At a Glance
The Canadian government offers two types of student loans: federal and provincial. Most people graduating from the university will find themselves with two or more student loans thus the need for consolidation. Loan consolidation entails re-negotiating all your loans and placing them under one line of credit with better repayment terms.
For instance, if you have federal and provincial student loans, you may want to access a line of credit that will combine the two and offer you better repayment terms including lower interest rates.
Why consolidate your student loans?
Debt consolidation, just like any other important financial step, requires a careful analysis of your situation. Unless your financial advisor says so, you shouldn’t assume that all your debts need to be consolidated.
That notwithstanding, there are significant advantages of consolidating your student loans including converting multiple and confusing payments into one, gaining access to negotiated interest rates, credit score improvement, and negotiating for faster and less stressful repayments.