| With the rising cost of a college education many | | | | In many cases a student loan consolidation program |
| students are using private student loans to | | | | is available to any student that can either show the |
| supplement their financing, and these same students | | | | credit history necessary to get a consolidation loan, |
| face the question of private student loans | | | | or any student that has the collateral to back up a |
| consolidation after they have graduated. The chances | | | | consolidation loan. A private loan is not backed by the |
| are very good that a graduating college student has | | | | federal government, so the bank will have |
| acquired several student loans, and consolidation could | | | | requirements that will need to be met in order to |
| be a way to help lower their debt. | | | | qualify including income and credit history. While |
| When a student has multiple private student loans, | | | | private student consolidation loans carry higher |
| there is a chance that consolidation is a good idea. | | | | interest rates than federal loans, they can still come |
| Consolidating private student loans reduces the | | | | in at a reasonable rate normally under 10%. Your |
| number of monthly service charges that have to be | | | | actual rate will vary depending on the terms of your |
| paid from several to just one. If a consolidation loan | | | | loan. You may be able to negotiate an interest rate |
| has a lower interest rate than the multiple loans then | | | | as low as 5%, or your situation may cause the bank |
| that can lower monthly payments, and lower the | | | | to assign a higher interest rate to your consolidation |
| amount of interest due on the total amount of the | | | | loan. |
| loan. | | | | |