Get cash back for consolidating your student loans
When you consolidate, a lending institution pays off your existing balances and replaces them with a new, consolidated loan.
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.
This simplifies your bill-paying process each month plus reduces the total amount you owe to your creditors.
Some other good general info from the previous (now archived) thread on consolidation deals: FAQ Q: What are the benefits of consolidation?
A: 1) lenders offer incentives for consolidating loans with them as listed above.
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.