How to Consolidate Student Loans

  1. Make sure your credit history is in proper standing. This can help you get more favorable terms.
  2. Get a copy of your free credit report from one or all the three major agencies (Equifax, Experian and TransUnion). Check it for accuracy and ensure that you fix any problems.
  3. Run your numbers through a few different loan calculators to see if you'll take advantage of a direct student loan consolidation. There are many of these calculators available on the web.
  4. For federal consolidation, you can apply online. Federal loans ought to be consolidated separately from private loans, as the rates and terms for federal loans are far better.
  5. For private loan consolidation, it's highly recommended to talk to a loan counselor first.
  6. Shop around. Call your bank plus some local lenders. Look around on the Internet, as well. There are thousands of companies that offer personal loan consolidation.
  7. Compare their loan terms and run your numbers through some calculators again to select a private consolidation lender that is most favorable for you.