Benefits of Consolidating a Student Loan

A student loan will typically appear on a credit report as multiple accounts and multiple different loans.  This is because even though he might be dealing with one single lender to wait student loan’s work, you are essentially given a new loan at the beginning of each new term or semester.  Every time a new term semester begins a new account number with a new student loan will be added to your credit report even though it may come from the same lender.
Even though this loan may appear as multiple accounts and multiple loans on a credit report it does not harm your credit score in any way.  Do not get confused by this format because when the time comes for repayment of the student loan you will simply have to make one single payment every month to one single lender in spite of the different student loan accounts opened in your name.
In case you have used more than one lender to finance your education through college or any other educational course that of course you will have different loans to pay off a with different creditors. The benefit of consolidating the student loan in such a case will be that you will take up one single loan to pay of all your creditors in one go and then we’ll need to make the payment towards one single loan which will usually be of a longer duration than the original student loan.  Consolidated student loan could be for a term as long as 15 years with a lower rate of interest which will dramatically reduce the amount of payments that you have to make every month. The flip side of the situation is that since you will be paying off the loan for a longer period of time you might have to end up paying more money even though the monthly installment was reduced.

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