Definition
The process of combining multiple student loans into one, simplifying payments and sometimes lowering the overall interest rate.
What to consider
- Simplify your payments by combining multiple loans.
- Review how the new terms compare to your current situation.
- Be aware that the total repayment period might extend.
Real world scenarios
- Naomi merges multiple loans into a single consolidated account, reducing her monthly paperwork. She secures a rate slightly better than her weighted average.
- Paul consolidates to lock in a fixed interest rate. This stability helps him plan ahead without worrying about rate hikes.
- When Elena graduates from multiple programs, consolidating keeps her from juggling payment deadlines across several loans.
Related terms
Related Playbooks
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