Consolidate Your Student Loans: Everything You Need to Know

Is student loan consolidation right for you? Millions of Americans owe a total of nearly $1.8 trillion in student loan debt, and there are several options available when it comes to consolidating and refinancing student loans.

However, there’s quite a bit you should know before you decide to consolidate your federal or private student loans. Here's some of the important information to learn before you make any decisions.

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A piggy bank next to a jar full of money labeled Student Loan Debt. — Image source: Getty Images.

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Refinancing

A financial strategy in which a borrower uses one debt to pay off and replace other debt.

That said, there is certainly some overlap in how these terms are used in practice, even by financial companies. For example, many personal loan companies advertise “debt consolidation” loans, but they are actually providing new loans that are used to pay off and replace a borrower’s debts.

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Student Loans: Everything You Need to Know

There's a lot to unpack about student loans, so here's a guide to get you started.

Student Loans vs. Parent Loans: Who Takes Out Loans for College?

When it comes to paying for a child’s college education, many families must weigh taking out student loans vs parent loans.

Subsidized and Unsubsidized Student Loans: Explained and Compared

Here's what borrowers need to know about the two main types of federal student loans: subsidized and unsubsidized.

Parent PLUS Loans: Interest Rates, Eligibility, and More

The Parent PLUS is a loan that eligible parents can take out to help pay for the undergraduate education of a dependent student.

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, The National Desk, and other TV networks and publications for his financial, stock market, and investing expertise.

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Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Matthew Frankel, CFP® has positions in SoFi Technologies. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.