After the student is out of school either by graduating or simply not attending anymore, that student should consider private student loan consolidation. Why consolidate private loans? The Benefits include:

Combines all loans into one and reflects a positive payment history.

Private consolidation improves your credit score.

Combine all debt used to pay for your education, including high rate credit cards.

Most importantly, to save more money each month, private student loan consolidation can cut payments by as much as 50%.

Private loan consolidation saves you money by giving you a competitive interest rate against non-government loans. For example, a graduate recently called us and informed us that they were issued a private student loan by Citi-Bank with an interest rate of 14%. Another graduate mentioned that they had received a Sallie Mae Signature Loan with an interest rate of 22%. These graduates would benefit from the significantly lower rate.

Private student loan consolidation provides a way to consolidate virtually all private, non-federal education borrowing. With a private consolidation loan, you can consolidate your education-related debt and education-related credit card debt. By consolidating, you'll write fewer checks and may have a lower monthly payment. Moreover, Private Consolidation Loans can be used to consolidate all education-related debt, including all private loans used for education-related expenses as well as any federal student loans.

Loans you can consolidate include:

Private education loans (any non-government education loan)
Loans from retirement plans
Loans from insurance policies
Home equity loans
Credit cards or loans used for computer purchases
Loans used for travel expenses for school

WARNING: While your federal student loans can be included in a private consolidation, you may want to consider a federal consolidation loan as it is subsidized by the government. Federal consolidation loans generally have a lower interest rate and more benefits.

Private student loan consolidation has a higher interest rate than federal student loan consolidation, so if you have federal student loans which are eligible for federal consolidation, do that instead. You'll save more money and get more benefits.