For graduate students, consolidating your student loans becomes even more important than for undergraduate students. Because you generally carry significantly higher debt from being in school longer, making it more manageable when it comes time to repay is essential.



Based on the National Postsecondary Student Aid Study, graduate students average between $27,000 and $114,000 additional debt on top of their undergraduate debt. Here are 4 benefits that consolidating your graduate student loans provides.

The single most important benefit when you have a large debt is lowering your monthly payments so it is more manageable. When you consolidate graduate student loans, you replace your multiple student loans with one large consolidation loan. The total amount you pay each month with the consolidation loan is significantly less than the total amount paid each month on the multiple loans. This can be done by extending your consolidation loan period up to 30 years.

By consolidating your loans, you simplify the whole process. It's much easier to keep track of one loan instead of multiple loans with multiple lenders and due dates. Also, the amount of paperwork and other hassles are greatly reduced.

It should be noted that if you have both federal and private student loans, you will want to consolidate these separately. Federal student loans (graduate or not) receive special benefits and conditions which are lost if consolidated with private student loans. So if you have both, you will want to have one consolidation loan for federal student loans and one for private.

The process of consolidating your graduate student loans provides the opportunity to receive lower interest rates. This helps offset the cost of extending your loan period in order to receive lower monthly payments. The lower interest rates on larger loans can help you save a great deal over the life of the loan.

When you consolidate graduate student loans, you essentially pay off your existing student loans with your consolidation loan. By paying off loans on time or early, you improve your credit score.

This can benefit you in the future by providing better rates on your car loan or mortgage. For a mortgage, even a small improvement in interest rate could translate into thousands if not tens of thousands of dollars in savings.

If you want to lower your monthly payments to a more manageable level, deal with only one lender, get a lower interest rate and help your credit score, you should consolidate graduate student loans. Make your student loans fit your financial situation - it's the smart choice.