Student loan consolidation is when students combine their several smaller student loans into one and repay it with equal monthly installments. Before you opt for student loan consolidation, the student borrower may have several student loans to pay back and track. After consolidation, you will have one loan to worry and do not have to worry about keeping track of numerous loans. Before you consolidate your loans, it is imperative to have an understanding on what is expected of you. There are many factors you will have to consider:
- Interest charged
- Total amount paid after the loan is fully repaid
- The length of the loan
A private student loan consolidation combines several private loans into one and this is to give the borrower a chance to manage his or her loans more effectively. It is somewhat similar to traditional refinancing. However, this is different because a larger loan is taken to repay all existing smaller loans. Private student loan consolidation can help the borrower streamline the loans replacing several small payments with a large one, and stretching the duration of the loan. When the length of the loan is stretched, the interest rate charged on the borrower is reduced. We are a reputable firm that will link you to many lenders in our network who will finance your loan.
- Private consolidation loan can have variable or fixed interest rates based on the income to debt ratio, current credit score, among other factors. These loans are usually based on prevailing market conditions.
Advantages of Private Student Loan Consolidation
1. A less than stellar credit score is not a problem
A common misconception among many people is that student loans are for younger students who are still at school or have recently graduated. The age of the student loan holder varies from one state to another. It is essential that you understand student loan laws and regulations in your state. Since many loan holders are above the age of 30, they could have built a good credit score.
However, with difficult economic times, many people are left reeling in a cycle of debts. If you have a less than stellar credit history, you should not be worried because we will connect you to lenders who will fund your loan request.
2. Easy to manage
Consolidating several loans into one will make it easier for you to manage the loans more easily and effectively. You will pay a loan with a lower interest rate.
3. Responsible borrowing
Private student loan consolidation promotes responsible borrowing because you will be able to deal with emerging situations. Once you have settled the many loans, you can manage a single loan and regain your financial stability. We promote responsible lending and you should not use the consolidation loan as a long-term solution for your financial problems.
- Consolidation loans give you some breathing space and an easier time for you to manage your budget and other expenses.
When you consolidate your loans, you give up a number of valuable benefits that are associated with original loans and these include
- Deferred repayment opportunities
- Balance forgiveness option
- Repayment options
- No penalties for early payments
Whatever the financial position or situation that you may be in the current position, you should weigh all the available options to judge if you are making progress in dealing with loans. If you are considering private student loan consolidation, take time to go through our terms and conditions as well as all the information given to your by your lender.
Requirements to Be Eligible For Student Loans
There is a high chance that you are eligible for private student loan consolidation. Requirements for private student loan consolidation can vary from one lender to another. Moreover, the rates and cap limit associated with the loans vary from one state to another. You should make it a point to check your state regulation on private student loan consolidation. The following are requirements for you to qualify for a private student loan consolidation
- You have graduated
- You have a recurrent income
- You have not defaulted your existing loans
Unlike conventional loan, systems where you are required to provide a bunch of documents, with private student loan consolidation you will be given a loan that will suit your income level. If you have multiple loans, the best way is to make the loans manageable by consolidating them. Our team of experts will guide you through the process of loan request and repayment process. Choose a lender who suits your needs and avoid complicating matters further by failing to pay the loan on time.
- Private loans are easier to deal with if you have a sound financial strategy to get you out of debt. Your lender will offer you terms and conditions and if you are comfortable with them, you can go on, sign the documents, and have the loan disbursed into your checking account.
- The interest rate is competitive and it allows the student borrower to have a normal life and repay the loan within the stipulated period. We use state-of-the-art programs and software to protect the information of borrowers. You should know that all your information is safe with us and it will not be accessed by anyone else apart from your lender and our team.
What to Consider Before Taking Out Private Student Loan Consolidation
According to financial experts, there are factors that you should consider if you are planning to consolidate your private student loans. You should ask your lender as many questions as possible to ascertain if this is the right option for you. Some things to consider:
- Is the interest rate variable or fixed?
- Are there any fees paid upfront?
- Do you get discounts for on-time payments?
- Can you pay using credit card with no added fees?
- Are there later or early payment penalties?
- Are there discounts for auto payments?