How to Calculate Your Savings with Student Loan Consolidation

Student loan consolidation is a way to simplify multiple loans by combining them into one, which can lower your monthly payments, reduce late fees, and potentially save you money. 

However, consolidation doesn’t always mean you’ll save your money. In some situations, it could actually cost you more. That’s why it’s important to know how to calculate your savings with student loan consolidation first, so you can make an informed decision. Here’s the breakdown.

Calculate Your Savings with Loan Consolidation Calculators

Generally, you can calculate your savings from student loan consolidation either manually or with a digital tool. Using a digital calculator is recommended, as it’s much faster and easier. Here’s a list of tools you can try, along with simple steps to use them.

1. FinAid

The FinAid Loan Consolidation Calculator is a simple tool that lets you compare your current loans with a consolidation loan based on monthly payments, interest rates, and total repayment costs. Here are the steps to use it.

• Go to the FinAid calculator page.
• Enter your current loan details, including loan type, balance, interest rate, and term, along with the consolidation interest rate and consolidation term.
• Just click ‘Calculate’ and wait for the results. You’ll be able to see exactly how much you could save.

Also Read : How to Refinance Student Loans for a Lower Rate: Step by Step 

2. Advisor 360°

The Student Loan Consolidation and Debt Payoff calculator by Advisor 360° is an interactive online tool that can help borrowers see how consolidation might affect their finances. Here are steps to use it. 

• Go to the Student Loan Consolidation and Debt Payoff calculator page.
• Enter your current student loan debt, total current monthly payment, consolidated loan rate, and additional monthly payment.
• After entering your details, the calculator will display your potential monthly savings. For a more detailed breakdown of your financial situation, simply click ‘View Report’.

Also Read : Should You Refinance Your Student Loans? Pros, Cons, and Key Tips

3. Calculator.net

The Debt Consolidation Calculator by Calculator.net is a helpful tool that allows you to assess the financial benefits of consolidation by comparing the APR (Annual Percentage Rate) of your current debts with that of a potential consolidation loan. Here’s how to use it. 

• Go to the Debt Consolidation Calculator page.
• Enter your current student loan debt information, such as name, remaining balance, monthly payment, interest rate, and consolidation loan information, such as loan amount, interest rate, loan term, and loan fees. 
• Click “Calculate” and wait for the detailed results. The calculator will show whether consolidation can save you money, with a detailed comparison between your current debts and the consolidation loan. This includes APR, monthly payments, payoff timeline, loan fees, upfront cash flow, total payments, and total interest. All displayed in a table format.

4. GetSmarterAboutMoney

The Debt Consolidation Calculator by GetSmarterAboutMoney is a tool that helps you estimate your new monthly payments, see how quickly you could become debt-free, and calculate the total interest you would pay after consolidating your debts. Here’s a simple guide on how to use it.

• Go to the Debt Consolidation Calculator by the GetSmarterAboutMoney page.
• Enter your current student loan details, such as the loan name, outstanding balance, annual interest rate, and term. 
• Click “Add” to enter your next loan, and repeat the process until you’ve included all your debts. Once finished, you’ll see your total cumulative debt and monthly payment displayed below.
• Click “consolidate your debt”. 
• Enter consolidation information such as monthly payment, term, and yearly interest rate.
• Click “Final Result,” and the calculator will display both a table and a graph comparing your current debt scenario with the consolidated debt scenario. The comparison includes total balance, total interest, total payment, monthly payment, and loan term. The calculator also provides assumptions and an interpretation of the results, showing whether you save money and the exact amount you could save.

Also Read : The Pros and Cons of Federal Student Loan Consolidation

Have You Discovered How Much Your Savings Have Consolidated?

Student loan consolidation can be a smart strategy to simplify your payments and potentially reduce your financial burden. By using any of the tools mentioned above, you can clearly see the difference between your current loans and a consolidated loan, whether in terms of monthly payments, interest rates, or total repayment cost.

Just remember that, with the right consolidation plan, you can save money, reduce stress, and take control of your financial future. So, it’s always wise to compare different scenarios and terms between your current loans and a potential consolidation loan before making a final decision.