Private student loans normally come with variable interest rates, and when consolidated, the new Private Student Consolidation Loan with also have a new variable rate.
If this is the case, think twice before consolidating private student loans because a lower interest rate can be more important than a lower monthly payment.
If you can afford your private student loan payments, you might choose not to consolidate if it means a higher interest rate.
A Home Equity Loan May be an Option: If you are a homeowner and have home equity, you might consider paying off all of your student loans with a home equity loan.
A: The answer is maybe, depending on the company consolidating your loans.
Private student loans and federal student loans generally cannot be combined in the same way that federal student loans can be consolidated.
By consolidating your loans, you will combine your loans into a new single loan, often with a lower monthly payment and an extended repayment period.Be aware that by extending your repayment period, you may have a lower monthly payment but you may also pay significantly more interest over the life of the loan.Federal student loans like Perkins and Stafford loans can be combined into a Federal Consolidation Loan.The Federal Consolidation Loan offered by the government usually comes with attractive fixed interest rates.These low rates are not available to private student loans.Private student loans on the other hand, can only be consolidated with Private Student Loan Consolidation which is an option offered by several banks.