Consolidating Private Student Loans - Three Important Mine Fields to Consider
Many of us have a number of private lenders who helped finance our educations.
We are certainly better off for our years of learning but our stress level and wallets may be suffering under the mountain of debt that was accumulated during those years of learning.
Don't despair, you're not alone.
Many graduates are dealing with the economic realities of paying off the often massive loans that financed their shiny diploma.
Your education was well worth the effort and expense but maybe you're paying more than you need to.
Student debt consolidation may be your path to lower payments, streamlined paperwork and less stress.
Most of us have a bunch of loans from a bunch of private lenders because school is expensive!Most lenders don't shoulder the burden wholly so we are left paying different monthly payments, at different rates of interest to different lenders.
Don't let this situation get you down, debt consolidation loans could be the answer! A debt consolidation loan is a loan that bundles up your debts, lowers your interest and streamlines your monthly payment to one lender.
This sounds like a dream but it is reality and you can take advantage of the many private lenders out there to consolidate your private student loan debt.
There are three important mine fields to consider when seeking out a debt consolidation loan.
1.
Interest Rates.
Gather your student loan information and figure out the average or weighted interest rate you are currently paying across all of your private student loans.
A good debt consolidation loan will have a lower rate than what you are paying now.
There are online calculators if you need help finding your weighted interest rate.
When negotiating with lenders, your target is to get a debt consolidation loan below your current rate.
If you can't get this, a debt consolidation loan probably doesn't make sense for you.
Negotiate with your lenders and stand your ground.
2.
Fees, Fees, Fees!Potential lenders have varied policies about fees so research your lender carefully and ask the right questions.
Check with your lenders about application fees, credit check fees, late fees and any other hidden fees you might not expect or be aware of.
Your lender shouldn't charge you application fees or credit check fees, if they do, move along or ask them to waive those fees.
Late fees are a part of the lending process but check how much these fees are and what other penalties might coincide with late payment on your debt consolidation loan.
These fees and polices can vary and you want to pick the best one for your needs.
3.
Don't Be Fooled by Fancy Promotions or Gimmicks.
Lenders have lots of flashy promotions to entice borrowers to their doorsteps.
Once inside, you might find that the loan you sign the dotted line on is not such a great deal after all!Read the fine print, don't get sucked in by the gimmicks or the too good to be true rates.
If something sounds too good to be true, it just might be.
You don't want to end up with a variable rate loan or a debt consolidation loan that is above the interest rates you're paying now.
We are certainly better off for our years of learning but our stress level and wallets may be suffering under the mountain of debt that was accumulated during those years of learning.
Don't despair, you're not alone.
Many graduates are dealing with the economic realities of paying off the often massive loans that financed their shiny diploma.
Your education was well worth the effort and expense but maybe you're paying more than you need to.
Student debt consolidation may be your path to lower payments, streamlined paperwork and less stress.
Most of us have a bunch of loans from a bunch of private lenders because school is expensive!Most lenders don't shoulder the burden wholly so we are left paying different monthly payments, at different rates of interest to different lenders.
Don't let this situation get you down, debt consolidation loans could be the answer! A debt consolidation loan is a loan that bundles up your debts, lowers your interest and streamlines your monthly payment to one lender.
This sounds like a dream but it is reality and you can take advantage of the many private lenders out there to consolidate your private student loan debt.
There are three important mine fields to consider when seeking out a debt consolidation loan.
1.
Interest Rates.
Gather your student loan information and figure out the average or weighted interest rate you are currently paying across all of your private student loans.
A good debt consolidation loan will have a lower rate than what you are paying now.
There are online calculators if you need help finding your weighted interest rate.
When negotiating with lenders, your target is to get a debt consolidation loan below your current rate.
If you can't get this, a debt consolidation loan probably doesn't make sense for you.
Negotiate with your lenders and stand your ground.
2.
Fees, Fees, Fees!Potential lenders have varied policies about fees so research your lender carefully and ask the right questions.
Check with your lenders about application fees, credit check fees, late fees and any other hidden fees you might not expect or be aware of.
Your lender shouldn't charge you application fees or credit check fees, if they do, move along or ask them to waive those fees.
Late fees are a part of the lending process but check how much these fees are and what other penalties might coincide with late payment on your debt consolidation loan.
These fees and polices can vary and you want to pick the best one for your needs.
3.
Don't Be Fooled by Fancy Promotions or Gimmicks.
Lenders have lots of flashy promotions to entice borrowers to their doorsteps.
Once inside, you might find that the loan you sign the dotted line on is not such a great deal after all!Read the fine print, don't get sucked in by the gimmicks or the too good to be true rates.
If something sounds too good to be true, it just might be.
You don't want to end up with a variable rate loan or a debt consolidation loan that is above the interest rates you're paying now.
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