College Loan Debt? Don’t Consolidate, Renegotiate

College Loan Debt? Don’t Consolidate, Renegotiate
  • Opening Intro -

    Loan consolidation is time consuming and mostly pointless.

    Loan renegotiation/refinancing on the other hand, is a smarter move that can actually save you a lot of money on your interest payments.


There’s been a lot of time and space taken in the media recently on the subject of college loan debts and how so many students are struggling to not only establish themselves in a career after their graduation, but to pay off huge student loan debts at the same time. What most don’t realize is there’s an easy way to significantly reduce their loan debt, and it takes hardly any time or trouble.

Consolidating Student Loan Debt

It doesn’t take long before most students get out of college before they start arriving in the mail…by the score, offers by financial institutions to consolidate student loans. And while this idea might sound good, and even be very tempting, all that glitters is not goal. To consolidate student loans means nothing more than to take several existing loans and combine them into one payment.

Sound good?

It’s not, since the terms of each loan remain the same, and in the end, you have saved practically nothing. In fact, you have only wasted time and effort. The good news is that there’s a better way.

The Answer? Refinance

What many people don’t know is that student loans, even government sponsored student loans, can be refinanced. This means that not only can a debtor combine all of their loans into one payment, but that the overall amount that is owed becomes less since the terms of the existing loans will be changed when the refinance is completed.

It’s like refinancing a house, in that you are renegotiating the terms of the loan that you have already taken out. As a result, you are taking all of the existing student loans that you might have and consolidating them into one loan with a different and probably a lower interest rate, which can save considerable amounts of money.


Sound good? You bet, and even better is the fact that you only need to do one thing for this to become a reality and put you on a new track to a better future. Ask. That’s right. Just go to practically any financial institution and tell them that you want to refinance your student loan debt. It really is that easy.

Once you negotiate the the pay-down terms for your student loan, learn how to best manage the debt. View our debt reduction guide for more information. Bookmark it for future reference.

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Most financial institutions would much rather you continued paying the higher interest rate on your student loans, so they usually won’t bring up the possibility of refinancing that amount. Fortunately, when you arrive prepared to discuss refinancing, they would much rather get less of your money than to have you leave, refinance with someone else, and get none of your money. The truth be told, the ball is in your court when you choose to refinance student loans, and you will have nothing more than a brighter financial future as a result.


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