For those who are pursuing higher education, a degree can come with a very large price tag â€“ which is why over half of todayâ€™s college students and recent graduates have at least some amount of student loan debt.
The recent economy has made it difficult for many to pay down their debt obligations. This can especially be the case for those who have student loan obligations from several different private student loan sources. In these cases, it may seem that the bills from these lenders must be juggled each and every month in order to be paid.
While this can be frustrating, there is a better way to manage your student loan debt. With a college loan consolidation â€“ a process that is similar to refinancing a mortgage â€“ can help you in attaining just one single monthly payment for numerous student loans.
Oftentimes, because the consolidated loan term is longer in duration, you may even end up with a student loan payment that is significantly lower in amount than the total that was due from the other numerous sources.
The Benefits of College Loan Consolidation
By consolidating your college loans, you will be in a much better position to budget for and manage other household expenses. This can be a big relief â€“ especially for those who are entering the workforce and may be taking on other debt obligations such as a rent or mortgage payment, auto loan payments, and additional living costs.
When you consolidate your student loans into one single source, many lenders may also allow you to ease into the new payment by letting you to pay only the interest that is due on the loan for a certain stated period of time. In doing so, you will be much better able to allocate your financial resources to other pressing obligations while still continuing to pay down your student loan debt.
How Much Can You Save By Using College Loan Consolidation?
It is possible to save a great deal of money over time when consolidating your student loans. Assuming that you have an original amount of student loan debt with an average interest rate of 9.0 percent and a 15-year repayment term, you could save a great deal on monthly â€“ and therefore annual â€“ payments by combining your student debt obligations into a new loan with the same 15-year term â€“ just by qualifying for a better interest rate now that you have graduated.
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How to Get Started
Cedar Education Lending can help you in walking through the student loan consolidation process. Application materials are available online, allowing you to begin right away. You can even get an idea of what your new monthly payment will be by using the private student loan consolidation calculator.
In order to qualify, you must be a graduate of an eligible college or university. If you do not currently earn the minimum amount of monthly income that is needed for loan approval, you may choose to apply with a cosigner. Provided that your cosigner meets the minimum credit requirements and earns a minimum monthly income of $2,000 or more, your chances of being approved will be increased.
In most cases, you will have 15 years in which to pay back your consolidated private student loan. You may also be likely to pay off this loan early without facing a prepayment penalty. This can save you additional sums overall.
It is a known fact that the cost of higher education today is quite high. Because of this, students are apt to accumulate a great deal of debt in order to pay for their education. When consolidating your private student debt obligations with Cedar Education Lending, you will typically be eligible to consolidate between $7,500 and $125,000 in private undergraduate student loans. For those who possess private student loans for post-graduate education, it may be possible to consolidate up to $175,000 in total private student loan debt.
It is also possible that the interest rate on your consolidated student may be less than what you are currently paying on your other private student loan obligations. While the interest rate charged by Cedar Education Lending may vary, it is typically based upon the 3-month LIBOR (London Interbank Offered Rate) Index, plus a set additional percentage.
With Cedar Education Lending, you can consolidate your private student loans, all under one roof, making your loan repayments more convenient â€“ and oftentimes less.