Question : What kind of loan can I get to consolidate private student loans?
I have $100,000 in private student loans from two lenders. The interest rate is over 10%. Is there a way to get another loan to pay this off at a lower interest rate? What kind of debt consolidation program should I consult? Most student loan companies only deal with Federal loans it seems. I keep seeing ads for mortgage loans with low monthly payments-- is there something similar I could get for a personal loan? THANKS!
- asked by bbrrpf
All Answers:
Answer #1
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- answered by dslayer202
Answer #2
You're right, there are a lot more companies thatdeal in federal student loans than there arecompanies dealing in private student loans.However, this is changing. As tuition rises andthe student loan debt increases, companies haveresponded to the need for private loanconsolidation. Sallie Mae -- one of the biggestnames in student loans -- introduced a privateloan consolidation product within the last year. Iwould encourage you to read up on the variouscompanies that offer private student loanconsolidation and pick one that you're comfortableworking with long term. Among the reputablecompanies I've found who offer this serviceare...Sallie Mae:
http://salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/private.htmKeyBank:https://www.key.com/html/H-1.39.b.htmlEducationFinance Partners:
http://www.educationfinancepartners.com/loans_privateconsolidationloan.htmlWells Fargo:https://www.wellsfargo.com/student/repay/private_consolidation/?_requestid=13154Nelnet:
http://www.consolidation.nelnet.net/PvtDescription.aspYou can look into *other* types of loans aswell. When home equity loan rates plummeted, a lotof borrowers jumped on that bandwagon and took outa home equity loan which they then used to pay offtheir student loans. The best part? There is nolimit to how much home equity loan interest youcan deduct on your taxes, while there is a limitto how much student loan interest you can deduct.If you own a home, you can look into this option.If you don't own a home yet, you can keep thisoption in the back of your mind. You can alwaystake out a home equity loan later on and use it topay off whatever private consolidation loan youdecide to obtain today.
- answered by FinAidGrrl
Answer #3
Good advice from FinAidGrrl....the only thing Iwould add is that private consolidation loans arecredit-based, meaning the interest rate chargedwill depend on your credit history, so anythingyou can do to raise your credit score *before* youconsolidate might get you a lower rate.
- answered by payingcollege
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