Pros And Cons Of Taking Out Multiple Student Loans

There are pros and cons of taking out multiple student loans

Pixabay user NicolayFrolochkin

Many college students find themselves taking out a student loan to afford college. Some students end up taking more than one student loans simply because one loan is just not enough to cover the cost of their college tuition. Taking out multiple student loans is not all-good, neither is it all-bad. There are a few pros and a few cons to this.

Pros of Taking Out Multiple Student Loans

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Different loans have different interest rates and loan terms.

With multiple student loans you are not stuck with one large, expensive loan. You can plan it in such a way that you borrow as much as possible from lenders that offer lower interest rates and more favorable terms. The more expensive loans can be kept as a last resort to cover the rest, if you need to.


Taking multiple student loans also gives you a certain amount of flexibility in that you can put measures in place to pay off your expensive loans first so you lower your overall debt.


With some planning, you can also lower the interest rate of your more expensive loans if you consolidate your student loans. If you want to consolidate, do your research first. Talk to your lender about it. Don’t consolidate just because you have the option to.

Cons of Taking Out Multiple Student Loans

Multiple Repayments

This means you need to stay super organized when it is time to repay the money so you do not miss any payment. There are ways that you can stay on top of all your payments, such as using a spreadsheet, but it can be stressful.

More Loans, More Paperwork

No two loans are exactly the same, which can be both a blessing and a curse. However, in terms of cons, this means keeping track of multiple loans—each with their own terms and conditions. It can be difficult to keep them straight and not mix up one repayment plan with another’s policies.

What Should You Do?

At the end of the day, it’s up to you and your unique financial situation. If one loan, as well as all your other financial aid, can’t cover the rest of your college expenses, then what else can you do? There are both upsides and downsides to taking out more than one student loan. On the positive side, you can pick and choose which loans to repay first (you should definitely start with the loan with the highest interest rate) and you can shop around for lower interest rates and better terms for a larger portion of your loans. On the downside, you’ll have to keep track of your multiple loans and multiple different policies. Of course, there are ways to keep yourself organized, such as making a spreadsheet. But, it’s still multiple loans that you have to worry about, and missing any one of them means potentially defaulting.

Use College Raptor’s new Student Loan Finder to discover personalized loan options. Compare lenders and interest rates to find the ideal student loan for you!


Lender Rates (APR) Eligibility
Earnest company logo.
Variable APR: 1.88% - 5.64%*
Fixed APR: 2.44% - 5.79%*
Undergraduate and Graduate
Lendkey company logo.
Variable APR: 1.90% - 5.25%*
Fixed APR: 2.49% - 7.75%*
Undergraduate, Graduate, Parent PLUS
Credible company logo.
Variable APR: 1.80% - 9.99%*
Fixed APR: 2.15% - 9.99%*
Undergraduate and Graduate
Laurel road company logo.
Variable APR: 1.64% - 5.65%*
Fixed APR: 2.25% - 5.75%*
Undergraduate and Graduate
Commonbond company logo.
Variable APR: 1.96% - 7.02%*
Fixed APR: 2.59% - 6.94%*
Undergraduate, Graduate, Parent PLUS
Fixed APR: 2.44% - 5.97%*
Undergraduate, Graduate, Parent PLUS
VISIT ISL Education Lending
Variable APR: 1.87% – 5.41%**
Fixed APR: 2.30% – 5.94%**
Undergraduate, Graduate, Parent PLUS
VISIT Nelnet
Variable APR: 2.94% - 4.84%*
Fixed APR: 2.99% - 4.94%*
Undergraduate and Graduate
VISIT College Ave
Variable APR: 1.86% - 6.01%*
Fixed APR: 2.47% - 5.99%*
Undergraduate and Graduate, Parent PLUS

*APR includes a 0.25% interest rate reduction for enrollment in automatic payments.

**Interest rate reduction of .25% for automatically withdrawn payments from any designated bank account (“auto debit discount”). Auto debit discount applies when full payments (including both principal and interest) are automatically drafted from a bank account. The auto debit discount will continue to apply during periods of approved forbearance or deferment if the auto debit discount was in effect at the time of receiving the forbearance or deferment. Auto debit discount will remain on the account unless (1) the automatic deduction of payments is canceled or (2) there are three consecutive automatic deductions returned for insufficient funds at any time during the term of the loan.

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