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We're the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly.

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Should I consolidate my private student loans?


Consolidating private loans into a private consolidation loan may be a good idea if you get a better deal. 

Like federal consolidation loans, private consolidation loans combine your existing private student loans into one larger loan – you are replacing your original private student loans with this new loan. You will have a single monthly payment for your new private consolidation loan, which may be simpler. Private student lenders may offer an interest rate reduction for creditworthy borrowers seeking to consolidate their private student loans. This can save you money over the lifetime of your loan.

Just like private education loans, private consolidation loans often have variable interest rates – meaning your interest rate can change over the life of the loan – the interest rate you are offered depends on your credit score. The amount of time you have to repay the loan can vary from 10 to 25 years depending on the lender and the amount of the loans being consolidated. Read the fine print – your consolidated loan may not have the same terms as your original loans.

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