Most people find it very intimidating to negotiate with a lender and thus hire a private firm if this is the route they choose.Firms that specialize in this also have many tricks in how they deal with lenders that makes them more likely to negotiate.Even if your rates seem high, t he Department of Education puts a cap on consolidation loan rates at 8.25 percent.
Read the fine print – your consolidated loan may not have the same terms as your original loans. There may be other resources that also serve your needs.
Consolidation provides grads with the ability to combine their student loans into one megaloan, but it comes with drawbacks.
Along with gaining a new degree, many graduates will also leave campus with new student loan payments they'll have to fit into their post-graduate budgets.
WARNING: It is very dangerous to consolidate federal loans into a private consolidation loan.
You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.