 TITLE: Consolidating Student Loans: Should You Do It? CONTENT: Can I Consolidate Student Loans?\n--------------------------------\nThere are two types of entities that can consolidate student loans for you: private companies, like banks and online lenders, and the federal government. How to qualify depends on the type of consolidation you pursue. Let's break them down.\n*   **Student loan consolidation through a private company**: The goal of privately consolidating loans is to lower your interest rate. It's also referred to as refinancing. A private lender will pay off your current loan or loans and issue you a new one for the total balance you'd like to refinance. You can qualify for a new interest rate and terms based on your credit score, income, employment history and other financial factors. It's possible to refinance private loans only, federal loans only or both together. Your new loan will be private.\n*   **Student loan consolidation through the federal government**: The federal government also offers a consolidation option, but there's no credit check required, and it won't give you a lower interest rate. Instead, federal consolidation is a strategy to qualify certain loans for programs like income-driven repayment and Public Service Loan Forgiveness. You may also choose to consolidate federal loans if you want a single monthly payment or a fixed interest rate, since some older loans have variable interest rates. Your loans will stay federal. END