Is consolidating my student loans a good idea

But before you head down that road, here’s what you should know.

If, like many college graduates, you have multiple student loans, you’ve probably heard the term “student loan consolidation” thrown around more than once when talking about repayment options.

Simply put, this is the process of combining your multiple student loans into a single, bigger loan, possibly with a new lender.

It’s a tricky question both because there are a lot of variables to consider and because there’s a lot of misinformation out there about exactly what student loan consolidation is and how it can help you.

In reality, though, not that many people end up being eligible.

Requirements vary depending on the type of loan, but most offer forgiveness for those employed in certain public-service occupations.

Under certain circumstances, federally backed student loans – such as Direct Subsidized Loans and Federal Perkins Loans – can be discharged or forgiven.

The prospect of your student debt evaporating may seem like a dream come true.

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