What Kind Of Loan Can I Get To Consolidate My Private Student Loans?
I have 0,000 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?
You’re right, there are a lot more companies that deal in federal student loans than there are companies dealing in private student loans. However, this is changing. As tuition rises and the student loan debt increases, companies have responded to the need for private loan consolidation. Sallie Mae — one of the biggest names in student loans — introduced a private loan consolidation product within the last year. I would encourage you to read up on the various companies that offer private student loan consolidation and pick one that you’re comfortable working with long term. Among the reputable companies I’ve found who offer this service are…
- Sallie Mae: http://salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/private.htm
- Key Bank: https://www.key.com/html/H-1.39.b.html
- Wells Fargo: https://www.wellsfargo.com/student/repay/private_consolidation/?_requestid=13154
- Nelnet: http://www.consolidation.nelnet.net/PvtDescription.asp
You can look into *other* types of loans as well. When home equity loan rates plummeted, a lot of borrowers jumped on that bandwagon and took out a home equity loan which they then used to pay off their student loans. The best part? There is no limit to how much home equity loan interest you can deduct on your taxes, while there is a limit to 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 this option in the back of your mind. You can always take out a home equity loan later on and use it to pay off whatever private consolidation loan you decide to obtain today.
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