Now, if you have private student loans, you also have private loan-consolidation options.
They work much like a federal consolidation loan, except they also take into account your credit score when determining your interest rate.
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Student loans usually appear on a credit report as multiple loans, but that doesn’t look bad to lenders.
Let’s look at an example of getting a federal consolidation loan—you can also get a private consolidation loan if you have private loans, but we’ll get to that in a minute. Fifteen thousand dollars in subsidized loans with a 3.5% interest rate, and then two different unsubsidized loans: a loan of $20,000 with a 4% interest rate, and a loan of $15,000 with a five percent interest rate.