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ACCC Explains How to Utilize Student Loan Consolidation


ACCC explains the pros and cons of considering student loan consolidation   Student Loan Consolidation

(Boston, MA) – June 20, 2018 – After graduation, many people find themselves with multiple federal student loans to pay off. Some graduates may consider consolidation, which combines the existing debt into a single loan. This can make repayment easier, as borrowers only have to make a single payment, rather than a payment on each type of loan.

“Once students graduate and leave college, the daunting task of paying off student loans begins,” said Steve Trumble, President, and CEO of American Consumer Credit Counseling. “While consolidating student loans can make the repayment process more manageable by combining the existing debt into a single loan, it’s important that borrowers understand the pros and cons before making a decision.” 

According to Student Loan Hero, in 2017 the average student loan debt was $39,400, a six percent increase from 2016. A total of 44.2 million Americans have student loan debt in the U.S., adding up to about $1.48 trillion. The average student loan monthly payment is $351 and the delinquency rate is 11 percent. 

ACCC provides the pros and cons of student loan consolidation.


Student loan consolidation can lower your monthly payments by increasing the amount of time you have to pay back the loan, while also giving you access to other student loan repayment options. For those with variable interest rates, consolidating to a Direct Consolidation Loan will convert the interest to a fixed interest rate for the life of the loan, based on the weighted average of the interest rates on the consolidated loans. This fixed rate can provide stability and a lower monthly payment.

Debt consolidation companies argue that borrowing money at a low interest rate to pay off loans or credit cards at a higher interest rate can save you money, or help you pay off the debt sooner. Other pros include having fewer payments to make each month, and less likelihood that you'll be late on payments.


However, there are cons to consolidation. If your previous loans had any benefits, like interest rate discounts, rebates, or forgiveness, you may lose those benefits in the loan consolidation process. Consolidated loans can’t be unconsolidated because, after consolidation, the individual loans are considered “paid off” and no longer exist.

Consolidation can take place any time after the student has left school, graduated, or dropped below half-time enrollment. However, you should not consolidate your loans without carefully examining the pros and cons listed above. Depending on the terms of your new loan, it's possible you can actually end up paying more in interest over the life of the loan, or that you'll end up deeper in debt.

ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:

  • For credit counseling, and student loan counseling call 800-769-3571
  • For bankruptcy counseling, call 866-826-6924
  • For housing counseling, call 866-826-7180
  • Or visit us online at

About American Consumer Credit Counseling

American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling and financial education concerning debt solutions. In order to help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loan assistance, youth and money, homeownership, identity theft,  senior living and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to or visit

American Consumer Credit Counseling (ACCC) is a non-profit debt relief agency offering consolidated credit counseling and consumer debt solutions. If you have debt to consolidate, we can help you consolidate credit without taking a loan or paying high fees like some debt management companies charge. A fair, effective debt reduction service, our debt management program simplifies your payment responsibilities and often results in reduced interest rates from your creditors. As a leading national debt consolidation firm, ACCC has also been approved by the Department of Justice to provide credit counseling for bankruptcy both the pre-bankruptcy credit counseling certificate and the post-bankruptcy debtor education. Homepage Footer: American Consumer Credit Counseling (ACCC) is a non-profit credit counseling agency and debt consolidation company that provides help to anyone who is asking, "How do I get out of debt?" Our services include credit counseling, financial education, debt consolidation and debt reduction services for consumers nationwide. Our certified credit counselors have helped thousands of individuals and families find debt relief through debt management plans that consolidate debts and debt payments to pay off credit cards and eliminate debt. We also provide bankruptcy counseling and bankruptcy debtor education services, including pre bankruptcy credit counseling for a bankruptcy certificate.

American Consumer Credit Counseling - Consolidate Debts - Better Business Bureau American Consumer Credit Counseling - Consolidate Debts - Mass Housing Approved National Industry Standards for Homeownership Education and Counseling American Consumer Credit Counseling - Consolidate Debts  - Council on Accreditation American Consumer Credit Counseling - Consolidate Debts  - NFCC Member