Should I consolidate my student loans?

Consolidate your loans and you will have just one monthly payment to keep track of — but your interest rate may increase

Hands holding a clipboard with a blue piece of paper on it that reads "student loan consolidation"
Loan consolidation is available for federal student loans, but not private
(Image credit: designer491 / Getty Images)

Student loan consolidation can make repaying your student loans a little simpler. The process, available only for federal student loans, allows you to roll your loans over into one new loan, giving you just one monthly payment to stay on top of, as opposed to multiple.

Unlike the similar but distinct process of student loan refinancing, which is possible to do with both federal and private student loans, consolidation is not a path toward lowering your interest rate. In fact, it may even lead to you paying more in interest overall. That is why, before you do it, it is crucial to weigh the pros and cons.

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Becca Stanek, The Week US

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.