Consolidating private student loan debt
They are now offering borrowers a way to consolidate their private loans at rates as low as 4.75 percent.
Is it possible to consolidate and if it is, any organization you would suggest? federal student loan consolidation, and it's crucial to understand how it works before going into it. " data-reactid="14"Yes, there are options for private student loan consolidation but it's a much different animal than federal student loan consolidation, and it's crucial to understand how it works before going into it."When we started (in 2012) there was only one lender offering federal and private loan refinancing," Dash says."There are now more than 10." " data-reactid="23"(Tip: First, of course, you have to know what type of loan you have. Check the National Student Loan Data System database which lists virtually all federal loans.In the Federal program, virtually everyone is eligible because their old Federal loans and the new Federal consolidation loan do not require a credit score for approval.
Private consolidation loans are offered by banks and credit unions (not the Federal government) and are credit-based and generally require strong credit to be obtained.Private lenders have never been motivated to offer their customers loan consolidation at lower rates when they could keep them locked in at higher ones.