Student loan consolidation and student loan refinancing are two very popular options for those looking to manage their student debt. But what’s the difference between the two? And which one is right for you? If you decide to go the consolidation route, make sure you take a look at Credello’s debt consolidation loan calculator so you can find the loan that makes the most sense for you.

Here’s a quick rundown of the key differences between student loan consolidation and student loan refinancing:

As any student knows, loans can quickly add up, and it can be difficult to keep track of multiple payments. Student loan consolidation simply combines multiple student loans into one single loan. This can make repayment more manageable, but it doesn’t necessarily reduce the overall amount of interest you’ll pay.

Loan consolidation can be a helpful way to simplify the repayment process, but there are also some potential drawbacks to consider. One advantage of consolidation is that it can lower your monthly payment by extending the repayment period. This can make loan repayment more manageable, especially if you are struggling to keep up with multiple loans. However, consolidation also increases the total amount of interest you will pay over the life of the loan. In addition, consolidating your loans may make them ineligible for certain repayment plans or forgiveness programs.

Student loan refinancing can be a great way to save money on your student loans. Student loan refinancing essentially means taking out a new loan to pay off your existing student loans. This can help you secure a lower interest rate, which can save you money over time. However, it’s important to note that not everyone will qualify for student loan refinancing. By refinancing, you can get a lower interest rate and extend the term of your loan, which can help make your monthly payments more affordable.

However, there are also some potential drawbacks to student loan refinancing. For one thing, if you have federal student loans, you may lose out on certain benefits, such as income-based repayment plans and loan forgiveness programs. Additionally, if you refinance with a private lender, you may be giving up certain protections that are available with federal student loans.

So, which option is right for you? The answer will depend on your individual circumstances. If you’re struggling to make your student loan payments, consolidation may be a good option to make things more manageable. On the other hand, if you’re looking to save money on interest, student loan refinancing could be the way to go. Whatever you decide, make sure you do your research and compare all of your options before making a decision.

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