Chances are if you’re dealing with student loan debt, you’re not just dealing with one loan. And if you couldn’t cover the costs with federal loans, you very well may have turned to a private lender, such as a bank or other lending institution (e.g., Sallie Mae) to fund the rest of your expenses.
But before you head down that road, here’s what you should know.
If, like many college graduates, you have multiple student loans, you’ve probably heard the term “student loan consolidation” thrown around more than once when talking about repayment options.
Consolidation companies and programs can offer several benefits in additional to simplifying the repayment process.
Borrowers should thoroughly research the interest rates for their existing loans and any forgiveness or deferment benefits attached to their existing loans before consolidating loans.
Simply put, this is the process of combining your multiple student loans into a single, bigger loan, possibly with a new lender.