Private vs. Federal Student Loan Consolidation

We offer both private and federal student loan consolidation services. We'll explain the difference between the two to help you decide which is right for your situation.

Private Student Loan Consolidation

Unlike federal student loan consolidation, the consolidation of private student loans is not sponsored by the government. Thus, private student loan consolidation usually comes with origination fees and other charges that don't apply to federal student loan consolidation. Another key difference is that federal student loan consolidation offers interest rates that are fixed for the life of the loan; the rates on private consolidation loans are usually higher and variable. Private student consolidation loans are much like any other loan you would receive from a private lender. They require a credit check and sometimes a co-signer if your credit alone does not qualify you for the loan. Whereas federal student loan consolidation allows only federal education loans to be consolidated, private student loan consolidation can include both private education loans and federal loans. If you have both federal and private student loans in your portfolio, it is best to use a private consolidation loan only for those student loans that are ineligible for federal student loan consolidation.

Advantages of Private Student Loan Consolidation

If you have both private and federal student loans, you can take advantage of private and federal student loan consolidation. Parents with private education loans can also take advantage of a private consolidation loan. Here are some of the benefits of consolidating your private education loans:

• Combine many loans into one easy payment
• First-year introductory rates start at 6.32% for private consolidation loans
• Get up to 30 years to repay your private student loans
• No prepayment penalties
• No collateral needed
• Easy, fast online application
• Release your co-signer (if you have one) after making so many payments on time
• Drastically reduce your monthly payments
• Fast approval process
• Enjoy borrower benefits like forbearance and deferment options

Apply for a student loan consolidation now from Federal Consolidation Loan.