Consolidating private student loans blog

My reaction upon first learning about student loan consolidation roller coastered from, Needless to say, I covered the gamut of emotion.

After years of hearing about the unforgiving nature of student loan debt (no bankruptcy, fewer options for forgiveness, etc), an opportunity to lower monthly payments (and potentially lower interest rates) seemed almost too good to be true.

Federal student loans are usually consolidated through the federal government and the interest rate is calculated by using weighted average of all the federal loans being consolidated.

Private student loans (and occasionally federal student loans) are consolidated by private lenders and the new interest rate offered will be dependent on your credit score. Check your rate using Ready For Zero's free debt consolidation tool.

But after researching and reviewing the opportunities available, I started to understand more about the various options and also more about who specifically can benefit.

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