Private Student Loan Consolidation, Is There A Best One?

Private student loan consolidation cannot be generally mixed with federal student loans due to the low interest rate on the latter.  However, there are several options open to refinance the private student loans by replacing them with another.

The main advantage of doing this is that instead of making several monthly payments, only a single payment is made every month that may be reduced although this will cost one in terms of higher interest amount paid because the single loan may be for a longer period of time. 

There is a way to secure a lower interest rate.  The private student loan is based on the credit score.  If the credit score has improved by 50 to 100 points due to the fact that you have graduated and have a job, then you will be rewarded with a low interest rate.

Another way of getting a better deal when considering a private student loan consolidation is to talk to the holders of your debts.  They may be willing to negotiate with you and cut down your interest rate so that they can keep you as their customer. 

This type of loan also incurs the same interest that the home equity loan has. You can have a home equity loan at a fixed rate, thus locking in the low interest rate.  However sometimes a variable rate looks attractive as long as you can watch it and lock it the moment it is on an upward trend.

Study carefully the terms of the agreement.  Find out if the interest rate is variable or fixed.  Ask also about fees and if there are prepayment penalties.  Find out how much they are for each of the following lenders.  Write them down so you can get the best deal from among the following list and whatever other companies willing to do the private student consolidation loan with you:

  • Key Education Consolidation Loan - $75,000 maximum for non-key debt, $7500 minimum, 10, 15, 30 year repayment term, no prepayment penalty and no fees
  • Citi Student Loans - $75,000 maximum, $7500 minimum, choose fixed or variable rate, up to 30 year term rate, rate reduction after 48 monthly on time payments, no prepayment penalty
  • Educated Borrower Private Consolidation Loan - $300,000 maximum, $7500 minimum, up to 30 year repayment term, no prepayment penalty and 0 to 5% origination fees
  • Sallie Mae Private Consolidation Loan - $275,000 maximum, $5000 minimum, 15 to 30 year repayment term, choose between fixed and variable rate, no prepayment penalty and no fees
  • SC Student Loan - PAL Consolidation Loan - $150,000 maximum, $5000 minimum, 10 to 30 year repayment term, choose between fixed and variable rate, no prepayment penalty and no fees
  • Next Student Private Consolidation Loan - $300,000 maximum, $7500 minimum, up to 30 year repayment term, no prepayment penalty and 0 to 5% origination fees
Make sure when you are considering to go this route that you clarify all the terms of the agreement as the above may have changed and that all are put in writing and signed by both parties. The best one is the one that fits your needs. There you have some of the possible lenders and the other options when considering to do the private student loan consolidation.

By Roger Guzman, M.D. and Evelyn Guzman

Tell a Friend

The following is not for private student loan debt consolidation, but we thought you might be able to get some free information that might be able to help you so read Student Loan Debt Consolidation to find out. Besides, we could not find any good product on the Private Student Loan Consolidation.

Refresh Article 68 Private Student Loan Consolidation, Is There A Best One?

Return from Article 68 Private Student Loan Consolidation, Is There A Best One? to Debt Challenges Home Page for the Disclaimer.

Article 70 College Financial Planning - How To Go About This

Don't Miss Reading These Related Posts.

College Loan Debt, To Save or Not to Save

Credit Card Debt,Can't Resist the Allure? Just Follow the Rules

College Financial Planning, the Step One Should Not Avoid

Site Map of Debt Challenges for Easy Navigation
If you want to make any comments or other feedback, please fill in the contact form below so I can send you my email address. This is to avoid spam.

Contact Us

Please note that all fields followed by an asterisk must be filled in.

Please enter the word that you see below.

  

Please sign up for our free ezine entitled “Save and Earn Money” Newsletter.   We will publish this once a month where you will read about some encouraging news, positive experiences from others who

Enter Your E-mail Address
Enter Your First Name (optional)
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Save Money Today.
Page copy protected against web site content infringement by Copyscape


=