Why to Never Consolidate Federal and Private School Loans Together
Before you consolidate your student loans, you should research your situation and be sure you know what consolidating them will do. For instance, while it’s usually a good idea to consolidate both your federal or government school loans and your private school loans, they should never be consolidated together into one loan. The reason for this is simple.
Federal loans have many benefits when consolidated that you don’t get with a private loan. Consolidating them together causes your loans to become a single, private consolidated loan, forfeiting all the benefits of the federal loans.