Gather all of your monthly loan statements and create a list with the following information:


The lender.
The amount you owe.
Your monthly payment.
The length of the repayment period.
Whether the loan is federal or private.
 People consolidate their student loans for different reasons, and the reason matters for purposes of how you consolidate. Consider the following:


You want to consolidate because you are overwhelmed with paperwork. In this situation, you can consolidate some loans through the Department of Education. You won’t lower your interest rate at all. Instead, the new consolidated loan will be a weighted average of the interest rates on all of your loans.You want a lower interest rate. You’ll need to pursue consolidation with a private lender. A lower interest rate will decrease the amount you pay each month. It will also reduce the amount you pay back over the life of the loan (unless the term of the loan is longer).
You want a lower monthly payment. Generally, you should consolidate with private lenders. However, if you consolidate with the Department of Education, you can seek income-driven repayment plans or extend the repayment period, both of which will lower your monthly payment.
 Some of the more popular lenders include SoFi, CommonBond, and Citizens Bank.Typically, you’ll need a credit score in the mid-600s, so pull your credit score.Check the interest rates offered by each lender. Fixed rates range between 2-9%. Variable rates might be initially lower, but they can zoom up in the future.
 There are many people who can help you decide which consolidation path is right for you. Talk to your current lender and discuss your options. Consider asking the following questions:


“Are all of my loans eligible for consolidation?” Most federal loans can be consolidated with the Department of Education. However, private lenders set their own rules.
“If I consolidate my loans with the Department of Education, do I lose anything?” For example, you might lose any credit you have earned if your loans are currently on an income-driven repayment plan.“Can I consolidate if my loans are currently in default?”

, Gather your student loan information. If you are applying for a private loan, you’ll need information about your financial history: job history, current income, educational background, etc.To consolidate with the Department of Education, go to www.studentloans.gov and use your Federal Student Aid ID to log in. You’ll pick which loans to consolidate and choose a servicer. You’ll also pick a repayment plan, which can run from 10-30 years, but income-driven plans are available also.
To apply with a private lender, you should submit information about your financial background and your student loans. They will make a decision based on this information and your credit history., Your financial difficulties might be temporary. If so, consider different options that will give you some breathing room. There’s no reason to consolidate if you don’t need to.


You might seek deferment or forbearance, which will allow you to suspend payments on federal loans for a period of time. Contact your lender.
You might also qualify for income-driven repayment plans on federal loans. Although you can choose these plans after you consolidate, you can also choose them without consolidating. On these plans, you might only pay 1-2% of your disposable income. As your income increases, you can pay more.
List your student loans.
Identify your goals.
Find private lenders.
Ask questions.
Apply.
Consider other options.
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