Private Student Loan Consolidation Providers & Overview

October 12, 2011

Private Student Loan Consolidation

private student loan consolidation

Major Overview:

  • By utilzing the act of private student loan consolidation, you are basically partnering with a company who will pay off all of your private loan providers, to provide the convenience of you only having to pay one payment, and that is to you consolidation provider. This is done by providing a consolidation loan.
  • Private student loan consolidation should be done sperately from federal student loan consolidation because you will lose the benefits that come with federal consolidation loans which are much better than private.
  • The term of your loan is reset when you use consolidation your private student loans, this often equates to lower monthly payments, but is done by providing a longer repayment period which means more interest paid. Although this can be avoided by finding a consolidation company that doesn’t charge a penalty fee for paying more than the monthly minimum.
  • You can consolidate one loan and still enjoy the benefits of consolidation.
  • Payments need to be made usually within 30 to 60 days after you start your private student loan consolidation contract.
  • Repayment periods usually last around 15 to up to 30 years and are a bit shorter for undergraduate students compared to the graduate student repayment period.
  • Active duty military members many recieve a deferment period of up to 36 months as well as medical and dental residents can be granted up to a 48 month deferment time.

Private Student Loan Consolidation Tips

  • Being that private student loans are credit based, in the event that your credit score is a lot higher since the time that you took out the private loans, you may be able to get a much lower interest rate with a private student loan consolidation company compared to what you are paying to your currrent lender(s).
  • Negotiating with your lenders is another viable option as they want your business and are looking to keep it at all costs, which can open up an opportunity to negotiate lower interest rate terms.
  • If you can find a co-signer with a better credit score than you do, this can be a great way to get a lower APR rate. After a couple years, the consoldiation balance can be tranferred from your co-signers name to your name where, they will submit your payment history to credit bureaus, and you can boost your own credit score.

Private Student Loan Consolidation Providers

If you are still looking to utilize private student loan consolidation, you can use these accredited providers to take advantage of the benefits.

  • Wells Fargo Private Student Loan Consolidataion – Interest rates are either fixed or variable, a 5,000 dollar minimum debt and 40,000 to 100,000 maximum, no activation fee, slight discounts for those who already hold an account at Wells Fargo as well as those who enroll in auto debit, variable interest rates range anywhere from +1.0-5.75+ which are Prime rates and for fixed rates 8.8-13.3 percent
  • NextStudent Private Loan Consolidation – Every quarter their interst rates vary, loan consolidatoin starts at 7,500 in private student loan debt to up to 300,000, offers up to 30 years for repayments and they do not charge any fees for higher repayment amounts.
  • Cedar Education Lending Private Student Loan Consolidation – Amounts range from 7,000 to up 100,000, 1 percent activation fee, after one year the cosigner can be “released” and the debt will be tranferred to the person who originally took out the loan.

 

Category: Private Student Loan Consolidation, Student Loan Database

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