Question : What kind of loan can I get to consolidate private student loans?
I have $100,000 in private student loans from two lenders. The interest rate is over 10%. Is there a way to get another loan to pay this off at a lower interest rate? What kind of debt consolidation program should I consult? Most student loan companies only deal with Federal loans it seems. I keep seeing ads for mortgage loans with low monthly payments-- is there something similar I could get for a personal loan? THANKS!
- asked by bbrrpf
All Answers:
Answer #1
You know what my answer to this problem is? I amjoining the Marine Corps. I'm gonna beprogramming. There are plenty of different jobs inthe Corps other than just killing ppl. So if Iwere you I'd go to marines.com and search for yournearest recruiter to see what they could do foryou. What do you have to lose by talking to arecruiter. Nothing.
- answered by dslayer202
Answer #2
You're right, there are a lot more companies thatdeal in federal student loans than there arecompanies dealing in private student loans.However, this is changing. As tuition rises andthe student loan debt increases, companies haveresponded to the need for private loanconsolidation. Sallie Mae -- one of the biggestnames in student loans -- introduced a privateloan consolidation product within the last year. Iwould encourage you to read up on the variouscompanies that offer private student loanconsolidation and pick one that you're comfortableworking with long term. Among the reputablecompanies I've found who offer this serviceare...Sallie Mae:
http://salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/private.htmKeyBank:https://www.key.com/html/H-1.39.b.htmlEducationFinance Partners:
http://www.educationfinancepartners.com/loans_privateconsolidationloan.htmlWells Fargo:https://www.wellsfargo.com/student/repay/private_consolidation/?_requestid=13154Nelnet:
http://www.consolidation.nelnet.net/PvtDescription.aspYou can look into *other* types of loans aswell. When home equity loan rates plummeted, a lotof borrowers jumped on that bandwagon and took outa home equity loan which they then used to pay offtheir student loans. The best part? There is nolimit to how much home equity loan interest youcan deduct on your taxes, while there is a limitto how much student loan interest you can deduct.If you own a home, you can look into this option.If you don't own a home yet, you can keep thisoption in the back of your mind. You can alwaystake out a home equity loan later on and use it topay off whatever private consolidation loan youdecide to obtain today.
- answered by FinAidGrrl
Answer #3
Consolidating your student loans can be one of thebest financial decisions you can make for youroverall financial health. By reducing the numberof payments you make each month you can not onlylower your total payment per month, but you canalso take advantage of lower interest rates whichcan save you a considerable amount over time. Oneof the first steps in consolidating your studentloans is to choose a lender who will handle youraccount and service the loan.When evaluatingconsolidation lenders there are several factorsyou should consider. Doing your homework in thisarea can save you headaches later as you canchoose which consolidator works best for yourparticular situation.Some of the criteria youshould use when choosing a lender include:InterestRate. This is the biggest factor you shouldconsider when consolidating your student loans asit is what will save you the greatest amount ofmoney over the long run. Student loanconsolidators are highly competitive, but even avariance of a quarter of a percentage point canmean big bucks if you have a large balance andmany years to go before you have the balance paidoff. Know what the current market rates are anduse this as a leveraging point when talking withlenders.Payment amount. Your payment amount willbe determined by the length of time you repay thestudent loan and its total balance. Some lendersoffer longer repayment terms than others. If youare concerned with the monthly payment amount andhave a strict budget to stick to you will want tofind a lender who offers an extended repaymentperiod that can meet your budgetarydemands.Payment types. Getting your student loanconsolidation payment to the lender on time iscrucial for paying off the balance. Make sure youchoose a lender who offers flexible paymentoptions, such as online billing and direct debit.Some lenders still insist that payment be made bycheck - something that can easily be overlooked attimes that could mean penalties and higherinterest rates.History of the lender. Not alllenders are created equal, and some can seem toogood to be true because they are. Use the power ofthe Internet to research the lender you want to gowith to find out the experiences of others and howthey are servicing the loans.Beware of upfrontfees. Most student loan consolidators do notcharge a fee for consolidation. If you arepresented with a fee for the loan ask what it isfor upfront.Don't rush it. Never sign anythingwithout taking you time to read over all theagreements and taking the time to look everythingover. If a lender is rushing you to sign they maynot be disclosing everything to you. Ask for allagreements and paperwork upfront - never taketheir "word" for anything!By being an informedconsumer you can find a consolidator who will workwith you to make your repayment process easy andaffordable. Many student loan consolidationlenders are there to work for you, not againstyou. By taking the time upfront to research allyour options you can make a more informed decisionfor one of the larger financial transactions ofyour life.
- answered by Big Larry
Answer #4
Good advice from FinAidGrrl....the only thing Iwould add is that private consolidation loans arecredit-based, meaning the interest rate chargedwill depend on your credit history, so anythingyou can do to raise your credit score *before* youconsolidate might get you a lower rate.
- answered by payingcollege
| 
measure and fulfill your financial needs
