Private consolidation loans combine your existing private student loans into one larger loan. A private consolidation loan is also considered student loan refinancing.
In a private consolidation loan, you are replacing your original private student loans with a new loan. You will have a single monthly payment for your new private consolidation loan, making repaying your loan simpler.
Private consolidation loans may have fixed or variable interest rates – meaning your interest rate can change over the life of the loan. The interest rate you are offered is dependent upon your credit score and other factors.
There are many private lenders who offer private student loan consolidation or refinancing programs. When refinancing, you can include private and federal student loans. However, your new private consolidation loan will not have federal student loan benefits but may have additional benefits. Pay attention to the interest rates, terms, benefits, and other fine print when consolidating.