Private Student Loans Consolidation At A Fixed Rate – is it possible?

The answer is a certain YES. Luckily, there is a way of consolidating your private student debts as well as your student loans too.

Knowing this, what you need to do is consolidate any federal student mortgage you may have first, then can you may merge all your private student loans. You'll definitely save a lot of money through this. The result is lower interest rates with only one or two lower periodic payments, and you'd have greatly improved your credit standing.

Consolidating your private student loans means merging student financial aid loans that are non-federal excluding Perkins and Stafford. Fortunately, you can also take in other amount outstanding in this private student debt consolidation, like credit card debts as long as they were used for your education.

Anyway, be certain that you do not merge all of your federal and private student mortgages. Doing do leads to losing out on some savings with the interest rates you'll otherwise have acquired. You can still merge all your private and federal mortgages but do them individually. Doing so saves a lot of money.

How you can Consolidate Private Student Loans at a Fixed Rate

These days, money problems are no longer a hindrance for someone aspiring to go to college. Many financial aid plans are available for students to take advantage so they can fund college education. They include federal and private student loans. It is however, the borrower’s responsibility to practice effective financial intelligence so as not to become a victim of a debt trap.

Multiple debts can be stressful especially for students. Many shift their focus from how to stand out in class to how to pay education debts. The good thing is that, there are ways on how to solve this predicament.

You see, after college, you'll be starting a new life and it will be very hectic for you. Can you imagine yourself after graduation still managing to handle a number of loans you would have up your sleeves?

An option that eases this stress is choosing to merge your loans if you maintain various debts with a number of lenders. There are several reasons why students opt to consolidate or merge their private student loans. Consolidating your student loans means that you'll look for a legitimate creditor to accumulate all of your student debt into one manageable loan. That way you don't have to maintain a number of loans and payment, you'll just have to be responsible in making one payment to one lender.

Benefits of Consolidating Private Student Loans

Consolidating your private student debts lets you enjoy several great benefits.

First, lower payment is guaranteed. Consolidating your mortgage you will let you get the stress off your head by setting your periodic payments lower than your previous post-consolidation payments.

Second, you only make one payment to a creditor not two or more. Rather than worrying because of your various student loans and resulting payments, you will only be responsible to one simple periodic payment.

Third, you can enjoy a low fixed interest rate. When you merge your private student loans you will have a lower and fixed interest rate, which will lower your long term and general payments to your creditor.

Lastly, merging your private student loans improves your credit standing; in that it combines your mortgage the better your credit record will appear to creditors.

Types of Student Loans that can be consolidated

Almost any federal loan, be it Federal Family Education Loan (FFEL) program or the Federal Direct Loan program, can be consolidated.

The second common category of student loans is “private loans”. These are student loans issued by private lenders such as banks. They are not subsidized or guaranteed by the government. They cannot be consolidated under federal loan consolidation guidelines, but you can find private consolidated loans.

Another thing to note is that, if a student took out loans in his or her name, those loans cannot be combined in a consolidated loan with those loans the parents took out for him or her student. If the borrowers are different, the loans will stay separate.

Majority of federal education loans can be consolidated, including the following:

• GradPLUS Loans
• Direct GradPLUS Loans
• Perkins Loans
• Federal Consolidation Loans
• Stafford Loans (“subsidized” and “unsubsidized”)
• Direct Student Loans / “Ford” Loans (“subsidized” and “unsubsidized”)
• Parent Loan for Undergraduate Students (PLUS)
• Direct Parent Loan for Undergraduate Students (Direct PLUS)
• Federal Direct Consolidation Loans

...as well as other less common types of federal loans.

Private student loans (or alternative student loans) can also be consolidated but they must be consolidated separately from federal student loans.