Consolidating student loans federal program
Instead of having multiple loans and loan payments, you have only one.You can consolidate all federal student loans and most private student loans.If your lender does not provide any benefits, you may want to consider consolidating your loans with a lender who does.If you have private student loans at differing variable rates of interest, you may be able to consolidate and get one new loan with a fixed rate of interest—a good move if rates have dropped significantly since you were in school.
This results in reduced monthly repayments and a longer term for the loan.
While the interest rate on the new loan may be lower than the higher interest rate, it will also be higher than the lower interest rate you're currently paying.
So overall you'll be paying about the same or perhaps just slightly more for your new, consolidated loan.
That's because you'll start the loan repayment clock again and it will probably be for a longer time.
Therefore, even though your interest rate is the same or lower, you'll likely end up paying more interest.