In that instance you’re essentially finding a private lender that will refinance your private loans.
Consolidation also opens up the door to extended repayment plans, in which your term can stretch up to 30 years depending on how much debt you have.
Consolidation doesn’t always work to your benefit, however.
Because economic crises often provoke calls for consolidation as a means of increasing government efficiency, the contemporary interest in consolidation is not surprising.
However, the review of research evidence detailed in this brief suggests that a century of consolidation has already produced most of the efficiencies obtainable.
While state-level consolidation proposals may serve a public relations purpose in times of crisis, they are unlikely to be a reliable way to obtain substantive fiscal or educational improvement.