Pros:
* Simplified Repayment: This is the biggest advantage. Instead of juggling multiple loans with different interest rates, due dates, and servicers, you'll have one monthly payment to one lender. This makes budgeting and tracking much easier.
* Potentially Lower Monthly Payment: While the total amount you pay might not decrease, consolidation can sometimes result in a lower monthly payment, especially if you opt for a longer repayment term. This can be beneficial if you're struggling to make your current payments. However, be aware that a longer repayment term means you'll pay more in interest overall.
* Fixed Interest Rate: If you have a mix of fixed and variable interest rate loans, consolidation can lock you into a single, fixed interest rate. This protects you from interest rate fluctuations that could increase your monthly payments. However, this fixed rate may be higher than the lowest rate you currently have.
* Potential for Income-Driven Repayment (IDR) Plans: Consolidating federal loans can make you eligible for income-driven repayment plans, which base your monthly payment on your income and family size. This can significantly lower your monthly payments, but it may extend your repayment period and increase the total interest paid over the life of the loan.
Cons:
* Higher Total Interest Paid: Extending your repayment term (as is often the case with a lower monthly payment) will significantly increase the total amount of interest you pay over the life of the loan. This is the most significant drawback for many borrowers.
* Loss of Certain Benefits: Consolidating federal loans into a direct consolidation loan generally doesn't affect access to federal income-driven repayment plans. However, consolidating federal loans into a private loan will eliminate eligibility for federal student loan forgiveness programs, income-driven repayment plans and other federal benefits. Consolidating multiple federal loans into a single federal loan might also cause you to lose benefits associated with individual loans, such as lower interest rates or specific repayment plans tied to the original loans.
* No Impact on Credit Score (directly): Consolidation itself doesn't directly improve your credit score. However, consistently making on-time payments on your consolidated loan *can* positively affect your credit score over time.
* Potential for Higher Interest Rate (especially with private consolidation): While a fixed rate can be beneficial, the consolidated interest rate may be higher than the lowest rate among your existing loans, especially if you consolidate into a private loan.
* Complexity of the Process: The application process for consolidation can be complex and time-consuming, requiring careful review of your existing loans and the terms of the consolidation loan.
In short: Consolidation can simplify repayment and potentially lower your monthly payment, but it usually comes at the cost of paying significantly more interest overall. Carefully weigh the pros and cons, compare different options (federal vs. private consolidation), and consider your financial situation and long-term goals before making a decision. It's often wise to seek advice from a financial advisor before proceeding.