Today’s tough economy has made it difficult for many to keep up with their debt obligations. This can be especially the case for those who have accumulated private student loans. With the steep cost of college education, it is possible that current and former students can possess student loans from many different sources, with a grand total of $100,000 or more.
In cases such as this, it may seem like the bills keep pouring in throughout the month, with no end in sight. But there is an alternative to paying numerous high-interest private student loan bills that may lower your monthly payment while still allowing you to pay down your loan balances.
Private student loan consolidation has become a viable solution for many who are struggling to pay off their college education debt. By working with a lender who can place the total amount due under one umbrella, you will end up having just one convenient monthly payment â€“ often at a lower monthly amount due.
What is Private Student Loan Consolidation?
While many students obtain funds from government student loan sources, it may be necessary to borrow from private lenders in order to obtain the total amount that is needed for tuition and other school related expenses. In doing so, it is possible to rack up a large amount of debt that often commands a high interest rate and a short repayment period.
By consolidating this private student loan debt, however, you can eliminate the numerous monthly payments that are due, and you can typically extend your repayment period as well. This can help in keeping your new monthly payment low â€“ essentially allowing you to also manage other expenses such as your rent or mortgage, auto loan payments, and additional living expenses.
The process of consolidating your student loans may be akin to refinancing a home mortgage whereby the borrower has the ability to potentially lower their monthly payments by quite a bit, while still paying down their debt obligation.
In the case of student loan consolidation, however, borrowers can put an end to the ongoing juggling act of making numerous loan payments each and every month â€“ each typically with different interest rates and terms â€“ and turn it in to one easy and convenient monthly payment.
Student Debt Relief
When seeking information on private student loan consolidation, you will want to work with a lender that is an expert in the field. By having all of your questions answered, you will be better able to understand the loan consolidation process and see how it can save you a great deal of money over both the short- and long-term.
Cedar Education Lending offers private funding options to students who are currently attending a college or university, as well as to those who have graduated from a qualifying educational institution. The private student loans that are offered by Cedar Education Lending provide competitive interest rates as well as other attractive borrower benefits.
With Cedar Education Lending’s Private Student Loan Consolidation program, you will be able to combine your private student loans from several sources into one easy and convenient monthly payment. (Those wishing to consolidate government related student loans may visit here.)
Taking the Next Step
In order to apply for a Private Student Loan Consolidation through Cedar Education Lending, you must be a graduate of a qualifying higher education institution. In most instances, you may borrow an amount that ranges between $7,500 and $125,000 for consolidating undergraduate loans, and between $7,500 and $175,000 for student debt from graduate school private loans.
It is also possible to obtain an interest rate that may be lower than what you are currently paying on your private student loan debts. The interest rate on a Private Student Loan Consolidation from Cedar Education Lending is based on the average 3-month LIBOR Index. This rate, plus an additional set percentage, will equal the total amount of your loan’s interest rate.
With a private consolidation loan from Cedar Education Lending, you will have 15 years to repay the principal and interest on your loan. Given this time frame, you may pay off your loan early and without a prepayment penalty.
If you wish to take the next step in applying for a private student loan consolidation with Cedar Education Lending, you may do so online directly by starting here.
For any additional questions regarding how the process works, who is eligible for a student loan consolidation, who may qualify, and where to turn for help, you can obtain more information by visiting our frequently asked student loan questions.