If you’re feeling overwhelmed by student loans or just want to consolidate so you don’t have to make several loan payments every months, student loan consolidation programs are a great way to address your financial concerns. Which student loan consolidation program is best for you? Consider these points:

If you’ve got a government issued, low-interest student loan, student loan consolidation may not be a good choice for you.
Student loan consolidation programs are almost always offered through private lenders. Private lenders charge more interest than the government-issued student loans. Therefore, if you’ve got government loans, it may cost you money to consolidate and cause your loan payment to go up. Before you consider student loan consolidation programs, look into the type of student loans you have and determine your interest rates and remaining principal.

Consider a home equity loan for your student loan consolidation.
If you’re consolidating student loans from private lenders, your existing loans may have prohibitively high interest rates. If you have equity in your home and you’re willing to use it, consider a student loan consolidation by getting a home equity loan to pay off your student loan. You may have the same principal, but lower interest rates equal a lower monthly payment.

You may be eligible for student loan consolidation programs through your current lender.
If you currently have private student loans, you may be eligible for student loan consolidation through your current lender. Your lender may be able to refinance you to a lower interest rate or consolidate multiple loans, even if they don’t hold all of them. The benefits of using your existing lender are that you are both familiar with one another; you know your lender’s policies, and your lender has a clear idea of your payment history. If you have a good payment history with your lender, using a student loan consolidation program offered by your lender may be your best option.

Look out for a minimum balance requirement.
Many lenders only offer student loan consolidation programs if your outstanding balance is over $7,500. Some lenders lower that balance to $5,000, but still require a minimum balance. When you’re shopping for student loan consolidation programs, check for minimum balances before you waste your time negotiating a rate and going through the application process.

Financial options for student loan consolidation programs.
In most cases, the goal of student loan consolidation is to lower monthly payment. You can accomplish this in two ways: get a lower interest rate, or extend the terms of your repayment. As a borrower, you’ve got very little control over interest rate; a lender gives you an offer, and you take it or leave it. If you’ve got five years left on your student loan, though, you can extend your student loan repayment terms to ten years to reduce your monthly payments. Be careful to do the math, though; extending the payments costs you more in the long run, so weigh the costs and benefits.