A private consolidation loan can help you effectively manage your monthly payments following graduation. By lowering your monthly private student loan payments, you can afford the other expenses associated with starting a career and life after college.
Is a co-signer required?
If you are an undergraduate or recent graduate, yes, a co-signer will likely be required by your lender. This is entirely based on credit history and if the lender has any specific internal requirements for processing consolidation loans; some only look at credit, others want the assurance of a borrower having a cosigner. However, borrowers with strong, established credit can consolidate their loans (both undergraduate and graduate loans) without a co-signer. We recommend that both undergraduate and graduate degree holders apply with a qualified co-signer, as it will greatly increase their chance for approval and could provide a lower interest rate.
Which types of loans are eligible to be consolidated?
Most lenders will accept private student loans disbursed to any nationally-accredited school. Check with your lender for any special internal criteria.
What information will I typically need to complete a consolidation application form?
You will need to have the following information available for you and your co-signer (if applicable):
Name, address and social security number
Names, addresses and telephone numbers of two personal references
Monthly Income and expense information
For Each of the loans to be consolidated:
Loan Account Number
Name, address and telephone number of each loan servicer (on your monthly billing statement)
Outstanding loan balance/expected payoff amount
Get Started Now
How long will it take for my loan to be consolidated?
Generally speaking, you should expect the entire private loan consolidation process to be completed in less than 45 days. This is of course dependent upon your ability to provide the required documentation regarding your income, expenses and underlying private student loans. If the application load of your lender is severe, the process may take longer.
Where do I find out how much I owe on my current private student loans?
By reviewing your most recent monthly statement from the student loans servicer(s) who are currently handling your loan(s). In addition, your servicer is likely to provide on-line access to your account balances. Please check your monthly statements online.
Is there a minimum loan amount?
Yes, most lenders require a combined minimum balance of around $5,000 or higher on all involved loans for consolidation.
Is there a maximum loan amount?
Yes, this figure depends on the policies of your lender. Check the website of your consolidation lender or contact them by phone for more details.
Does my school need to be involved?
No, school participation is not required.
If you are still in school, we would caution you to wait until after graduation or when your current deferment has ended. Of course, if you're in a position to make payments in advance of those two events, we would urge you to begin the process now to simplify repayment and pay down your student loans early.
Do I have to keep making payments on my existing loans while I'm consolidating?
Yes, we recommend that while in the process of applying for the consolidation loan that you continue making your on-time monthly payments. This will assure that your credit remains in good standing.
No comments:
Post a Comment