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Consolidating Student Loans


Many college grads with student debt have multiple loans that can be frustrating to deal with. Student loan consolidation takes all your loans and creates one new loan. Your original loans are actually paid off and a new loan is created with new terms.

Borrowers needing a lower monthly payment or facing several loans from multiple loan servicers may consider consolidation to simplify repayment.

There are a few advantages and disadvantages to consider before consolidating your student loans.

Here are the pros of consolidation:

  • A new fixed interest rate
  • Lower monthly payments
  • And only one monthly payment

Now here are the cons of consolidation:

  • Loss of certain benefits tied to Federal student loans
  • You will most likely pay more interest
  • And you will have a longer repayment period

Most Federal student loans, which are backed by the government, can be consolidated into a Direct Consolidation loan. Private student loans come directly from a private lending institution and can also be consolidated. However, Federal and private loans cannot be combined into one loan together.

If you are struggling with student loan debt repayment options, ACCC can help sort out the confusion.

Visit to learn more student loan repayment options.





American Consumer Credit Counseling (ACCC) provides non-profit credit counseling, debt reduction programs and debt relief services to help consumers nationwide figure out how to pay down debt and how to get out of debt quickly. Our professional credit counselors provide free credit counseling to help individuals and families find the right debt solutions to help with credit card debt and avoid debt in the future. Our debt management programs provide help with debts by consolidating payments on credit card debt and other unsecured loans, with credit card negotiation services to reduce credit card debt interest rates and finance charges, helping consumers to pay off debt more quickly.

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