Like most borrowers with student loan debt, you probably have multiple student loans, perhaps different types with several lenders.
Along with gaining a new degree, many graduates will also leave campus with new student loan payments they'll have to fit into their post-graduate budgets.And once consolidated, they usually have variable interest rates, O'Connor says. Consolidating private student loans when interest rates are low (like now) "could potentially save thousands of dollars." It also means your interest rate can fluctuate higher as the years tick by.Unlike federal loans, it can be trickier to get your private loans consolidated.Private lenders require borrowers to pass a credit check to get the best rates.
That means if your score isn't superhigh, you could wind up paying more if you consolidate.
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.