The consolidation of Private Loan or alternative source of loan primarily aims at reducing the number of loan repayment installments to one conveniently payable loan installment at the lowest interest rate. A Private Loan Consolidation cannot be combined with a Federal Loan Consolidation as we will lose out on the favorable terms of a Federal Loan. Well certain eligibility requirements like loan balance, credit worthiness, and income to loan ratio, work history and few others are to be satisfied to qualify for a Private Consolidation Loan. In detail they are as follows:

• Hold one or more private loan for students
• The outstanding loan amount should be minimum $7,500 and a maximum of $300,000
• You should be within 2 years of graduating
• Should be very much in the valid repayment period of the existing loan or grace period or deferment period
• You should be more than 18 years of age, in the case of a cosigner he/she should also be more than 18
• Both you and the cosigner should be US citizens or permanent residents with a US address
• You should have been in the verifiable address for 2 years
• You should be in a stable employment
• Employment verification details required
• You should have been in employment for 2 years
• Positive credit score and credit worthiness in the past two years
• Should have a minimum income of $18,000 either individually or in combination with the cosigner.
• The private loans consolidated should satisfy the IRS definition of qualified educational loan.

The time of repayment depends on the outstanding loan balance up to a maximum of 30years. Two types of repayment plans are available a Regular Principal and Interest Repayment and the other interest only repayment for 24months and later converted into principal plus interest loan repayment. Generally these consolidations are done without charging any processing fee. The eligibility requirements presented could vary depending on the lender’s policy.