• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Financial Wellness

You are here: Home / Student Loans / Consolidate Private Student Loans Tips

Consolidate Private Student Loans Tips

July 28, 2017 by Katie Bentley

When you consolidate private student loans, you’re essentially gathering all your private student loans into one loan.

This makes payments easier to track.

The only drawback is that you pay off more in interest for the duration of your new consolidated loan.

However, the ease of not having to worry about separate monthly payments may just be worth the extra charges.

Check out what else you’d need to watch out for before you sign with any loan consolidation companies.

Practical Advice to Consolidate Private Student Loans

1. Check Credit Score Requirement

Check Credit Score Requirement | Consolidate Private Student Loans Tips

You need to meet certain credit score requirements in order to proceed with student loan consolidation.

One of them is having a credit score of at least 640.

Loan payments made on or before their due dates helps bring up your credit score.

2. Understand What You’re Getting Into

Understand What You're Getting Into | Consolidate Private Student Loans Tips

You need to understand that you give up certain advantages when you refinance a federal loan into a private loan for consolidation.

Examples of these are the following: federal loan forgiveness programs, interest-free deferment on subsidized federal loans, and access to income-driven repayment plans.

In addition to these, you also need to note the additional interest you pay over the extended amount of time.

Although you are lowering your monthly payments, you technically pay a few more thousands of dollars throughout the lifespan of the loan.

3. Don’t Quit A High Paying Job

Don't Quit A High Paying Job | Consolidate Private Student Loans Tips

Lenders charge you lower interest rates if they see that you’re in a stable period.

Reliable income is a definite requirement for all lenders, and odds are they’d be more than willing to offer assistance when they see you doing financially well.

4. Gather Selected Loans

Gather Selected Loans | Consolidate Private Student Loans Tips

The common misconception about consolidating student loans is each and every loan should be consolidated into one singular loan.

That, however, shouldn’t be the case.

You are allowed to handpick the loans you want to consolidate.

Tip: Gather high-interest loans you’ve garnered on your portfolio. These are the ones you want to consolidate to make monthly fees easier to pay and keep up with.

5. Compare Offers

Compare Offers | Consolidate Private Student Loans Tips

Some students get frazzled with all the payments they make in a month, they often sign off on the first consolidation offer they see.

In doing so, they’re stopping themselves from shopping for the best possible offer.

Remember your key purpose for consolidating and look at all the options available.

6. Consider a Cosigner

Adding a cosigner in your consolidation could help you land a lower interest rate.

This option is recommended if you have a parent or a family friend willing to help you out.

However, don’t get frustrated if they decline the offer.

After all, co-signing is risky as it puts the individual involved at a liability.

Finding a provider that offers a cosigner release after just 12 months is one way to work around this.

7. Wait Until the Loaner Starts Paying off the Loans

A post shared by findstudentscholarships.com (@findstudentscholarships) on Jul 4, 2017 at 2:09pm PDT

An agreement from a debt consolidation company isn’t enough.

Unless you are absolutely sure that the company has started paying off your loans, continue to pay off your initial monthly expenses.

This helps reduce any potential late penalties you’d have to shell out of your own pocket.

Find out more about how to consolidate private student loans by pressing play on the video below:

Here’s a last bit of advice before you say yes to consolidation: Don’t forget to consider the new loan period when you consolidate private student loans.

It’s definitely of great importance to have a clear idea of how much you should set aside every year to pay off your debts.

Do you have any experiences in consolidating private student loans? Tell us your stories in the comments below!

Up Next: Your 5 Step Guide to Getting Out of Debt

Filed Under: Student Loans

Previous article: Debt Repayment – How To Start Digging Out Of The Hole
Next Post: This Week On Financial Wellness…

Primary Sidebar

Follow Us







RECENT ARTICLES

  • What is Chapter 11 Bankruptcy and How it May Protect BusinessesWhat is Chapter 11 Bankruptcy and How May It Protect Businesses?
    Chapter 11 bankruptcy isn’t uncommon, yet many fail to see its purpose. Most people have heard of Chapter 11 vs Chapter 7 liquidation, or even [...]
  • Personal Loans After Bankruptcy Discharge: Is This Possible?Personal Loans After Bankruptcy Discharge: Is This Possible?
    Applying for personal loans after a bankruptcy discharge? Getting approved may not be easy, but it still is possible. It will definitely require [...]
  • How to Stop A Student Loan Wage GarnishmentHow to Stop A Student Loan Wage Garnishment
    Student loan wage garnishment is the last thing you want to experience while paying student debts. Monthly wage deductions could ruin your spending [...]
  • Don’t Miss These Posts On Financial Wellness..
    Here’s what happened on Financial Wellness 1. How to Start Investing in Stocks Even With Debt If you’re in debt, then you might be afraid [...]
  • Credit Repair Credit Cards: Learn to Rebuild Your CreditCredit Repair Credit Cards: Learn to Rebuild Your Credit
    Trashing your credit score is so much easier than building a solid credit rating. It’s no wonder so many people seek out credit repair credit [...]
Instagram did not return a 200.

Connect With Us On Instagram!

Footer

Financial Wellness

© 2021
FinancialWellness.org
All rights reserved

  • Privacy Policy
  • Terms and Conditions
  • Contact Us

This Copyrighted Material may not be republished without express permission. The information presented here is for general educational purposes only. Material Connection Disclosure: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to/from this page and may receive commissions from purchases you make on subsequent websites. You should not rely solely on information contained on this page to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.

FOLLOW US

  • Facebook
  • Twitter
  • Instagram