Private Student Loans Consolidation

By: EconomyWatch Content   Date: 25 November 2009

About The Author

EconomyWatch Content

Follow The Money

EconomyWatch, Content Team

 

  • Dot Div
  •      

 Private student loans consolidation combines all your eligible education loans taken from private lenders into a single loan, reducing the number of your monthly debt payments. This credit-based loan usually has attractive interest rates and repayment terms, helping you save some money every month. 

Benefits of Private Student Loan Consolidation

With private student loan consolidation, you can:

  • Simplify your finances. After consolidation, you can obtain a single monthly payment.

  • Reduce the interest rate applicable on your loans if your credit has improved. Your existing lenders will not reduce your interest rate even if your credit rating has improved.

  • Receive lower APRs.

  • Lower your monthly payments by extending the repayment term of your private student loan. You can spread your loan repayment period up to 30 years for the lowest possible monthly payment.

  • Reduce your interest rate by providing the consolidator with the facility to automatically withdraw payments from your personal checking or savings account.

  • Get a 48 month deferment if you are a medical/dental resident or be eligible for a 36 month deferment for all active-duty military personnel through the Graduate Leverage Private Student Loan Consolidation Program.

  • Prepay your principle amount without paying any penalties. 

Private Student Loan Consolidation: How Much Can You Consolidate?

You can opt for private student loan consolidation for:

  • Amounts ranging from $5,000 to $100,000.

  • Aggregate loan limit (including all other debt related to education) of $250,000. 

Private Student Loan Consolidation: Interest Rates

Through private student loan consolidation, borrowers can take the benefit of a first year introductory interest rate equaling 5% to 8.5%, in addition of the 3-Month LIBOR (London Interbank Offered Rate).

Origination fees range between 1% and 5%, depending on your individual credit or the credit of your cosigner. Fees are due at the closing of the loan and are added to the loan amount, raising the total amount borrowed. However, it helps in avoiding any out-of-pocket expenses at loan closing.

           


  • Dot Div
  •      

Most Popular in Student Loans

Related Links
blog comments powered by Disqus