All student loan consolidators are not equal, and can be very highly competitive. With just a variance of a third of a percent point can mean hundreds or thousands of dollars if you have a large balance and a good number of years before you have finally paid your balance. Student loan consolidators will lump all your student loans into one single loan, and give you a low fixed rate.

Interest rates are currently below market; there is no need for collateral, and repayment can usually begin after graduation.  However, repayment of the principal can be deferred until the student no longer meets the loan requirements of enrollment.  Even with deferring payments, student loan rates are set annually and the interest begins to accrue from the time funds are disbursed. Although private student loan rates are usually not as competitive as those for federal loans, they are often useful for independent students who have limited borrowing potential.