Consolidation doesn’t always result in a lower interest rate, plus lower monthly payments usually means paying the loan over a longer period of time and spending more on interest.
You also need to know that the process is different for federal student loans and private loans, especially if you’re trying to manage each.
Although the Perkins Loan program came to an end in September, 2017, old Perkins Loans are still eligible for consolidation, as well.
Rather, the new rate is a weighted average of all the interest rates on your student loans, plus a small percentage on top.
If you want to explore private student loan consolidation, you’ll need to work with a private lender.
Requirements and eligibility will vary from one to another.
Be sure to explore all your options and weigh which benefits – those provided by your original loans or those you could access with direct consolidation – will help you the most.
Private loans are not eligible for Direct Consolidation Loans.