Private student loans do not qualify for the federal loan-consolidation program, which offers the most attractive interest rates. Although private loans may be consolidated, rates are generally higher and variable, based on a benchmark such as the prime rate or the three-month LIBOR rate. LIBOR stands for London Interbank Offered Rate and many adjustable rate loans are tied to this rate of interest.

Depending on the lender and your credit rating, you might qualify for a rate as low as prime plus 0% or as high as prime plus 9% or more (ask if the margin can change over the term of the loan). Many lenders also charge a fee of 1 to 10%, which is added to the principal.

Even if you cannot cut your rate significantly, consolidating private loans offers the convenience of writing a single check. Stretching out the term of the new loan lowers your monthly payment (although you will pay more in interest over time).

Make sure there is no prepayment penalty if you want to pay ahead on your loan as your income rises. For an overview of loan-consolidation terms offered by a number of private lenders, start at www.finaid.org.

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