Go Through a Private Lender to Consolidate
Compare Terms and Benefits
Consolidating your private student loans is a whole separate process from your federal loans. If you are bogged down with multiple alternative student loans you may consider a student consolidation loan.
Considerations
When you opt to consolidate, typically you’ve already weighed the pros and cons. Factors to consider include:
- Total monthly loan payments per month.
- Interest rates
- Lenders
- Number of payments remaining
- Credit history
With this information you will be able to make an informed decision, but it should be in concert with an account manager through a reputable lender.
Private Lenders for Consolidation
Private student loans have been growing in popularity over the last five or so years, which makes this an even more critical topic. And of course, as long as the cost of college continues swirling out of control, there will be no end in sight for student loan debt.
Today’s college grad is fortunate to have the convenience of online account management capabilities through most lenders. This dexterity allows you instant, up to the minute information and access to your student loans. You may change information, make payments, and even apply to postpone a payment. Tools like these give you the financial muscle to adjust account preferences and make important and timely decisions that affect the rest of your financial life:
- The Sallie Mae Private Consolidation Loan requires you have at least $5,000 in private loans. This product comes with a variable interest rate and a “disbursement fee.” You may be able to stretch out your repayment term to a maximum 30 years, giving you a much lower monthly payment. You must have good credit to qualify or a creditworthy co-borrower.
- American Educational Services provides two distinct private loan consolidation products that target particular customer-borrowers. The AES Private Access Consolidation is a good example of a lender-specific program. Applicants must have loans originating with the company and at least $7,500 in loan debt. Loans that have defaulted or are in arrears beyond 45 days are excluded. Customers must speak directly to an account manager to apply for this loan. The Key Education Consolidation program is a product offered in partnership with Key Bank. Applicants are not required to have loans originating with AES. Minimum loan debt must be $7,500. Spouses may consolidate their loans into one account. Borrowers get flexible repayment options and fee-free processing.
- Private banks now have their own student loan products and services. Bank of America’s private consolidation loan offers yet one more option in the consolidation arena. Your minimum debt must be at least $10,000, but you may also roll in “previously consolidated federal loans.” Also the loan allows you to include auxiliary education loans, such as those you might have used to buy a computer, books, or for education-related travel.
There are many more options for private loan consolidation, including those available through your student loan provider. In some cases the biggest differences between lenders lies in the borrower benefits and loan terms, such as fees, repayment options, types of loans accepted and interest rate reductions for good practices.
