A private consolidation loan may make it easier to manage student loan payments after graduating by combining several loans into one, reducing the number of loan payments. It can also lead to a lower loan payment by stretching out the term of the loan (which can also increase the total interest paid over the life of the loan). Some borrowers may be able to qualify for a lower interest rate or switch from a variable rate to a fixed rate (or vice versa). Borrowers who don’t like their private student loan lender can use private consolidation to switch to a different lender.
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