Interest rates in Direct federal Student Loan Consolidation versus Private Student Loan Consolidation are fixed.  The weighted average of interest rates on outstanding loans is rounded up by the nearest 1/8%.  This becomes the permanent rate for the duration of the repayment period.  In the Private Student Loans Consolidation, however, interest may be variable or fixed, based on current interest rate trends and the results of your credit history.  A negative credit history results to a higher interest rate.

Direct federal Student Loan Consolidation versus Private Student Loan Consolidation requires less scrutiny.  In Direct federal Student Loans, basic requirements apply, such as total amount of loans to be consolidated, academic level standing of borrower and maturity status of existing loans. In the Private Student loan Consolidation, however, a credit history check is required as well as the presence of an authorized co-signer. BAD CREDIT & NO COLLATERAL & NO CO-SIGNERS - No Problem - Find out How

Maximum loan-able amounts in Direct federal Student Loan Consolidation versus Private Student Loan Consolidation is more clear-cut and set depending on the type of Direct federal Student Loan Consolidation program availed.  In the Private Student Loan Consolidation program, total loan-able amount is variable, depending on the result of the credit check.

Repayment schemes under Direct federal Student Loan Consolidation versus Private Student Loan Consolidation offer benefits like forbearance and deferment in consideration of financial difficulties. The latter type, does not. Grace periods may also not be available under the private student loan consolidation plan.