Private Student Loan Consolidation

February 20, 2012

Private Student Loan Consolidation

Utilizing private student loan consolidation can allow you to gain back control of your debt situation as well as help you get out of debt much faster. The act of consolidation will allow you to group all of your private loans into one single monthly payment instead of having to worry about paying multiple creditors, which it also includes only one interest rate which consolidating loans often times brings lower interest rates due to the fact that private loans most always have higher interest rates compared to federal student loans  Lower interest rates through private student loan consolidation will mean that more of your monthly payment will go towards paying off your debt and less that you have to pay just to cover interest.

private student loan consolidation

The good news about private student loan consolidation is almost any debt can be consolidated, as anywhere from $7,500 to $100,000 for undergraduate loans and anywhere between $7,500 to $150,000 for graduate loans. Consolidating private student loans usually only takes around 45 days for the process to be complete.

It should be known that your interest rates are heavily based off of your credit score so it is advised to either have great credit when applying or find an individual with a solid credit score who can co-sign for you. This co-signer doesn’t have to be an intermediate family member, it can be a relative or friend but the loan will be in their name so it is very important to make your private student loan consolidation payments on time as late payments will adversely affect your co-signers credit score. The consolidation loan can be transferred to your name after a certain amount of on time payments, usually 12 to 18 months, which then you will be able to make payments under your name and build your credit score as well as keep the interest rate that you attained when your co-signer took out the loan for you. A good credit score also gives you a much better shot in gettin g

Monthly payments can be reduced through the act of private student loan consolidation as well, but with a price as to reduced payments the repayment period must be extended leaving you in debt longer as well as paying more in interest.

Companies Offering Private Student Loan Consolidation

NextStudent is known to offer great terms as well are an honest lender in private student loan consolidation service. You can also consider going through larger banks like Citibank, Bank of America, Washington Mutual among others. No matter who you go through, you can verify their reputation by contacting the Better Business Bureau whom maintain a database of most all consolidation providers.

At the end of the day, your lenders are going to be demanding repayment 6 months after your schooling has concluded, if not before which the chipping away on your student loan debt begins. Which after the 6 month deferrment period, you are aloud to consolidation your student loans. Private student loan consolidation can allow you to chip away a lot faster, putting you on the fast track towards paying back your student loans and becoming debt free.

 

Category: Credit Card Consolidation

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