Overview of Bank of America Consolidation
See What Benefits Are Being Offered
Private lenders that once specialized solely in personal and small commercial financial services and products are well beyond novice in the student loan business. Regional and national banks extend attractive federal and private student loan products to better serve customers.
Bank of America is a nationwide provider of the Federal Family Education Loan Program (FFELP), which includes a Federal Consolidation Loan among its products. BOA Student Center provides information on the college savings plans, college financial planning and the BOA private and FFEL student loan products. Even though you may not be a customer with Bank of America you are welcome to apply for a consolidation loan.
Pre-Consolidation Considerations
Before you’re sold on the notion of consolidation take time to ask yourself a few important questions. Consolidation is not always the best way to save money, and may actually cost you more money than you’re willing to part ways with:
- How many lenders hold your student loans?
- What types of student loans do you have?
- What are your interest rates?
- Are monthly payments difficult to meet?
- Are you still within your new grad grace period?
Federal Consolidation Loan
Under the terms of the FFEL program, the Federal Consolidation Loan comes with a fixed interest rate based on government “weighted average” calculations. BOA’s handy online calculator will quickly return your weighted average so you might know the final interest rate of the loan. Consolidate all your federal loans, including Federal Direct Loans and Disadvantaged Student Loans. Your federal loan application will not require a credit check.
Borrower benefits are those perks applied especially to the federal loans. Lenders have little leeway with other details that are already set by the FFEL program. Savings incentives extended by BOA include:
- .25% interest reduction for borrowers that setup electronic debit payments.
- 1.00% interest rate reduction after 36 months of on-time payments.
- Fee-free application, origination and early repayment.
Private Student Loan Consolidation
Students that lack full tuition coverage once federal loans and scholarships are disbursed, seek private student loans to fill the void. Over the last half-dozen years, private student loans have taken their place among all other financial aid options. The Bank of America Student Program Consolidation Loan gives borrowers the flexibility to roll all private education loans into one. This also includes auxiliary education loans that were used for expenses like textbooks and computers.
Monthly payments offer relief from high interest rates and multiple costly payments. The minimum consolidation loan, however, is $10,000. Borrowers with 48-on-time payments in a row will earn a .78% interest rate reduction and an additional .25% for payments on an electronic debit system.
