The difference is you'll need to apply through a private lender.
Consolidation provides grads with the ability to combine their student loans into one megaloan, but it comes with drawbacks.
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.
Most also have limits on how much you can consolidate.
Know that you might need a higher credit score if you want the best rates without a co-signer.
Here's what you need to know before deciding to consolidate student loans.
Loan consolidation is when a borrower takes out a new loan to pay off several smaller student loans.Borrowers should have loan account numbers, estimated payoff dates and contact information for each of their loans' holders ready.Those seeking consolidation should also review their repayment options at Student gov, so they're prepared to pick the proper repayment plan.Once the application is submitted, the federal government estimates that it takes 60 to 90 days to officially complete the consolidation process.Consolidating private loans works in a similar fashion, as far as paperwork goes.Regardless of how the market fluctuates, borrowers will never pay more than 8.25 percent on their consolidation loans.