Student debt consolidation is a process of consolidating student loans with the aim of obtaining a lower interest rate and reducing monthly payments. Borrowers who opt for a consolidation loan and make regular or automatic payments are often offered a lower interest rate. Refinancing is a way of consolidating multiple debts and allows borrowers to keep track of payments and stick to a budget. Obviously, managing multiple loan payments, fees, and due dates is stressful and may result in missed or late payments. This may result in penalties and higher interest rates, and the borrower’s credit score may suffer.
