| To most of the fresh graduates out there, it is a | | | | student loan consolidation, it is possible to consolidate |
| painful issue to pay back the loans they have taken | | | | your student loans together with your personal loans. |
| to support their college or university studies. If you | | | | Besides that, when you are going for federal student |
| are currently paying multiple interest rates to multiple | | | | loan consolidation, your interest rate will be lock at |
| loan agencies, you should know how that feels. Have | | | | the current low interest rate for the whole loan |
| you ever imagine that you can save thousands of | | | | period. For private student loan however, your |
| dollars by consolidating your student loans? In fact, | | | | interest rate might fluctuate with the market rate. |
| you can either go for federal or private student loan | | | | You can try to talk to the loan agency to look at the |
| consolidation. | | | | possibility of getting the lowest interest rate. |
| Loan agencies | | | | Advantages |
| As the name implies, federal loan consolidation is | | | | You can improve your credit score when you |
| offered by the federal government. It doesn't need | | | | consolidate your student loans with both programs. |
| credit check or co-signer (guarantor) because this | | | | This is because when you have consolidated your |
| loan consolidation program is protected by the federal | | | | loans, you are being seen as servicing one single loan |
| government. | | | | instead of multiple loans. |
| Private student loan consolidation is offered by | | | | It is said that you will enjoy lower interest rate when |
| banks, loan agencies or credit unions. And depending | | | | you consolidate your student loans with federal |
| on the loan agencies, you might need to provide a | | | | government. However, you can negotiate with the |
| co-signer or get your credit history check. | | | | private loan agencies to see if there is any alternative |
| How they work | | | | for you to get a better interest rate. |
| Both programs are meant to combine the multiple | | | | And for your information, you are allowed to |
| loans you have into one loan and extend your loan | | | | consolidate once with private agency and once with |
| period so that you can enjoy lower monthly | | | | federal agency. So, think properly before you sign up |
| payment. For federal student loan program, you can | | | | for any student loan consolidation program. |
| only combine your federal loans. But for private | | | | |