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6 Tips On How To Consolidate Private Student Loans

College is supposed to be about gaining the knowledge to succeed in the world and a college diploma that will lead to a great career. Unfortunately, these days the only way for most students to attend college is by taking out student loans.
The average college graduate now holds over $25,000 in student loan debts, a fact made even harsher by a weak job economy. If you’re worried about being able to pay off your student loans, debt consolidation might be the answer. Here are a few tips on how to consolidate private student loans.
Is It Worth It?
The first thing you should do when considering debt consolidation in ask yourself if it’s right for you. Debt consolidation is essentially selling off all of your private student loans to one new loan company. It can make student loan payments easier because instead of paying multiple loan companies with many different interest rates and regulations you can have one low loan payment a month from one company with one set of rules. It makes it easier to pay off your debts.
Research The New Loan
Before immediately signing anything that ties you to student loan consolidation, be sure to read through the terms of the loan. You want to make sure that you are completely comfortable with the rules, especially since they will be different terms than the ones you original signed when taking out your private student loans. Every term will be your responsibilityso it’s important that you go into loan consolidation with as much information as possible.
Low Interest Rates
One of the perks of consolidating private student loans is that you can lock in a lower interest rate. Usually consolidated loans have much lower interest rates, but depending on when you apply, the offered interest rates may be different. Interest rates will likely get higher and higher over time, so it’s important to go through the process of consolidation as soon as you can, as long as it’s the right option for you.
Overall Cost
Another advantage of consolidating your private school loans is that you will likely have a lot more time to pay off the loan. Many loan payment plans last as long as 30 years. Therefore the monthly payment will be lower. Since your loan gathers interest over time, you will likely spend more money overall when repaying your loan, but in smaller payments; it’s important to weigh the benefits of a smaller monthly payment or longer loan repayment plan, and base your decision off which option is better for you.
Check the Requirements
Before consolidating your private student loans, you should find out what the requirements are to qualify the loan. For example, at CedarEdLending, you must have a steady, reliable income of at least $2,000 a month. Most organizations will require you to meet a certain credit requirement as well. If you’re unsure you will meet the requirements, increase your chances of being approved for a loan by getting a creditworthy cosigner on your consolidated loan.
How Much Do You Need?
It’s important to consider how much money you need to cover your loans. If it’s less than $7,500 a year, then you may not qualify for a private loan consolidation. $125,000 is the maximum for undergraduate debt, while graduate school alumni qualify for $175,000.
Deciding to consolidate your private student loans is an important decision that deserves time to consider and research. Who knows, it could be the best decision you can make in your post-college life.

Saving Money with a Private Student Loan Consolidation

Once you have graduated from college, it is now time to face a new world and start paving your own career path. However, it is also important to look back and pay off the private student loan companies who assisted and helped you through college expenses and tuition fees. Paying off several student loans can be very stressful, and it is very hard to budget your finances if you have to pay for them on different dates of the month. A great solution to this problem is via private student loan consolidation. Managing your monthly loan payments into one account can be a great help, and can better enable you to effectively budget your money and even lower your monthly repayment fees.

Although you cannot consolidate your federal and private student loans, it is best to consolidate them separately, in order to enjoy the benefits from both of them. Federal student loans will definitely give you lower rates once consolidated, so it will be far easier than consolidating your private student loans. Thus, it is best to be wise when it comes to private student loan consolidation.
Here are some helpful tips to save money with private student loan consolidation:
  • Scour the internet for a list of companies who offer the most competitive rates and repayment schemes. Make a list and narrow it down to three to four companies, before finally contacting them.
  • Once you have contacted these companies, make sure to ask questions. Some of the most important questions that you can ask are: Are your interest rates fixed or variable? Are there any other fees involved? Are there any pre-payment or cancellation penalties? It is best to be clear, so that you won’t be surprised if there are other additional fees you are being charged with.
  • Maintain a good credit rating. Borrowers with a good credit rating will of course have lower monthly payment rates, so be sure that you have a good credit rating.
  • Lower your monthly repayment fees by extending your repayment period. Some companies offer up to 25 years when it comes to repaying their loans. Choose which scheme is best for you, so that you can plan your finances ahead.
Choosing the best private student loan consolidation company can really be a tough decision to make, and it is best to choose a company with a known reputation when it comes to transparency and integrity. Choose a company who will offer you the best rates and repayment terms, to help you repay all your loans the easier and most convenient way possible.

 

 

Private Student Loan Consolidation

Without a doubt, student loan debt can be very overwhelming. A private student loan consolidation can make that more manageable and free up funds for other activities.
How difficult is the process? It depends on who you work with. You certainly want to work with a company that will look at your current financial situation and help you determine which private student loan consolidation program is best for you.
There are many benefits a private student loan consolidation.
When you dive into private student loan consolidation, a couple of things can happen:
1. You might get an interest rate reduction.
2. You may have a lower monthly payment.
These two reasons are why people decide to do private student loan consolidation. You can’t go wrong when you have less money to pay back and you don’t have such a huge monthly responsibility. It’s important to know that you can consolidate your federal education loans through private student loan consolidation. You can only combine your private loans for this type of consolidation. With Cedar Education Lending you have a private student loan consolidation program developed and managed to promote a private student loan consolidation and refinancing opportunity for college graduates with private student loan debt.
As it states on FinAid.com, since most private education loans do not compete on price, a private consolidation loans is merely replacing one or more private education loans with another. So the main benefit of such a consolidation is obtaining a single monthly payment. Also, since the consolidation resets the term of the loan, this may reduce the monthly payment (at a cost, of course, of increasing the total interest paid over the lifetime of the loan).
There are many in advantages to private student loan consolidation programs. The question is will you take advantage of them!
Contact us today so we can help you with your private student loan consolidation program!