Categories: Student Loans

7 Debt Consolidation Programs for Your Student Loan Debt

For some individuals, debt consolidation programs serve as a great form of debt relief, and can be obtained through availing of refinancing programs.

 Consolidation of student loans aims to combine all existing loans into one account for the purpose of convenience and saving.

Here are some of the best programs available in consolidating student loans.

Best Debt Consolidation Programs

1. SoFi | Student Loan Refinancing

Sofi is one of the few finance companies that offers debt consolidation programs while simultaneously refinancing student loans, whether they are federal or private loans.

With a growing community of 350,000 and trust and security of $20 billion, this program continues to attract new members.

  • Variable Rate: From 2.815% to 6.740% APR
  • Fixed Rate: From 3.350% to 7.125% APR
  • Highlights: Federal and Private Loans | Unemployment Protection | Career Support | Refinance Parent PLUS Loans
  • Drawbacks: Not Available in Nevada | No Co-signer Release Option

2. Common Bond | Refinance Student Loans

With three refinancing programs, CommonBond allows you to merge student loans for lower interest rates.

Besides the variable and fixed rate programs, they also offer hybrid rate loans where the first five years will be based on a fixed interest rate, and the remaining five will be converted into a variable rate.

The edge of a hybrid program is to reduce monthly payments and total interest due.

  • Variable Rate: From 2.81 to 6.74% APR
  • Fixed Rate: From 3.35 to 7.12% APR
  • Hybrid Rate: From 3.77 to 6.22% APR
  • Highlights: Personalized Competitive Rates | Protection Through CommonBridge Program | Co-signer Release Available
  • Drawbacks: Not Available in Idaho, Louisiana, Mississippi, Nevada, South Dakota and Vermont

3. LendKey | Refinance Student Loans

LendKey is another company that provides a consolidation-refinancing program for student loans.

Like SoFi, they can combine federal and private student debts into one account with lower interest rates.

  • Variable Rate: From 2.67% APR
  • Fixed Rate: From 3.25% APR
  • Highlights: Flexible Options | Lowering payments | No Origination Fees

4. Citizen’s Bank | Education Refinance Loan

Citizen’s Bank offers fast and easy application of student loan refinancing with the option of consolidating your federal and private debts.

The main edge of their program is they do not charge extra charges for prepayment penalties, application and disbursement fees.

  • Variable Rate: From 3.63% to 7.63% APR
  • Fixed Rate: From 5.44% to 7.64% APR
  • Highlights: Loyalty Discount | Automatic Payment Discount | Co-signer Release Available

5. Earnest | Refinance Student Loans

With Earnest’s Refinance Student Loans Program, you get to merge your student loans plus pay less interest.

Also, you will be given more options in settling your debt by increasing payments anytime to pay off a loan faster, or save interest with their bi-weekly payment option.

In case of a fund shortage, you can also skip payments and pay them later.

  • Variable Rate: From 2.81% APR
  • Fixed Rate: From 3.35% APR
  • Highlights: Unique Precision Pricing| Better Data Analysis
  • Drawback: No Co-signer Release Option

6. Education Loan Finance | Education Loan Refinancing

Education Loan Finance lets you customize your student loans and create a repayment plan suitable for your budget.

This financial institution offers some of the lowest interest rates, which will allow you to save from extra charges.

  • Variable Rate: From 2.39 to 6.01% APR
  • Fixed Rate: From 3.19% to 6.69% APR
  • Highlights: Education Loan Finance Fast Track Bonus
  • Drawback: No Co-signer Release Option

7. College Ave Student Loans | Loans Refinancing Program

College Ave Student Loans gives you the option of making instant full payments or customize installments.

Like the option wherein the first two years you can pay just the interest payments.

Additionally, this program is suitable for fresh graduates who are seeking assistance in lowering their monthly payment in the next two years.

  • Variable Rate: From 4.13% to 7.13% APR
  • Fixed Rate: From 4.65% to 7.50% APR
  • Highlights: Flexible Repayment Terms
  • Drawback: Higher Variable Interest Rates

Watch this video by CBS News for some tips on paying off your student loan debt:

Paying off student loans burdens many college graduates and here lies the importance of debt consolidation programs.

These programs simplify the process of paying off your student loans, and can even bring savings on interest charges and other related transaction fees.

There are tons of programs available in the market and choosing the best deal depends on your status shortly after graduation.

Do you have any experience consolidating your student loan debt? Share us your thoughts in the comments section below.

Up Next: Refinancing Student Loans | Things You Need To Know To Avoid Mistakes

Katie Bentley

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Katie Bentley

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