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Student Loan Consolidation – Put All Your Eggs in One Basket

Student load consolidation is a method that should always be considered when you have more than one student load. Unlike the saying ‘don’t put all your eggs into one basket’, it can certainly be beneficial for you to do this.

Due to the fact that we have many expenses that can arise due to our studies then it is likely that most people will need to take out additional finance to help them through the tough times.

The simple way to look at it is that if you have multiple loans, then you are paying multiple fees and multiple interest rates, so it only makes sense to consider putting everything into one basket so you will only have one lot of expenses.

Loan Consolidation

Student Loan Consolidation is when we combine all our loans into one new loan with only one monthly repayment. Your previous student loan balances are paid out by the new loan.

The interest rate you will pay will (more than likely) be an average of the overall rates that your previous loans were charged at.

One point to consider is that it may be possible to combine your loans with that of your partner or spouse. Normally though this is not a recommended practice because if you ever need to apply for a loan deferment then you will both need to meet the loan criteria. Loan repayments will still have to be met even if you divorce.

Most loans, can be consolidated. Most financial institutions can offer loan consolidation. You may also be able to consider going to the Department of Education. Another thing to consider is that students as well as parents can use loan consolidation.


  1. In some circumstances, you can help to dictate the terms of your loan structure.
  2. Consolidation loans normally have lower monthly re-payments.
  3. You may have the option of changing your existing variable interest rate to an even lower rate that is fixed.
  4. It may be possible to also extend the term of the loan from 10 years to 25 – 30 years.
  5. You may also be eligible for tax deductions.
  6. Normally there are no re-payment penalties, which means you can make more payments than is in the schedule.


  1. When you lower your loan payments then you will have to extend your re-payment term and therefore increasing the amount of interest you will pay.
  2. Keep in mind that as soon as you have consolidated all of your loans, you may not be able to ‘un-do’ them.


Always keep in mind that there are always specific criteria that you will need to meet before the consolidation process can be started.

There are also minimum limits that normally are in place when you look at consolidating, usually the total amount you are needing to consolidate must be over $10,000.

You will also have to still be in your grace period or you have already started your re-payment plan and have taken out no previous consolidation loans.


  1. Search for a lending organization in your area that has the best offer.
  2. Use the power of the web to find a list of approved organizations.
  3. Always talk to your student councilors because they will have current information about what is available and who you can see. They can also give you some idea of the costs you may be looking at.


Looking forward now, it might also be worth your while to consider setting up some sort of passive income stream that can help you in the future with your loan re-payments. There are various ways you can achieve this that will also not cost you any money.

We hope that you have more information now about student loan consolidation to help you make a more informed choice.

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