What is private student loan consolidation?
Like your federal student loans, private student loans may be consolidated into a single monthly payment. This is done through a private lender such as a bank or credit union.
Interest rates and terms
Unlike federal loan consolidation, private student loans often come with a variable interest rate when consolidated. This means your monthly payments will fluctuate as interest rates go up or down. Private student loans can usually be paid off over a 10-25 year term.
Benefits of consolidating student loans privately
Based on your creditworthiness, lenders may offer you a reduced interest rate on your consolidated private loans. This can save you money over the life of the loan. Having a single monthly payment also makes it easier to keep track of your payments.