Contrary to popular belief, private loans can be consolidated. Here is what you should know if you have them and are considering consolidation. 1. Do not consolidate them with federal loans even if they provide the option.
2. They can't consolidate until you're out of school and beginning repayment. 3. In most cases, consolidating private loans will leave you with a variable rate loan and it will not typically fix your loan rate (like federal consolidation).
4. Keep in mind that the best option is often to leave them alone. How to know? Remember that federal student loans are subject to unique terms and conditions and may not be combined with the Student Loan Consolidator Private Consolidation Loans.
Look at the benefits of your current lender. There are only about ten lenders that will consolidate any private loans. Most companies require that you have loans with them to be eligible to consolidate with them.
You should shop around and as mentioned, there are few companies that don't have stipulations in order to use their consolidations or refinance programs. Here's a published list: http://finaid.org/loans/privateconsolidation.phtml.
The lender, not the government, dictates the interest rates provided and most are linked to the Prime Rate. The most often asked questions regarding consolidation of private student loans are the following. Is there a certain loan amount that must be considered for private consolidation of loans?
Yes, the minimum loan amount is $7,500. And the maximum amount is $300,000. How can I find out how much I owe and when my private student loans will be approved for consolidation? By reviewing your recent monthly statement and your on-line account balances.
And once your required documentation has been received, a loan decision, if approved, will begin the process of paying off the loans you listed for consolidation. And you will be sent a letter of the confirmation.
Regarding interest rates, what is the interest rate on my loan after the first year and can I make interest-only payments in my second year? On the first anniversary of your loan closing, the interest rate on your loan changes to Prime Rate plus 5 percent to 5.75 percent.
This will depend on your credit history or if you have a co-signer. During the second year, you are still eligible to make interest-only monthly payments. It is only on the second anniversary of the loan closing that you must make the principal and interest payments.
If you are unsure whether a loan may be eligible please call the customer support center at 866-496-5787.
Court helps people to learn about auto loans. You can read more of his work by visiting: http://whalehookloans.com
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