College loan consolidation is an option for post graduates carrying high debt levels. By consolidating multiple loans graduates can reduce monthly payment amounts, obtain a lower rate of interest, and eliminate the stress of managing multiple payment dates.
College loan consolidation is available for both private and federal student tuition. Private lending encompasses funds borrowed through family or friends, lending institutions, credit card companies, or SallieMae.
Federal student tuition can include Stafford, Federal FFELP, Federal Direct, Perkins and Parents PLUS. Students with federal and private loans can consolidate into one account. Federal payments must be tracked and verified, so consolidation lenders require applicants to take out two separate loans. However, students will pay one monthly payment and the financial institution monitors and reports account activity to government lenders.