Consolidating school debt

Consolidating school debt

You apply for a consolidation loan through a private lender and qualify based on your credit score. If your credit score has increased by points or more, you may be able to get a lower interest rate by consolidating your debt with another lender.

Also, since the consolidation resets the term of the loan, this may reduce the monthly payment at a cost, of course, of increasing the total interest paid over the lifetime of the loan. There are several ways to consolidate student debt, depending on the types of loans you have, your budget and your credit. On the other hand, if you consolidate federal loans and use a hardship-based repayment plan, you must recertify annually.

How private student loanIn other words you can use

Hard credit inquiries or hard credit pulls are required for SoFi to be able to issue you a loan. You have the same fixed payments to cover unless you choose to refinance down the road. An excellent credit score can be a good reason to go private. Going through a private lender means you can choose your term and get a rate based on your credit score. Nevertheless, there are several options for refinancing private education loans.

How private student loan debt consolidation works A private student debt consolidation loan works in much the same way as a credit card debt consolidation loan. In other words, you can use federal consolidation and repayment plans for private student loans. These are private consolidation programs, so the interest rates are dictated by the lender, not the government.