There are a number of reasons why it is beneficial to seek the consolidation of student loan debt. Yet, many who are encumbered with student loans will opt to pay each and every loan separately. Honestly, while there is nothing inherently wrong with paying back the loans this way such a method makes little fiscal sense. This is because there will always be other debt issues that will be compounded when adding various loan payments to the mix.

Keep in mind, life comes with various costs. That means the mailbox will always be filled with bills. While it is always beneficial to cut unnecessary expenses whenever possible, there are certain bills that will be impossible to eliminate. These bills include car payments, insurance fees, mortgage and rent, health insurance payments and, of course, credit card debt. Keeping one's head above water dealing with such debt is not always easy. Adding three additional student loan payments per month on top of these bills could make managing one's finances incredibly difficult.

So, rather than pay three $100 minimum payments per month for three student loans it would be much easier to consolidate the debt into one loan. With one loan there is, of course, one payment. Clearly, paying one $150 monthly payment vs. paying a combined minimum payment of $300 a month is a much better deal. Additionally, it frees that "extra" $150 to pay for other expenses. In fact, that $150 could be put forth towards the aforementioned credit debt or any other bill for that matter. Then again, one could simple put the money away in the bank. After all, having access to liquid capital when necessary is certainly not a bad situation to be in. Remember, by reducing your monthly payments you will have much more flexibility in your budget. This will allow for more control over the budget which is the way it should be.