Is consolodating my student loan smart
The key terms for federal consolidation loans do not vary by lender: no application or origination fees are allowed and there are no prepayment penalties.
Federal law sets the period of time for paying back the loans and sets a ceiling on the interest rate.
Private consolidation lenders, on the other hand, are not subject to those terms and may include variable rates and any number of fees.
What's more, some benefits of a federal consolidation loan, such as interest subsidies on deferred loans, are not available on private loans.
Yet despite the appeal -- and its popularity -- student loan consolidation isn't for everyone.