A Private Student Loan Consolidation can help you combine two or more monthly student loan payments into a single payment to a loan servicer, potentially easing the burden on your personal budget for the life of the loan.
If you’re having trouble handling more than one student loan payment each month, or the current interest rates on your loans seem too high to manage, a Private Student Loan Consolidation may be the ideal solution.
The Benefits of Private Student Loan Consolidation
If you have federal student loans you’re looking to consolidate, your best option may be a Federal Student Loan Consolidation, which offers a fixed rate on a single student loan from the U.S. Department of Education. If your student loans were disbursed by your state or a private lender, however, learning the advantages of converting your loans into one consolidated student loan is the first step towards relieving the burden on your finances.
Before getting started, you’ll want to evaluate where you currently stand with your student loans. Some factors you should consider before a Private Student Loan Consolidation are:
- How much you’re paying each month on your private student loans
- How long you have until all your outstanding loans are paid off completely
- How much you’re paying in interest on each of your student loans
- How many lenders you’re making payments to each month
- How your credit score and credit history could affect your approval
By assessing your need for a Private Student Loan Consolidation, you’ll then have a better idea of whether or not a consolidation will ultimately help your financial situation.
Using this information, let’s now take a look at some of the benefits of consolidating your private student loans to see if it’s the right fit for you. These advantages include:
Simplifying Repayment: Converting multiple loans into one student loan helps you cut down on the number of payments you’re making each month by merging them into one single payment.
Reduced Monthly Payments: Multiple monthly payments can be burdensome for anyone trying to manage their expenses. Through a consolidation, you will make a single monthly payment that is usually far less than the total amount you’re paying to various lenders each month.
Lower Interest Rates: Between having variable interest rates and/or high interest rates, your student loans may be unmanageable from an interest perspective. Depending on your current salary, credit history, and credit score, you may be able to earn approval for an interest rate that is far lower than the average you’re already paying each month towards your loans.
Release of Cosigner: If you had a family member, friend or loved one help you get a low interest rate on your original student loans, a private consolidation loan enables you to pay off those loans, releasing any cosigners from their debt obligation, and likely improving their credit score.
Learn how you can personally benefit from a Private Student Loan Consolidation for free.
Contact an expert today at (800) 670-4196
How a Private Student Loan Consolidation Works
Finding a lender who can consolidate both private and federal loans may be challenging, so you will likely have to choose a Private Student Loan Consolidation lender to convert your private loans into a single student loan. Fortunately, you have two options when you’re considering opportunities for consolidation.
Home Equity Loan: While it may be the less popular option, a home equity loan may be ideal if your loans have variable interest rates, or they’re higher than you would pay with this type of loan. Beyond locking in a favorable interest rate, you can sometimes include your new monthly student loan payment in your mortgage payment, which makes paying back your loans easier.
Education Lenders: There are numerous education lenders who can help you get out of student debt and lower your monthly payments through consolidation. How these lenders can help, however, depends on a few factors, such as your income, credit history, credit score, and monthly expenses, not to mention what they are able to offer. Each lender will have their own requirements for Private Student Loan Consolidation, making it important to choose the best lender for your situation. This is where the experts at Student Loan Forgiveness can help.
If you’re having difficulty deciding on the most suitable path for consolidating your student loans, our student loan specialists can help you with the process and discuss your best options. As with any loans, it’s important to know how a Private Student Loan Consolidation can help you specifically, and get you on your way to becoming debt-free.
For more details on Private Student Loan Consolidation, speak with a student loan specialist by phone at (800) 670-4196.