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  • Yosi Rahimi

Should I consolidate my subsidized and unsubsidized loans?

That's a big question that has different answers depends on your status.


B. from Arkansas, $18K in student loans debt

B. has 4 loans already in repayment. She wants to know if there is any benefit in consolidating her 2 subsidized and 2 unsubsidized loans. There is no quick answer for this question.

Technically it is possible to consolidate direct subsidized and direct unsubsidized loans, but it doesn't mean that you should automatically. In B's case, consolidating the loan will mean that she couldn't refinance her highest interest loan and save about $1200 by doing so. Actually, B. won't have any benefit from consolidating her loans not in the form of lowering her interest nor in the form of a repayment plan that better fits her financial status.


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Have a specific question regarding your loans? Send it to FreeAdvice@moneycompass.io

#studentloans #studentdebt #repaymentplans