Private loan consolidation means combining your outstanding private education loans into one loan, including private loans used to cover educational expenses such as tuition, housing and/or other educational expenses. This is in addition to already consolidated private educational loans. Consolidating your private educational loans with private student loans allows you to lower your monthly payment significantly by lengthening the term of your loans, while receiving a low variable interest rate. This is possible even if your private educational loans are held by more than one lender or are of different types.
Eligibility
Eligibility to consolidate private educational loans with private student loans is based on the following criteria:
Eligibility
Eligibility to consolidate private educational loans with private student loans is based on the following criteria:
■ Be at least 21 years old at the time of application
■ Have a minimum of $7,500 in US issued private educational loans
■ Are in repayment status of private education loans at the time of application
■ Have good credit standing
■ Are a US citizen or permanent resident (eligible non US citizen)
Benefits
With private student loans, consolidating private educational loans permits several benefits.
■ Have a minimum of $7,500 in US issued private educational loans
■ Are in repayment status of private education loans at the time of application
■ Have good credit standing
■ Are a US citizen or permanent resident (eligible non US citizen)
Benefits
With private student loans, consolidating private educational loans permits several benefits.
■ Simple repayment terms
■ Low, variable interest rate
■ No penalties for prepayment
■ One low convenient monthly payment to one lender rather than various monthly payments
Process
The process of consolidating your private educational loans is made simple and fast.
■ Low, variable interest rate
■ No penalties for prepayment
■ One low convenient monthly payment to one lender rather than various monthly payments
Process
The process of consolidating your private educational loans is made simple and fast.
■ Begin an application either online or over the phone to receive an instant credit decision, interest rate information, and fees.
■ Sign and return your completed application. Consolidations are normally complete in approximately 6-8 weeks.
■ Continue to make payments to your current lender until you are notified that the consolidation is complete.
■ Receive your new repayment information in the mail.
Payment Options
■ Sign and return your completed application. Consolidations are normally complete in approximately 6-8 weeks.
■ Continue to make payments to your current lender until you are notified that the consolidation is complete.
■ Receive your new repayment information in the mail.
Payment Options
■Repayment begins approximately 30 days from the time your private consolidation loans is funded.
■ The repayment term is a maximum 30 year plan, regardless of private consolidation balance. You may choose one of several repayment options for your private loan consolidation with Mortgage Loan , and there is NO penalty for early repayment
◦Equal Payments: Standard payments are made according to principal and interest over a 30 year term. This equal payment option allows equal monthly payments over the life of the loan
◦Select 2/Graduated Payments: Allows for interest-only payments for the first two year of repayment. Beginning the third year, payments increase to level installments of principal and interest payments for the remaining life of the loan.
◦Select 5/Graduated Payments: Allows for interest-only payment for the first two years of repayment. During the third through fifth year, payments increase to include a portion of principal. Beginning the sixth year, payments increase to level investments of principal and interest payments for the remaining life of the loan
Tax Benefits
Consolidate your private education loans and take advantage of tax benefits offered by the Federal Government.
■ The repayment term is a maximum 30 year plan, regardless of private consolidation balance. You may choose one of several repayment options for your private loan consolidation with Mortgage Loan , and there is NO penalty for early repayment
◦Equal Payments: Standard payments are made according to principal and interest over a 30 year term. This equal payment option allows equal monthly payments over the life of the loan
◦Select 2/Graduated Payments: Allows for interest-only payments for the first two year of repayment. Beginning the third year, payments increase to level installments of principal and interest payments for the remaining life of the loan.
◦Select 5/Graduated Payments: Allows for interest-only payment for the first two years of repayment. During the third through fifth year, payments increase to include a portion of principal. Beginning the sixth year, payments increase to level investments of principal and interest payments for the remaining life of the loan
Tax Benefits
Consolidate your private education loans and take advantage of tax benefits offered by the Federal Government.
• By way of the Taxpayer Relief Act of 1997, the Government now permits individuals to deduct the interest paid on loans taken out to attend eligible educational institutions
• Ability to deduct up to $2,500 in student loan interest. Taken as an adjustment to income, allowing the deduction regardless if you itemize deductions on Schedule A of your 1040.
• Deductions phased out for taxpayers with adjusted gross incomes of $50,000 to $65,000 [single filers] and $100,000 to $130,000 [married filing jointly]. Taxpayers who are married but file separate returns are not eligible.
• Ability to deduct up to $2,500 in student loan interest. Taken as an adjustment to income, allowing the deduction regardless if you itemize deductions on Schedule A of your 1040.
• Deductions phased out for taxpayers with adjusted gross incomes of $50,000 to $65,000 [single filers] and $100,000 to $130,000 [married filing jointly]. Taxpayers who are married but file separate returns are not eligible.
Private Student Loan Consolidation
Federal 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 Sallie Mae Signature, Citibank, Bank of America, and NextStudent. The next step in repayment is private student loan consolidation.
It is important to consolidate your private student loans because they tend to have higher interest rates, shorter payback periods, and a lack of certain protections in comparison to federal loans. The sooner you can consolidate your private student loans into one loan and potentially lengthen your repayment period, the better off you will be. If your current student loan debt exceeds 8% of your income, or if you have borrowed more then $5,000 in private loans, you should consolidate your debt to avoid default and prevent negative effects to your credit. Remember not to consolidate your private and federal student loans into a single consolidation loan because you will lose the benefits of your federal loan.
