Blog Archives

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.
Sell Links