| When interest rates on student loans rise, many | | | | On unconsolidated student loans, the government |
| college students begin to consider student loan | | | | pays the interest on your loans for six months after |
| consolidation. There are both benefits and | | | | you graduate. This means that you wouldn't be |
| disadvantages to student loan consolidation. This | | | | responsible for a payment during this time. However, |
| article explains the pros and cons of consolidating | | | | consolidating your student loans forfeits this grace |
| student loans. | | | | period. You will be responsible for payments on your |
| Pros | | | | loans immediately after graduation. |
| Consolidating your student loans locks you in at the | | | | If you consolidate, you are locked in at the current |
| current interest rate. This means that, if interest | | | | rate for the lifetime of the loan. If you don't |
| rates rise, you will continue to be responsible only for | | | | consolidate, your interest rate will fluctuate depending |
| your original fixed interest rate. Unconsolidated | | | | on economical conditions. It is possible that interest |
| student loans have variable interest rates that | | | | rates will drop lower than the current rate in the |
| fluctuate from year to year. | | | | future. Visit for various student loan consolidation |
| Consolidation loans generally have longer repayment | | | | services. |
| periods. Unconsolidated student loans have a | | | | If you consolidate under a longer repayment period |
| maximum repayment period of 10 years. | | | | and make only the minimum monthly payments, you |
| Consolidation loans may have repayment periods up | | | | will pay more interest than you would on in a shorter |
| to 30 years. This means that monthly payments may | | | | repayment plan. This could cost you thousands of |
| be lower on consolidated loans. | | | | dollars over the lifetime of the loan. |
| Cons | | | | |