Consolidating public and private loans

Posted by / 29-Sep-2017 08:27

For example, instead of making multiple payments to multiple lenders at various times of the month, you simplify the equation by making a single monthly payment.

Learn more about private student loans Private student loans are granted and managed by lending institutions – banks, credit unions, college foundations – and typically charge a higher fixed or variable-interest rate than federally funded loan programs.

It is quite common for people with student loans to deal with 10-12 lending institutions, which means 10-12 payments and 10-12 due dates each month.

When you consolidate student loans – either federal or private – it’s one payment to one lender, once-a-month. Loan consolidation for student loans was created to make it easier for millions of borrowers to pay off their debt.

Ideally, you would qualify for debt consolidation after graduation.

However, you also could qualify when you leave school or are enrolled less than half-time.

However, if you try to refinance a federal loan through a private lender, you will lose eligibility for things like forgiveness programs, deferment, forbearance, as well as the income-based repayment programs.The process for consolidating private student loans is focused around your credit score.If your credit score has improved dramatically since graduation, you may be in line for a lower interest rate.The first stage of review to verify how many of our loans qualify for consolidation.Then decide if you want a payment plan based on your current income or prefer a longer repayment period to get the lowest fixed payment possible.

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With private loans, your credit score is a factor in whether you qualify and you may need a co-signer.