Good Way to Consolidate Private Student Loans
If you have more than one private student loan from a bank or other lenders, you can make life easier by consolidating private student loans into one loan with one monthly payment. Student loan consolidation payments could end up lower than your current payments.
Loan Consolidation Can Help Save Money
Private student loan consolidation may potentially help you save time and money with one easy low monthly payment on your private student loans. Depending on the details of the borrower’s current private student loan debt, a private student loan consolidation can potentially lead to thousands of dollars in savings on annual payments and interest expense.
Lower Rate With Private Consolidation Loan
Since the interest rates on private student loans are based on your credit score, you may be able to get a lower interest rate through a private consolidation loan if your credit score has improved significantly since you first obtained the loan. Also, you can try talking to the current holder of your loans, to see if they’ll reduce the interest rate on your loans rather than lose your loans to another lender.
Private Consolidation Loan Is a Single
A new consolidation loan issued by the bank or credit union that pays off all, or some of your existing private loans. In most cases your old loans were probably held by other banks; not the one you are already with. If you are approved, the new lender will pay off the old loans on your behalf and roll that obligation into a single, new consolidation loan.
Private Consolidation Loans are Offered Through Banks
Students with private loans must apply for consolidation directly through a consolidation loan lender. Unlike federal consolidation, which is through the Federal Department of Education, private consolidation loans are offered through banks, credit unions, and other private lending institutions. Most lenders allow borrowers to file the application directly on their website, making the process straightforward.