Fed Financial

What is the best option for consolidating private student loans?

I have both federal and private loans that need consolidation, I'll take any advice I can get. Thanks so much

Public Comments

1. If you can afford to, consolidate them by source (all federal together, all private together). Having two payment is a pain, but often private loans are at a higher interest rate than federal. Even 0.25% can be a lot on tens of thousands of dollars. You can typically apply online for consolidation once you're out of school. I included links for Direct Loans and Sallie Mae, guessing you may have one of them. Good luck!
2. What is the best option for consolidating private student loans? Fleeing the country and changing your name. ;) I'm joking...just giving you something to make you smile despite your piles of debt. OK, first: BEWARE, BEWARE, BEWARE! Beware of interest rate traps, and read ALL the fine print. Almost without exception, the best way to kick debt is to make somewhat larger payments for a shorter amount of time, rather than paying $50 a month until you're 90 years old. Opting for larger monthly payments does pinch the wallet, BUT it accomplishes at least two spectacularly wonderful things: 1. You get the debt OUT of the way sooner, losing far LESS to interest, and 2. When that happy day finally comes, and you've written that final check, you'll be so used to forking over a large monthly payment, that when you no longer HAVE that payment, you'll feel rich as a king! :) And you'll be smart as one too (uh, if king are smart--HA!) GOOD luck. And remember, a good education is almost always worth every penny. ;)
3. sallie mae
4. Yeah, Sallie Mae. They let you consolidate fed *and* private, and they've been around forever. Watch out for the fly-by-night and web-only consolidators.