Why can't a borrower consolidate private student loans and Federal Stafford loans together?

First I am not positive that you cannot do such. If that does hold true it could be due to a variety of details including: - interest rates for Federal loans are set by law and are standard across the board. The financial institution you have your private loans through could vary - payment terms may also verify between the two Private loans are secured by an individual's credit worthiness or his cosigner's. Federally back loan are secured by The united States Department Of Education. Loan amounts vary depending on each student needs, the cost to attend and ability to pay back. You will never be able to consolidate federally backed and private loans with a federally back consolidation loan. However, you will be able to combine them all with a private consolidation loan.