Gather information about all of your private student loans. Different companies likely issued your loans as you progressed through your college years.
Determine whether your private loans are eligible to be consolidated, because some lenders restrict consolidation. You can read through your loan documentation or contact a customer service representative from your lender.
Compare options with many lenders, especially because you generally can consolidate loans only once. If you consolidate today and interest rates decline significantly over the next six months, you are stuck paying the rate you received when you consolidated. Alternatively, if rates increase, you pay the interest rate determined when you consolidated.
Review potential consolidation fees such as origination charges. Avoid consolidating with companies that charge prepayment fees, which penalize you if you pay the loan off early. Most major companies are legitimate and do not charge excessive fees, but consolidation scam artists and unscrupulous companies do exist.
Consult with experienced professionals, such as certified public accountants and financial aid officers, just as you would seek advice before signing a mortgage. Your loan consolidation paperwork will span several pages and include different type sizes plus finance terminology. Once you sign the consolidation agreement, you have entered into a legally binding contract.