Consolidating Private Student Loans

The stress of starting out in a new career is worsened when student loan payments demand a good portion of the graduate's income. Consolidating all private student loans into one allows borrowers to make one monthly payment, rather than several to different accounts.
Private student loan consolidation can offer several other benefits, depending on the graduate's situation.

Graduates May Qualify for Rate Reductions

After graduation, borrowers may qualify for a better interest rate than when the private loan was issued. This is especially true one to two years into a stable career, or if the borrower can find a co-signer with an excellent credit rating.
The new lender may offer a lower APR, or Annual Percentage Rate, for the consolidated loan. Depending on the interest rates for the initial loans, this can add up to thousands of dollars saved in interest over the term of the new consolidated loan.

Consolidating Simplifies Loan Repayment

Juggling four or five different student loan payments every month can add unnecessary stress. It can also be difficult to keep track of the principle and interest values of each loan. Borrowers who consolidate can choose a term from five to twenty-five years (or thirty, for graduate students), which rolls all of the loans into the new term. Graduates are usually able to negotiate a monthly payment lower than they had paid for all of the loans individually.

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