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Debt consolidation for private student loans may be tough to find
By Sam Craine on May 10th, 2010
After a number of questions from students wondering about private student loan debt consolidation, an expert in this area provided an answer to the New York Times' Bucks Blog.
Lauren Asher, president of the Institute for College Access and Success, wrote in the blog that the majority of private lenders are not offering debt consolidation for privately originated student loans because of credit difficulties seen in the economy during the recession and beyond.
"If you were able to find a private consolidation loan, it would likely have a variable interest rate, so it wouldn't allow you to lock in today's low rates," Asher said.
Loans that don't offer a variable rate could help students by lowering the amount of interest they have to pay over time. Furthermore, it could allow them to pay off their debt more quickly, which could also lead to savings.
When taking on student debt, consumers should also keep in mind that they can't erase it with bankruptcy. However, legislation has been presented that would allow people to do so.
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