Private student loans, on the other hand, are administered by banks and other financial institutions, and the interest rates for these loans tend to be higher and they can be raised over time.Private student loans may be eligible for forbearance programs - which means you may be able to suspend payments due to economic hardship, but during those periods your loan will continue to accrue interest.
Under the Direct Loan Consolidation Program, you can consolidate Subsidized and Unsubsidized Stafford Loans, Supplemental Loans for Students (SLSs), Federally Insured Student Loans (FISLs), PLUS Loans, Direct Loans, Perkins Loans, Health Education Assistance Loans (HEALs), and just about any other type of federal student loan.
Along with gaining a new degree, many graduates will also leave campus with new student loan payments they'll have to fit into their post-graduate budgets.
Here's what you need to know before deciding to consolidate student loans.
WARNING: It is very dangerous to consolidate federal loans into a private consolidation loan.
You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.