Private Student Loan Consolidation - Your Answers to FAQs

Let us help you navigate your way through the sometimes confusing world of Student Loans by answering some of the most commonly asked questions about Private Consolidation Loans. Below are the 7 most asked questions about Private Consolidations.

When is the best time to seek a Private Student Loan Consolidation?

The best time to seek a Private Consolidation refinance is approximately 6 months or more after graduation, after you have had an opportunity to establish or improve your credit worthiness by having full time employment or have established an independent credit history. You can certainly consolidate your loan right after graduation, but most loans are in deferment for the first 6 months post graduation.

Why should I consolidate my Private Loans?

You may be able to reduce your monthly payments by extending the repayment period with a Private Loan Consolidation. Furthermore, you may be able to reduce your overall interest cost by combining several loans into one. If too many monthly payments are driving you crazy because you send payments to more than one lender, you might desire the convenience of one monthly payment.

What are the loan limits of a the Private Consolidation Loan?

The range from $7,500 to $100,000 for Private Undergraduate Student Loan debt and $7,500 to $150,000 for Private Graduate School debt.

What are the repayment options for a Private Consolidation Loan?

For qualifying borrowers, the Loan can be interest only for up to 4 years or can combine interest and principle.

What is the waiting period for loan approval?

Conditional approval is almost immediate. It may take at least 45 days to complete the loan, including the further review of loan documentation.

Should my Federal student loans be consolidated with my Private Student Loans?

Both Private Student Loans and Federal student loans can be consolidated, but they must be consolidated independently from each other. The two different categories should never be mixed when consolidating your loans.

Does a credit worthy cosigner reduce the cost of my Private Consolidation Loan?

Since the interest rate on a Private Consolidation Loan is based on the borrower's credit history, a borrower can get a lower interest rate if credit is enhanced by finding a credit worthy cosigner for the loan, such as a member of your family. Cosigner release is possible after twelve consecutive on-time payments of principle and interest.

Do a lot of research and choose the best option for you.