| The private student loans or the alternative student | | | | student loans into one single EMI on a monthly basis. |
| loans are those loans which students avail of over | | | | Also always never consolidate the federal loans and |
| and above the financial aid that they get. These loans | | | | the private loans. The federal loan rates are much |
| are used to pay off living expenses or even the | | | | lower and hence it is better to consolidate them |
| expenses for the books or computers. | | | | separately. Talk to the banks for consolidation and if |
| Since these loans are not sponsored by the | | | | they do not agree then there are specialized loan |
| government and are given by the banks the rates | | | | consolidation agencies that can do the consolidation. |
| are generally very much higher than the normal rates. | | | | Always go for a longer tenure to lower your monthly |
| Apart form the fact that students have low credit | | | | EMI. Also get a co-signer or collateral so that the EMI |
| score and hence the loan rates are higher. | | | | gets lowered. Consolidation will help you manage the |
| If you have two or more of these loans then it is | | | | finances better and it will also help to make sure that |
| better to consolidate the private student loans. The | | | | you have enough money in the bank for any |
| best option is to talk to your bank and suggest them | | | | exigencies. Make sure that you approach the banks |
| that since you are unable to service each loan | | | | that originally lent you the loan first. |
| separately it is better to consolidate the private | | | | |