Private student loan consolidation

Private student loan consolidation Information

If you have several private student loans, chances are you are juggling different payment dates, amounts and interest rates. With the ease of a private student loan consolidation, many of your worries can be put to rest.

Private student loan consolidation allows borrowers to combine the student loan debt they acquired during their studies. In return, the borrower gets a single payment date and payment amount with a single interest rate. Also, when student loans are consolidated, it resets the term of the loan. These factors can actually help students to pay off their college loans sooner and in some cases even lower their minimum payment.

Most private student loan consolidation programs offer students a free application process with no early payment penalties. Borrowers can also take advantage of the online application process that yields fast results.

A variety of payment options are also part of the private consolidation package. Students can generally choose from interest-only payments for an initial time-period of their loan. This allows for lower monthly payments so the borrower has time to become established as a professional before the larger payments come due.

Interest rates for private student loan consolidation are determined by the student’s credit score. Depending on the scenario, this can be good or bad for the borrower. The student must also qualify, based on credit, for the consolidation.

It is important to note that students with both federal and private student loans do not have the option of consolidating both types together. Instead, a borrower is required to combine the federal loans into one payment and the private loan into another, making for two monthly payments.

When considering a student loan consolidation, begin researching with one of your current lenders. Discuss loan programs with a customer representative and compare your options before diving into the program.

To learn more about private student loan consolidation, visit our college finance website at PrivateStudentLoan.org