Connie J. Schlosberg


Student loan debt has reached an alarming $1.5 trillion in this country, making it the center of political debates. While politicians debate on the future of student debt, you are in over your head wondering how you are going to get out this mess. A simple solution is to consolidate your student loans. Let’s discuss the advantages and disadvantages of student debt consolidation. Read on to learn more about student loan consolidation.

What is student loan consolidation?


Here are three practical advantages to consolidating your student loans:

1. Keep track of one payment, one bill, and one loan provider

Keeping track of one loan provider and one monthly payment will be much easier than managing multiple loans with different loan servicing companies. After all, how many times did you forget to pay a bill because you couldn’t keep track of your student loans?

2. Lower your monthly payments

If you can extend the number of months on your loan, you can lower monthly payments. This lower monthly payment will help you pay down any other debt you have – not to mention paying your rent and grocery bill.

3. Change from a variable to a fixed interest rate

Consolidating student loans can change your interest rate from variable to fixed. Variable interest rates are not helpful when you are trying to manage debt. Your student loan payment fluctuates, and the increase in payment can cut into your budget. If you have variable-rate student loans, consider a student consolidation loan that has a fixed rate.

Tip! Try this free debt analyzer tool to see where you stand financially.


As perfect as a student consolidation loan may seem, it may not be right for you. Before you apply, you need to understand why you would like to consolidate and the potential downsides of student loan consolidation. Here are two potential disadvantages to consolidation:

1. Longer repayment time

If your new student loan extends your repayment terms, you will pay more interest over a longer period. Your goal for financial freedom will take longer to realize. This may prevent you from purchasing a home if you don’t already own one.

2. Outstanding interest will capitalize

When you consolidate your student loan, any outstanding interest may be added to your principal balance. Your total outstanding student loan balance will increase, which means more interest will accrue on your loans each day.


If you have decided it’s time to consolidate and fix your student debt problem, DebtMD has partnered with several financial companies who specialize in student loan consolidation. Even if you are on the fence, you can talk to an advisor who can help you decide if consolidation is right for you.

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