Private College Loan Consolidation (Consolidating your Private College Loans)

It does not seem to matter which type of college or university you have attended, nor does it matter just how much financial aid you were able to muster; it was necessary to take out private loans.
Now that you have finished your education you should be looking to the future but those private loans are holding you back. If you are looking for a way to get out from under your debt without filing for bankruptcy (and completely ruing your credit) you may want to consider consolidating your private college loans. Rather than fighting your way through education debts, you could be sailing smoothly to a debt free future.
Eligibility for Private College Loan Consolidation
Private college loan consolidation has few eligibility requirements and can be relatively easy to obtain. Some basic requirements include:
Having a certain amount (usually $5,000-7,500 minimum) of private student loans
The loans should be in repayment or in the grace period
The loans should not be in default but can be deferred or in forbearance
In most cases you need to be a US citizen or permanent resident. Some lenders offer consolidation to temporary residents but have a lower range for the outstanding loans and a higher interest rate for repayment.
Borrowing on Private College Loans
Depending on the lender and your credit history, you can borrow up to and sometimes over the total amount of your outstanding private college loans. Most lenders will cap their loans somewhere between $125,000 and 250,000 for undergraduate loans; for graduate, dental, medical or law school the maximum amount may be higher.
The interest rate for private college loan consolidation is typically fairly low and is also dependent on the amount of your loans and credit history. There are usually fees for origination, processing and sometimes completion.
The term for private college consolidation loans is anywhere from 5 to 30 years and varies according to your monthly installments and the total amount of the loan.
Deferment of College Loans
Should you choose to restart your education for a higher degree, you often have the option of deferring your principle payments for the loan. This means you will be required to pay the interest on your loans but not make payments toward the cost of the loan itself. You will need to prove to the lender that you are at studying at least half-time to have your loan deferred.
Some private loan consolidators will also offer forbearance in times of financial hardship. This is not a common aspect of private loans but can be a big help if it is written into the contract.