Category: Student Loan

Tips On How To Consolidate My Student Loan

Consolidating both private and federal student loans can be a very excellent decision. Having some these advances can prove to be detrimental to your finances. The interest rates which these loans carry can at times be very steep running to the upwards of 6%.

As such, consolidating them will allow you to access much more affordable interest rates. This will, in the long run, save you a lot of cash. Generally speaking, there are two ways of how to consolidate my student loan currently. These are through private consolidation companies or the federal student loans consolidation program.

Private student loan consolidation

There are numerous companies that offer tstudent loanhese services. As this business is relatively new, most of its operators aren’t household names. The leading lenders of this kind include SoFi., CommonBond, DRB, LendKey to mention but a few.

Quite a large number of these firms demand no fee at all for student loans consolidation. Each of them also offers distinctive programs that come with varying benefits. It is, hence, wise to compare several of them to arrive at the one which best suits your needs and preferences.

Advantages of private student loans consolidation

The main benefits of opting for these services is you can save a sizeable sum of money on the interest rates you pay. Consolidation of your student loans via these lenders permits to greatly reduce your rates, thereby saving thousands of dollars over the duration of your loan. Some of these private companies demand interest rates, which are lower than 2% for highly qualified applicants.

The exact rates you will be able to obtain can be determined by your credit score, the loan duration, and the interest rates type. Speaking of interest rates types, there are usually two main options, which are the variable and fixed varieties. The fist is offered at significantly low rates such as 1.50%. While fixed interest rates are consistent throughout the loan duration.

Federal student loan consolidation

Alternatively, you can decide to consolidate your student loans into the department of education’s direct consolidation program. This federal program has been established to assist borrowers to obtain effective control of their debt. While also making repayment easier and convenient.

wallet In this way of how to consolidate my student loan, you will have only a single monthly repayment and a new interest rate. This rate will be a weighted average of your past interest rates.

However, it is important to note that you won’t be able to save plenty of money through this program. Essentially, your overall loan cost and interest rate will remain virtually the same. You also cannot consolidate private student loans through this program.…

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How To Refinance Student Loans

It is quite common for borrowers to refinance mortgages and other loans once their interest drops. But did you also know that it is possible to refinance student loans too? In the past, it would have been hard to come across options on how you can refinance your student debt. But thanks to promising developments, debtors can now get this load of debt off their backs. It is estimated that about $1 trillion is owned by students as loans.

President Obama has done his part by expanding a program that limits one to repay his/her federal student loan to 10% of his/her income. The US Senate is also set to introduce a bill that gives more protection to students who take private loans.


notebook and laptopInstitutions in the private sector are also coming up with innovative ways on how students can repay their loans comfortably. Refinancing can be a bit difficult using the big banks, but these innovative start-ups have figured out how to make profits by helping individuals clear their student loans.


Pave, a company based in New York, applies crowd funding to buy out existing loans. This is then repaid according to the income of the borrower. Pave loans end up costing almost the same as other loans even without considering the fees. This is large because of fees. However, the company offers more flexibility and forgiveness than most banks would when it comes to repaying.

For instance, if a borrower makes less than one and a half times the poverty level, their repayments can be deferred. Pave also factors in the borrower’s profession and repayment ability before coming up with a repayment rate.


money and wallet SoFi is another company based in San Francisco that offers low fixed rates, variable interest and career coaching to its borrowers. In the long run, you will end up saving an average of $9400 over a period of 10 years. However it is not as flexible as Pave for it only considers graduates who are highly qualified. SoFi also offers a six-month grace period for borrowers trying to get into entrepreneurship, though the interest will still continue accumulating.


Upstart, a startup founded by former Google employees also aims at saving borrowers money. It, however, considers one’s former school, academic performance and work history before lending. Upstart only lends low-interest loans to students it considers as high quality. The company is backed up by Mark Cuban and Eric Schmidt.

A couple of bigger banks consolidate student loans, making it easier for borrowers to make a payment every month. However, it is hard to refinance student loans with these banks. Credit unions are somehow easier to work with.…

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