About Private Student Loan Consolidation

Looking for a private student loan consolidation? Here are some frequently asked questions that may help you!

Theoretically the higher cost of your study means the higher chance of you to take multiple accounts of loans. If you face this kind of problem, you may think to gather all of these multiple loans into one loan – if so, private student loan consolidation may be your best option to cope with your problem.

You can also consider federal loan consolidation, but this is more recommended if you have been receiving loans from the federal government. Again, if you were on the private loans, it’s much better to also choose the private type of consolidation.

Private loans may be slightly higher in cost if compared with federal loans. Most of them are offered in variable interest rates – though there are also some offered in fixed rates. These are some reasons of why taking this kind of option is recommended right after you graduate.

By choosing the right plan of consolidating private student loans, it should be helpful enough to derive you for a nice deal of practical and easier repayment process. Other advantages may include you can have a single monthly payment (as noted before), or maybe you will get more discounts on charges and interest rates. With these benefits, there should be a good chance for you to save much more money in the processes.

The following are other frequently asked questions about private student loan consolidation:

How about with the options of repayment that you can choose?

If you are qualified for a private loan consolidation, generally the repayment options can be interest for up to four years.

How about with the loan limit?

For the loan limit – it varies from company to company. While some may offer the range of from $7,000 to $100,000, you may also find others with the range of from $7,500 to $150,000! Even there are also some companies that provide different the loan limit between graduate and undergraduate students.

Should you combine your private loan with federal loan consolidation?

Theoretically, both loan consolidations can be combined. To keep safe, it’s much better to combine them independently from each other. And the most important thing, never combine two different categories! But in general, most financial advisers say that it’s much better to avoid the combination of between private and federal loans.

About the waiting period for approval!

The answer of the waiting period for you loan approval varies from company to company. But commonly, conditional approval is about 45 days for all process (including for further loan documentation).

Can you reduce the cost of loan with a credit worthy cosigner?

Your personal credit history can significantly affect the interest rate of your private loan. For this reason, having a credit worthy cosigner sometime can help lower the interest rate.