What are private consolidation loans?
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, making repaying your loan simpler.
Just like other private education loans, private consolidation loans have variable interest rates – meaning your interest rate can change over the life of the loan. The interest rate you are offered is dependent upon your credit score.
Pay attention to the fine print when consolidating. Your new consolidated loan may not have the same terms as your old loans.