and paying off your student debt as soon as you can.

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6 Tips on Maximizing the Student Loan Debt Consolidation Experience

  1. Consider getting the best plan for you and your family. There are several repayment options, including income-driven plans that adjust based on what’s happening with money in order to keep it fair no matter how much or little there might be at any given time!
  2. If you are struggling to make your monthly payment on time, consider using deferment or forbearance as options for short-term relief. These can be great ways of getting quick wins that could ultimately save more in the long run without harming their credit scores too greatly.
  3. Loans that have been consolidated are permanently joined into a direct consolidation loan and cannot be separated. The loans that were combined are settled, and they no longer exist.
  4. Here’s a read-only version of the entire form, which you’ll submit online.
  5. You don’t want to lose the advantages that come with your existing loans if you combine them, and you’re working toward those goals. You should not include any of your eligible loans in your new direct consolidation loan. Simply you do not have to combine all of your eligible debts when consolidating your student loans.
  6. Repaying a Direct Consolidation Loan begins 60 days after the final payment is received. When your first payment is due, the loan servicer will notify you.

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2 Biggest Mistakes Borrowers Make With Student Loan Debt Consolidation

  1. Choosing the wrong repayment plan: Students frequently choose the payment plan that offers them the most money up front rather than the one with the lowest monthly cost.
  2. Refinancing to consolidate the federal student loans into a private loan: Before you give up the advantages of federal student loans, carefully review the conditions of a private student loan.

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Frequently Asked Questions