By Mary Cala
 Student consolidation loans are among the most popular refinancing loans as they make repayment of the education loans easier to handle. Those loans are in high demand because they offer important benefits. Some of those benefits are available with both federal and private student consolidations, but some come only with the federal consolidations.
It's important to know that private education loans can't be consolidated into federal consolidation loan, but there are private lenders - not too many, though - that offer private consolidation of those private student loans.
Private consolidation loans can include federal education loans, however, including those federal loans in a private consolidation loan is usually not desirable for a number of reasons. For instance, with private consolidation, you will lose important, generous benefits of the federal loans, such as flexible repayment terms and loan forgiveness and cancellation provisions. Private consolidation will often increase your effective interest rate and you will pay much more to serve your education debt - even though you'll get lower monthly payments.
For those reasons, it's recommended to seek federal consolidation loan first and only |
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