Should You Combine Your Student Loans or Keep Them Separate? Experts Explain.

If you’ve got multiple student loans floating around, you probably know the feeling; juggling different due dates, interest rates, and loan servicers can feel like a part-time job. It’s easy to lose track or feel overwhelmed, especially when you’re trying to stay on top of your other financial goals too.

That’s when a common question comes up: Should I just combine all my student loans into one?

It sounds appealing, right? One payment, one rate, one less thing to stress about. But as with most financial decisions, the answer isn’t that simple. Whether it’s smarter to combine or keep them separate depends on your goals, income, and what kinds of loans you have.

Let’s break it down, in plain English, and explore what the experts have to say about it.

What Does It Mean to Combine Student Loans?

When people talk about “combining” their student loans, they’re usually referring to one of two things: consolidation or refinancing.

Here’s the difference.

Consolidation typically refers to combining federal loans through the U.S. Department of Education. You’ll get one new loan with a weighted average interest rate of your existing loans. The main benefit? Simplicity. You won’t necessarily save money on interest, but you’ll have one monthly payment instead of several.

Refinancing, on the other hand, is when you combine federal and/or private loans into a new private loan,  ideally at a lower interest rate. It can save you money in the long run, but it also means giving up federal benefits like income-driven repayment plans and loan forgiveness options.

So, both options can “combine” your loans,  but they work very differently. Understanding which one fits your situation is key.

The Case for Combining Your Loans

If your biggest pain point is managing multiple payments, combining your loans might make life a whole lot easier.

Think about it: instead of remembering four or five payment dates, you just have one. That’s fewer logins, fewer surprises, and less mental clutter. For many borrowers, that alone can make a huge difference.

There’s also the potential to save money. Refinancing, in particular, can sometimes help you lock in a lower interest rate, especially if your credit score has improved since graduation or your income has gone up. Even shaving off a point or two in interest could save you thousands over time.

Experts say that consolidation can also make budgeting simpler. “It’s easier to plan when you have one predictable payment each month,” says Jennifer Browning, a certified financial planner. “It helps people stay consistent, and consistency is what keeps borrowers on track.”

However, experts also warn against doing it for convenience alone. It’s worth making sure that the benefits outweigh what you might give up, especially if your current loans come with protections or perks you value.

When Keeping Loans Separate Makes More Sense

Combining your loans isn’t always the best move. In some cases, keeping them separate gives you more flexibility and protection.

For instance, if you have federal loans, you might qualify for forgiveness programs or income-driven repayment plans. Once you refinance those into a private loan, those options disappear for good. That could be a big deal if you ever lose your job, go back to school, or decide to work in public service.

Keeping loans separate also gives you more control over how you pay them down. You might choose to focus on the loan with the highest interest rate first (the “avalanche” method) or knock out smaller loans to build momentum (the “snowball” method).

And sometimes, different loans just have different rules. One loan might have a fixed interest rate, another variable. One might qualify for deferment or forbearance, another might not. Keeping them separate lets you stay strategic,  rather than locking everything into one single plan that may not fit all your loans equally well.

So before combining, it’s worth asking: What flexibility am I giving up, and what am I gaining?

Key Factors to Consider Before Making a Decision

Before you rush into combining or refinancing, take a step back and think through the big picture. The right choice depends on your goals, your loan types, and your long-term plans.

Here are a few factors experts say to consider:

1. Interest Rates

Look closely at your current rates. If some of your loans already have low interest rates, refinancing them into a higher one, even for simplicity, could cost you more over time.

On the flip side, if you’re carrying several loans with high rates, combining them under one lower rate could make a meaningful difference. Always calculate your potential savings before deciding.

2. Type of Loans

Federal loans come with borrower protections, like income-driven repayment and potential loan forgiveness. Private loans don’t. If you refinance federal loans into a private one, you’ll lose those benefits permanently.

It’s not always a dealbreaker, but it’s something to weigh carefully.

3. Your Financial Stability

If your income is steady and your credit score is strong, you may qualify for a better rate through refinancing. But if your financial situation is uncertain, keeping federal loans separate might give you more options for flexibility or relief if times get tough.

4. Long-Term Goals

Are you trying to pay off your loans faster, or are you looking to make payments more manageable in the short term? Your answer can point you in the right direction.

If you’re weighing your options, it’s worth reading up on the best way to consolidate student loans so you can see how different approaches, like consolidation or refinancing, align with your financial goals. Understanding the pros and cons before making a move can save you stress and money down the line.

Expert Tips for Making the Best Choice

Once you’ve weighed the pros and cons, how do you actually make the right decision? Financial planners suggest a few smart steps before moving forward.

Run the Numbers

Don’t rely on guesswork. Use online calculators to compare your current interest rates, repayment terms, and total costs versus what consolidation or refinancing would look like. Even small changes in rate or term length can add up to thousands of dollars.

Don’t Combine Just for Convenience

A single payment sounds nice — but convenience shouldn’t come at the expense of flexibility or financial protection. Ask yourself if simplifying payments is worth losing access to programs like deferment or forgiveness.

Consider the Timing

Interest rate environments change. If rates are low, refinancing could make sense now. If rates are climbing, it might be better to wait or stick with your current plan until conditions improve.

Seek Professional Advice

If you’re unsure, talk to a financial advisor or loan specialist. A short conversation could save you from a long-term mistake, and might reveal options you didn’t even know you had.

The Pros and Cons at a Glance

For a quick recap, here’s how the two options generally stack up:

There’s no universal “better” choice; it’s about finding what fits your situation and your peace of mind.

So, What’s the Bottom Line?

If you’re the type who thrives on simplicity and you’re confident in your financial footing, combining your loans might help streamline your life and even save you money.

But if you prefer flexibility, value the protections federal loans offer, or plan to use income-driven repayment or forgiveness programs, keeping your loans separate could be the smarter play.

Ultimately, this decision is personal; it’s about your comfort level, your career path, and your financial goals.

The most important thing? Don’t rush it. Do your research, compare your options, and make sure you understand exactly what you’re signing up for. Because while combining your loans can make life simpler, keeping them separate might just keep your options open — and that, in itself, is a kind of stability.