Student Loan Consolidation Program

What is Student Loan Consolidation Program:

The student loan consolidation program allows borrowers to combine outstanding student loans.

For example, if a student has three separate government student loans, the student can consolidate them into one single loan. Technically, all three of those loans will be considered paid in full and a new loan will be started in their place.

How it helps

Student Loan Consolidation Program:

Consolidating loans through the student loan consolidation program is beneficial in three ways. First, it's more convenient. Students with multiple loans also have to make multiple payments every month. That means there's more paperwork and due dates to keep track of and a better chance that one of them won't get paid. With consolidation, there's only one loan payment due every month instead of two, three, etc. That's usually easier for most students and graduates to manage.

Another benefit of the student loan consolidation program is that it may save students money.
For example,
A student with three outstanding loans may be required to make $150 payments each month to all three lenders. That's a total of $450 per month.
After consolidation, only one payment is required and that payment is usually much less than the combined payments from all of the loans.
That can be a huge benefit for students who are just getting started in their careers and who don't have the income necessary to cover large loan expenses right away.