Consolidating loans with different interest rates
Call or visit the websites of popular lenders for private student loans, including Sallie Mae, Chase, Wells Fargo, Next Student or Student Loan Network, to determine which organization has lowest interest rates, origination fees and other loan terms. If you have a co-signer, he needs to complete part of the application as well.In general, you will need to know the name of each lending company at which you have a private student loan, your account numbers and the balances on your loans.If you can find someone with excellent credit who is willing to take the risk of co-signing, this can further lower your interest rate.However, the consolidation loan and all of the payment history will appear on the co-signer's credit report and the co-signer is liable for the payments if you stop paying the loan.Pay your bills on time, pay down any credit card debt and do not apply for any new credit in the months leading up to your student loan consolidation.These actions will improve your credit score, which plays a large role in determining the interest rate you get on your consolidation loan.Members of the class of 2019 who took out student loans, owe an average of ,172 and their payments are just under 0 a month.That is a sizeable and unwelcome graduation gift so it’s important to know how to minimize the damage.
At this point, your old loans will all be paid off and you will receive instructions on how to make payments on your new consolidation loan.
You are left with one payment to one lender every month.
The typical student borrower receives money from federal loan programs every semester in school.
Consolidation is a way to make repaying student loans more manageable, and possibly less expensive.
You combine all your student loans, take out one big consolidation loan and use it to pay off all the others.