Although the U.S. government provides numerous sources of college funding, oftentimes this is not enough. Many students must turn to private lenders in order to fund the remainder of their higher education costs.
While these funds can help to obtain oneâ€™s degree, upon graduation, payments must start – and depending on your other financial obligations, multiple monthly student loan expenses can be stressful, frustrating, and expensive.
But there is a better way to pay off your private student loans â€“ without breaking the bank. By consolidating all of your private student loans, you will have just one monthly payment to make â€“ and oftentimes, based on the new interest rate and loan term â€“ this payment can much be less than the total of what you are currently paying.
Prior to obtaining a private student loan consolidation, though, it is important to gather some pertinent facts. One of the most essential factors will be the amount of your new payment. This can typically be obtained by using a student loan consolidation calculator.
How the Student Loan Consolidation Calculator Works
Those who are considering a private student loan consolidation can better understand their potential savings â€“ as well as whether or not this type of loan is right for their specific situation â€“ by using a special type of calculator that is geared to such loan consolidations.
This calculator will take the remaining loan balance, as well as the monthly payments, on each of your current student loans and use them to determine the impact of a consolidation loan on your monthly finances. Other information such as the strength of your credit is also used in this calculation.
As an example, John has three private student loans. His outstanding balances are $12,500 on the first, with a monthly payment of $250; $15,000 on the second, with a $300 monthly payment; and $22,000 on the third, with a $400 monthly payment. This means that Johnâ€™s total outstanding balance on the three loans equals $49,500 with a total monthly payment of $950.
Given these figures, John is currently making student loan payments of $11,400 annually. By adding his information into a student loan calculation calculator, John discovers that by consolidating his three loans, his new payment would be only $414.36. This gives John a monthly savings of over $535 and an annual student loan payment of nearly $6,500 less than he is currently paying.
Will a Private Student Loan Consolidation Work for You?
There are many factors to consider when determining whether or not a private student loan consolidation will work for you and your individual situation. These include the amount of debt to be financed, the duration of the new loan, and the interest rate you will be given.
In order to discover whether a private student loan consolidation will work for you, see the form above and type in your current private student loan balances as well as your current monthly payments. By doing so, you may discover just how much you can save by opting for a private student loan consolidation.
Taking the Next Step
While there are many companies that offer private student loan consolidation options, it is always best to stick with one that is an expert in the field. Cedar Education Lending can help you to obtain additional student loan funding should you require funds to pay your college tab, as well as assist you with consolidating such loans once your education is complete.
In order to apply for a Private Student Loan Consolidation through Cedar Education Lending, you must be a graduate of a qualifying college or university. Consolidation loans can typically be offered for amounts of between $7,500 and $125,000 on private undergraduate loans and up to $175,000 on funds that were borrowed for post-graduate school needs. Borrowers must meet certain credit and income criteria. And in some cases, a cosigner may be required.
It is important to determine whether or not a private student loan consolidation will work for you. Donâ€™t leave yourself in the dark. Find out today just how much you may be able to save by consolidating all of your private student loan payments into one easy-to-manage monthly expense â€“ giving you more control over your finances for other pressing needs.
TheÂ Private Student Loan Consolidation CalculatorÂ computes an estimate of theÂ amountÂ of your monthly loan payments and the annual savings, Â This loan calculator can be used with Federal education loans (Stafford, Perkins and PLUS) and private student loans.
Whether you are considering taking out a new student loan, or about to start paying off a current student loan, use this helpful tool to estimate what your monthly payment might be.
Simply enter the total loan amount (include any accrued, unpaid interest), interest rate, and length of the loan (how many years to repay).
To begin, enter your information below