The process of combining number of private student loans you own to a single loan with lower interest rates is known as private student's loan consolidation. This will help you to budget your finances more efficiently because you are free from the hassle of making a series of payments to individual private lenders.
Your monthly payments will be greatly reduced with an extended repayment schedule. In case your credit situation has improved, you are likely to get your consolidation rates much lower, on the other hand, there is no chance that your existing lenders will reduce their rates, thus by consolidating you can save more.
A borrower can apply for student consolidation on his own or with the help of a co signor with good credit standing and accordingly he will receive loans at good rates
The term of consolidation will vary with each student. Usually undergraduates will get a repayment period of 25 years whereas graduates might get up to 30 years. Either way, the monthly installments will be vastly reduced.
Most private loan consolidators also make it possible to repay in excess without charge, i.e. any surplus paid will go towards the principal amount. Those in the medical and dental fields stand to gain a bit more in that they get a 48 month deferment for payment and military personnel are eligible for the same for a period of 36 months.
One thing to remember is that private loans cannot be consolidated with federal loans. Your grace period or the time immediately after your graduation is the best time to consolidate your private loans because the rates of interest are lower mostly during this time.
Private loan consolidations are possible at fixed rates as well as at fluctuating rates, therefore you need to do some research on both to arrive at a conclusion as to which one would suit you the most.