When you consolidate you will have the option to select a new term length and interest rate type.
You can also consolidate federal and private student loans together.
Your new loan typically has a lower interest rate, saving you money, or a lower monthly payment, making repayment more manageable.
We’ve created this guide to help borrowers better understand the emerging student loan refinancing and consolidation industry.
However, you may be able to consolidate your current (Sallie Mae) loans with another company.
There are over ten different companies that can consolidate private student debt.
Federal loans may be consolidated through any federally approved private lender such as Sallie Mae or the Student Loan Consolidation Center.
Direct Loans from the government may be consolidated through a federally approved private lender or the Department of Education.
But you may benefit even more if you consolidate your student loans at the new rates, which will be in effect for a 12-month period through June 30, 2003.
The sooner you pay off your loan, the more you save.
You're even free to pay more than the required monthly amount if you wish.
In terms of providing immediate payment relief, however, "loan consolidation can be a really good debt management tool," said Martha Holler, a senior director at Sallie Mae.
If your goal is to save money over the long haul, locking in a low interest rate now without lengthening your repayment period is the way to go.