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Consolidate Student Loans

Student loan borrowers cannot consolidate student loans, both federal and private, into one private consolidation loan. Borrowers still have a choice among multiple private student loan consolidation options. The principal advantage reaped from private loan consolidation is receiving a single monthly payment. The monthly payment might also be lower since consolidation resets the loan period. As with federal consolidation, private consolidation loans that have a longer repayment period will result in higher total interest paid throughout the loan's term. Borrowers should find out whether the private consolidation loan's interest rate is variable or fixed, whether there are prepayment penalties, and whether any fees are charged.

Interest rates on private student loans are credit-based. Therefore, borrowers may be able to obtain a more attractive interest rate on their consolidated private loan if their credit rating has increased significantly since they first took out the loan. Lenders, rather than the government, determine the interest rates, and some might charge origination fees. The following is a list of lenders that consolidate private student loans.

To be eligible for a private loan consolidation, the borrower must be a U.S. citizen, reached the age of majority in the state of residence, and must have completed or will complete their degree within 30 days.

Repayment options vary depending on loan amount. Typically, all repayment plans begin 30 to 45 days following loan disbursement.

  • EduCap Inc. Loan to Learn Private Consolidation Loan
  • Collegiate Funding Services (CFS)
  • Key Education Consolidation Loan
  • Education Finance Partners
  • Nelnet Private Consolidation Loan
  • MELA Private Consolidation Loan
  • Wells Fargo
  • SunTrust eCon Loan

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