Regardless of how the market fluctuates, borrowers will never pay more than 8.25 percent on their consolidation loans.Private loans can typically only be consolidated with other private loans.Those seeking consolidation should also review their repayment options at Student gov, so they’re prepared to pick the proper repayment plan.

“The downside of getting a lower monthly payment is that you’re going to subject yourself to substantially more interest charges over the life of the loan,” he says.

But borrower protections and repayment options on private consolidation loans can vary wildly from lender to lender.

Betsy Mayotte, director of regulatory compliance for the student debt assistance group, American Student Assistance, makes sure to tell borrowers to stay away from consolidation loans that combine federal and private loans.

Almost all types of federal loans can be consolidated.

Borrowers should have loan account numbers, estimated payoff dates and contact information for each of their loans’ holders ready.