Consolodating private student loans
Still, some companies, like So Fi and Lend Key, have found a way to offer students a competitive rate and a variety of repayment conditions.These are private loans where credit score and other conditions are weighed in.This will decrease the chances of accidentally missing a payment, and the lower payment will help you budget month-to-month.Student loan consolidation won’t strengthen your credit rating directly, but the benefits of consolidation can ensure your score continues to trend upward.The best way to improve your credit score is to make on-time monthly payments, and student loan consolidation can assist in that.Consolidation makes your student loans more manageable and easier to track by combining payments into one lower monthly bill.
Online lenders So Fi and Lend Key have jumped to the front of the line among newcomers who are becoming big players in a business that traditionally was dominated by banks and credit unions.
Before you consolidate, consider the following pros and cons: Note: Just remember, you must continue making payments after submitting your application until you receive notice from your servicer that underlying loans have been paid off.
You have the option to select the servicer of your choice (of which, Nelnet is an option) After your new Direct Consolidation Loan is complete, you may still add more eligible loans to your existing consolidation.
There are no fees associated with the Direct Consolidation Loan process. Your student loan servicer should be able to answer any questions you have about student loan debt consolidation.
To contact your student loan servicer log into your federal student aid account and look for contact information.student loan refinancing programs available in the private sector.
The form asks basic questions (name, social security number, date of birth, address, etc.); what loans you do and do not want to consolidate; and what repayment plan you will be using.