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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.

 

Private Loan Consolidation – A Guide in Getting the Best Deal

October 19, 2011

Private Loan Consolidation for Students

If you want to finish up a degree, then you have to know that private loan consolidation for students can be of huge help to you when it comes to paying off your educational expenses. You have to start applying for this type of loan if your aim is to get some help in terms of financing the course that you have chosen. If you qualify for private loan consolidation, then it is best for you to combine multiple loans. This is a major help in alleviating worries and in reducing the stress associated to paying more than one monthly loan bills. The good thing about this is that you are also given the opportunity to manage your monthly budget, as the amount that you need to pay each month and the rate of interest will be significantly reduced.

Private Loan Consolidation

Private Loan Consolidation Benefits

If you decide to avail of a private loan consolidation service for students, then expect to receive a number of benefits. Below is a list of the many benefits that a student may enjoy upon taking advantage of private loan consolidation:

 

  • Private loan consolidation gives you the opportunity to combine all of your loans into one. This is considered to be extremely useful if you have a lot of outstanding loans that are designed specifically to fund your educational needs. This will allow you to face the least amount of stress because you will no longer worry about where to find the money to pay off different loans. With private loan consolidation, paying off all your financial obligations can be done within just a single payment. This is also a major help if you do not want to spend too much time keeping track of multiple loans.

 

  • Private loan consolidation allows you to enjoy a significant reduction on the rate of interest for your loan. If you do not consolidate your loans, then there is a great tendency that you will be spending a substantial amount of money for the interest. It is even greatly possible for you to spend several years paying for the interest before you can start reducing the principal balances of each of your loans. Through consolidation, you will only be required to pay the interest of a single loan.

 

  • If you finish up a degree in the dental or medical field, then the private loan consolidation can offer you deferment options. Through consolidation, there is a great possibility that you will get a deferment of up to four years. This will allow you to first establish your career and improve your financial status before you start paying off your loans. This will definitely help you out in easing your financial burden.

 

  • The repayment terms in private loan consolidation can be expected to help in making the loan payments more affordable. If you consolidate your loans, then there is a great possibility that the repayment terms will be extended. Say for example if you have loans that are required to be paid after five years, the private loan consolidation can help you out in extending it up to ten or twenty years. This is a major help in your attempt to significantly reduce the amount that you need to pay each month.

School Loan Consolidation – Overview & Companies

September 23, 2011

School Loan Consolidation

School loan consolidation can be done for many types of loans pertaining to schoo like college, vocational school among many others, and can be done on both federal loans as well as private loans. If you aren’t familiar with how school loan consolidation works, the basic overview of the process consists of a consolidation company essentially paying off your school loans, and then you pay a monthly payment to them only.

school loan consolidation

The school loan consolidation process not only will allow you to only have to worry about paying one company, but also can result in lower monthly payments and debt total as consolidators try to negotiate a lower debt as well as lower interest rates, and offer longer repayment terms which can mean lower monthly payments.

Althoug this can be great for some, it should only be used for certain debt situations which are discussed below. ALso discuseed is how your rates are created and some of the benefits as well as tips to follow and companies to use if you choose to use school loan consolidation.

Who Should Use School Loan Consolidation?

If you aren’t having trouble paying your student loan payments each month than the act of school loan consolidation will probably not benefit you, but if you can’t afford them, then consolidating will drop your monthly payment total by providing you with a longer repayment period, which lowers the monthly dues but means that you will pay more in interest because of more years of repayment.

Another alternative to school loan consolidation is the Income Based Repayment Plan (IBR) available now on most all loans. This is where you pay a monthly fee of what is usually around 15 percent of your income. It should be known that once someone choose to use the Income Based Repayment Plan, their repayment period is immediately set to 25 years from when the opted to use it, but you can use the IBR and pay it off faster when you have more income coming in each month. If at the end of the 25 years, you have debt left, it is wiped away and taxed as income.

School Loan Consolidation – How It works & General Information

  • The rate that you will pay for school loan conslidation is based of this equation; It is the difference between your gross income and $16,245 which is considered to be 150 pecent of  a poverty level of income.
  • First off federal school loans cannot be consolidated with private student loans they must be consolidated seperately.
  • One of the main benefits of fedeal school loan consolidation is not credit based so pretty much anyone can qualify without having to provide a cosigner as private student loan consolidation needs you to provide a good credit score.
  • If a parent of relative co signed for a loan, the co signers name can be taken off the account after about 2-4 years after a person starts school loan conslidation. This provides a chance for the student to start building a credit score as well as makes the  co signer no longer liable.

TIPS For School Loan Consolidation

If you choose use a school loan consolidation company, here are a few tips that can help you along the way.

  • First off, a few questions you should ask the potential consolidator if there are any prepayment penalties, these restrict your from paying over the minimum and you don’t want these, are there activation fees which are fees for starting the service and can be avoided through certain conslidators like non profit organizations, and what is the maximum repayment term and maximum interst rate.
  • Compare different school loan consolidation companies before filling out any personal information. This can help you find the best interest rate, as well as a good lender.
  • Do your best to consolidate your school loans during your grace period as interest deductions are usually granted during this period/
  • Interest rates change on July 1st of each year so stay knowledgable on what is going on with interest rates, and if they are looking like they are goin up, then it will be a good call to go with the current interest rate, and vice versa.

School Loan Conslidation Companies

Here are some companies that have proved reputable for school loan conslidation, and are worthy to check out if you are going to consolidate.

  • Next Student
  • Loan Approval Direct
  • US Department Of Education
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