Repayment terms are typically extended (usually up to 20 years) and interest rates are often competitive.A private consolidation loan combines several private student loans into a single, more manageable loan.
Private student loan consolidation can streamline repayment by replacing multiple payments with a single monthly payment.
You can only consolidate federal, not private, student loans through this program.
(Note: You cannot consolidate federal and private student loans together through the federal government, either.) You can consolidate an existing Direct Consolidation Loan so long as you have a new eligible loan with which it can be consolidated.
You're effectively replacing your existing loans with one new loan, and you can choose from options that offer you access to different loan terms and fixed, variable, and hybrid interest rates.
With many private lenders, you can consolidate both private student loans and federal student loans separately or together.