Does consolidating student loans save money
Moreover, private loans and federal loans can't be consolidated together, Kantrowitz said.
As with the Stafford Loans, there are both Direct and FFEL consolidation programs.
To a college grad swamped with multiple student loans that have come due, loan consolidation is an enticing option.
For example, a $20,000 Stafford loan on a standard 10-year repayment with a 6.8% interest rate would require a monthly payment of $230, and the total interest paid over the life of the loan would be $7,619, he said.
But if a borrower locked in the interest rate of 2%, payments on the loan would be $184 a month, and total interest paid would be $2,083 over the same 10 years.
LOUIS (Market Watch) -- Former students who consolidate their federal student loans can get a good education in saving money.