| Before you consolidate your student loans, you | | | | eligible for tax deductions. If you consolidate them |
| should research your situation and be sure you know | | | | with private loans you will no longer be able to claim |
| what consolidating them will do. For instance, while it's | | | | your interest which could amount to hundreds of |
| usually a good idea to consolidate both your federal | | | | dollars in tax deductions every year. Overlooking this |
| or government school loans and your private school | | | | would be a costly mistake. |
| loans, they should never be consolidated together | | | | To be sure you're not making a mistake by |
| into one loan. The reason for this is simple. | | | | consolidating your loans, take the time to research |
| Federal loans have many benefits when consolidated | | | | the facts and check with a few different lenders to |
| that you don't get with a private loan. Consolidating | | | | see which is best for your student loan situation. |
| them together causes your loans to become a single, | | | | Don't pick one to consolidate with until you're |
| private consolidated loan, forfeiting all the benefits of | | | | satisfied you'll be taking full advantage of as many |
| the federal loans. | | | | loan consolidation incentives as possible. |
| For example, when you consolidate federal loans | | | | If you can, try to get your fixed interest rate as low |
| you're eligible for lower, fixed interest rates that are | | | | as they'll go on the federal loan, and set up the |
| not always available with private loans. Consolidating | | | | payments so you are paying as much as you can |
| the two together will prevent you from locking in | | | | afford each month. This way your loan will be paid |
| your interest rate because you'll lose the government | | | | off as soon as possible. |
| guarantee that's attached to all federal loans. Then | | | | Unfortunately you won't have as much flexibility with |
| your rates will be subject to change, and can | | | | your consolidated private loan. Which, of course, is |
| potentially get much higher. | | | | why it's recommended that you consolidate federal |
| Also, interest paid on consolidated federal loans is | | | | loans separately from your private loans. |