Understanding a Private Student Loan Consolidation
A private student loan consolidation should not be confused with a federal consolidation. There are different terms and conditions that are involved in a private student loan that would create problems if they were to be consolidated with federal loans. Furthermore, federal consolidations have other benefits that would be null and void if they were consolidated with private loans. A private student loan consolidation is handled by a private company because there is no government backing the loan or the private student loan consolidation.
When you apply for a private student loan consolidation, you will first be given the terms and payment options to choose from. Depending on how much you owe, there are some options that will be better than others. Once you apply to work with a certain company through the process of getting a private student loan consolidation, they will look over all of the terms and decide what the best interest rates are for your student loans. By getting a private student loan consolidation, you can combine all of the debt in your student loans into one and average out all of the interest rates into one as well.
The benefits of a private student loan consolidation range from lower interest rates to fewer monthly payments each month. This helps you to manage your monthly budget better on a daily basis and can help you to plan around the monthly payment. When it comes to determining the loan terms, you can work one on one with the company to decide what options are the best for you. In addition, you can work with them to find ways to better manage your payments so that you do not miss any and can pay off your debt as quickly as possible. With a private student loan consolidation, you can lower your student loan debts the same way you can with federal consolidations.
For more resources about private student loan or about federal student loan or even about Sallie Mea student loan, please check out these links.
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For more resources about private student loan or about federal student loan or even about Sallie Mea student loan, please check out these links.
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private student loan consolidation | Admin August 6, 2009
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By JW21, August 6, 2009 @ 8:05 am
By B, August 6, 2009 @ 8:27 am
It's good you’re looking at your options. There are some pros and cons of the various lenders.
(full disclosure I work for one of them Student Aid Lending)
First understand that the rates and programs are virtually all the same. The Dept. of Education came up and administers the consolidation program so the rate/payment/etc. are all the same from one lender to the next as they do not decide what your rate is the Dept. of Education does.
Secondly you can not (and should not) combine your private and federal loans into one consolidation. If you do so you'll loose all the benefits (deferment, tax deductions, ect.) that come with your federal loans. In fact I wouldn't be in a rush to consolidate your private loans. Since many students have begun taking out private loans new programs are coming out late summer to offer you better rates and discounts on these loans so it would be good to wait till at least July.
So what's up with the 1.85% off – Cash Back – 2% discount after 24 months???
Lenders are competing for your business by offering other bennies. All make good on their offers but all of them will offer you the same benefits, all offer cash back or rate discounts or both. The question is do you have to ask for them or do they just offer them to you. Understand one benefit may be better than another. What's more important to you, cash today or paying less interest money and lower payments for the life of the loan?
Here's the break down
Cash Back = Money Today
Rate Discount = Less % Spent
Cash Back & Rate Discount = A little of each
Pick a lender you feel comfortable with. Someone you can call when you have a question and who you know will manage your account best.
Remember they are all truly the same the question comes down to service.
Good Luck.
By demossmd, August 6, 2009 @ 9:28 am
If you have facebook, there is a group with 200+ thousand members called: “Cancel Student Loan Debt to Stimulate the Economy”
There is also a petition which you can find there.
By forthecause, August 6, 2009 @ 9:28 am
and the point of these small little vids?
By wojtek0000, August 8, 2009 @ 12:26 am
ditz.
By lexelence, August 9, 2009 @ 1:10 pm
Try STUDENT DEBT KILLER program as seen on YouTube
By Whitney S, August 9, 2009 @ 1:29 pm
You can only consolidate your loans once, so I do not recomend doing it while you are still in school. Because if you still have to borrow, your most recent loans would not have been included in the consolidation, kinda defeating the purpose of consolidation in the first place.
In short, Consolidation is where your old loans are paid off and your new loans are lumped together into one loan and one payment. If you have private and federal loans, you can not consolidate the two together. Also any private loan consolidation will (again) require you to have a cosigner. So, yes, in theory your old cosigners are 'getting off the hook' but you will be required to get another cosigner, or have your current cosigner re-cosign for you. If you do not have excellent credit and a solid employment history, you will not be able to consolidate without a cosigner.
Persoanlly, most of the consolidation is just HYPE and doesn't really help you much. When you consolidate, you take a few perfectly good loans that are scheuduled to be paid off in 10 years and combine them with a slightly lower payment and pay if off over a period of 30 years. Sure your payments might be a few dollars less, but now you are paying on them until you retire!!!!