Consolidating college loans sallie mae
Choosing a lender for your consolidated loan may be as easy as contacting your original lender, or you may be better off researching a variety of banks and lending institutions to find the best possible terms and conditions.
Researching a consolidation loan requires the same level of attention that was given to all of your original college loans, and you will want to consider interest rates, application and discharge fees, and possible penalties for early repayment.
You will also want to consider the life of the loan and all repayment terms before signing any agreement.
When you have found a lender that you are comfortable with, they will pay off all of your outstanding loans, including any penalties and fees for early discharge, and will underwrite your new consolidated loan.
This new loan agreement helps students to more easily manage their debt by reducing all payments to one more affordable monthly payment.
For many students, loan consolidation can mean the difference between totally discharging their college loans and going into default.
Banks and private lenders that offer college loans often offer student friendly repayment terms.
When applying for a consolidated loan, the bank will consider the applicant’s monthly income as well as their credit history.Consolidating your student loans begins with contacting a private lender.Banks and private lending institutions that offer student loan packages often also offer loan consolidation programs.Again, before signing any loan agreement, be certain that you understand all of your responsibilities as a borrower.Students applying for a consolidation loan will find that banks and other private lending institutions have made the process relatively easy.Students with little or no credit history, or those with a poor credit report, may find that they will need to apply with a credit-worthy cosigner in order to be approved for a consolidation loan.Typically, cosigners can be relieved of their responsibilities after the primary borrower has made the requisite number of timely payments, thus allowing the primary borrower to build a solid credit history.But all too often those loans become a financial burden to graduating college students, and can leave them in very real economic distress.Following graduation, students often find themselves with better job prospects, but with no immediate increase in income.Many lenders will allow students to apply online through their dedicated website.The application process should only take a few minutes.