Should I Consolidate My Student Loans? No, and Here’s Why

Are you thinking about consolidating your student loans?

If you really want to understand all of your alternatives to student loan consolidation, you just might want to read a bit further. Chances are, you’ve been looking for an alternative to go ahead and consolidate the student loan you’ve been staring in the face for the past – well – long time.

Be Careful When Thinking About Consolidating Your Student Loans

Remember the root of the word consolidation: con. I’m not going to pretend and say that I can foresee every situation. But I just might have an idea of what you’re thinking when you go looking around for an alternative to paying the student loan you took out so long ago.

Why did you take out the loan in the first place? Were you really out of money? Or did you just need some “extra” cash? The lending institutions wanted you to take out that student loan, and now they want you to consolidate that student loan. They want you to think there is no alternative.

Well, there is.

There is an Alternative to Consolidation

Simply pay off the loan. Bite the bullet and pay off the loan. On top of student loans you probably have credit card debt, car debt, and a mortgage to boot. You are up to your ears in debt. So your logical alternative to paying the debt, is to conslidate the loan into one easy, albeit large, loan.

Treat the Problem, Not the Symptom

You are simply treating the symptom. Your problem is not your loan. Your problem is your spending. And until you get your spending under control, you’ll continue looking for that student loan consolidation opportunity.

Or have I misunderstood? Were you searching for an alternative to consolidating your student loan? If so, then I apologize for assuming the worst of you. I praise your courage to avoid the consolidation opportunities out there. Go ahead and take a look at some of them. They want your money. They want to get you on their “special” program. They make me laugh.

You Need a Budget

The alternative you’re looking for? You don’t need a consolidation program. You don’t need any more debt. You don’t need to make more money. You need a budget.

This post was originally published in 2005 and has since been updated and refreshed.