Private Student Loan Consolidation

Add up your private loan balances to find the total amount owed. Keep any federal loans separate, as those can be consolidated at a lower interest rate or paid off by themselves.

To consolidate, some lenders require a minimum of $5,000 in outstanding balances; other institutions have a $10,000 minimum. Knowing your loan balances will help you decide where to apply.

Note the interest rates you are currently paying for your loan consolidation.

If you took out your loans when rates were high, and current rates are lower, it will make sense to combine and refinance these loans. However, if the opposite is true, you would likely pay more in the long run after consolidating than if you stuck to your lower-interest-rate loans.

Research the requirements of potential loan consolidation institutions.

For example: Citi Student Loans requires a co-signor for undergraduate loans. They have a $7,500 minimum, $275,000 maximum for consolidations. There is no prepayment penalty, and they offer slight interest rate deductions after four years of on-time payments.

The consignor can be released after 3 years if certain requirements are met. Wells Fargo Private Consolidation Loan has a $5, 000 minimum and $40, 000 to $100, 000 maximum, depending on credit with up to a 15-year term. A 0. 5% interest rate reduction following 48 timely monthly payments.

Apply online, entering the information on each college loan you want to consolidate. You'll also need your income information, social security number and contact information for the application.

Expect a few days to pass before learning if you've been approved for the private student loan consolidation.

Once approved, it may take as long as 45 days to process the consolidation, paying off the individual loans to leave you with one monthly loan payment -- hopefully at a lower interest rate or at least lower monthly payments.