U.S. Bees… Anyone consolidated their student loans? I have a few questions…

posted 2 years ago in College
Post # 2
1676 posts
Bumble bee
  • Wedding: November 2013

MrsEdamame:  Consolidating your loans really doesn’t lower the cost. It’s more of a convenience than anything else. When they consolidate, they take the weighted average of all your interest rates, so there’s no saving or loss. I opted not to consolidate so I could make larger paments on my higher interest loans, which will save me money long term. If you’re not planning to pay more than the minimum, it really doesn’t matter.

Post # 4
4041 posts
Honey bee

GrannyPantiesRock:  I too opted not to consolidate so I could pay down the higher interest rate loans faster. 

OP, it could actually cost more because of “fees” to consoldiate. Did you take all your loans out through one provider? If so, no need to consolidate because when you log in all your loans will pull up on the same screen. 

Post # 6
2358 posts
Buzzing bee
  • Wedding: November 1999

I also did not consolidate. It would have made my resulting payment be higher than the sum of the individual payments by themselves as they are. Plus I can pay towards the higher interest  loans more aggressively. I have income based setup right now and my first job after graduating was 50k. I wish there was some sort of advisor to go to that would help strategize, but I haven’t found anyone who will advise about loans not from their institution, and I started out with 5 different lenders. Best of luck.

Post # 7
382 posts
Helper bee

MrsEdamame:  I consolidated all of my loans after undergrad. They asked which ones I wanted to put in consolidation and I opted for all because I wanted one payment instead of several. As another bee mentioned, the interest rate is averaged and I didn’t end up losing money. I still would have consolidated if the difference was only a few dollars more than the sum because I like the convenience.  I’m in a master’s program now and will be going into a PhD program when I finish. In the end, I will consolidate again either all into one or just my grad loans so I’ll have two payments vs several. I definitely plan to do the income based repayment plan so that I have a lower obligation but will pay as much as I can afford toward the principals to pay it off faster.

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