You will have a single monthly payment for your new private consolidation loan, which may be simpler.
Private student lenders may offer an interest rate reduction for creditworthy borrowers seeking to consolidate their private student loans.
Here's what you need to know before deciding to consolidate student loans.
Loan consolidation is when a borrower takes out a new loan to pay off several smaller student loans.
Consolidating private loans into a private consolidation loan may be a good idea if you get a better deal.
You can either attempt to do this yourself, or you can hire a debt settlement firm that specializes in settling debts. You can consolidate all, just some, or even just one of your student loans.Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.Instead of making multiple payments to multiple lenders, the borrower only has to pay off the new consolidation loan, says Michelle Pezzulli, vice president of operations for Credit Union Student Choice, a student lending service provider in Washington, D.C."That new loan will have its own interest rate; it will have its own repayment terms; it will have its own terms and conditions," she says.