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Private Student Loan Consolidation
Federal Student loans are often not enough to cover the full expense of a college education. Therefore, private loans are sometimes a necessary choice for students seeking higher education. You may have received these private loans from such top loan providers as Citibank, Bank of America, and NextStudent. The next step in repayment is private student loan consolidation.
There are a number of benefits to consolidating your private student loans--if you currently have multiple loans and loan payments and consolidate your private student loans, you would have one monthly payment. You may also be eligible for a lower interest rate. If your current student loan debt exceeds 8% of your income or if you have borrowed more then $5,000 in private loans and are struggling financially, a consolidation loan can help you avoid loan default, which negatively impacts your credit rating.You cannot You cannot consolidate private and federal student loans into a single consolidation loan because you lose the benefits of your federal loan.