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Private Loan Consolidation

What to consider when shopping for a private loan consolidation

  • Types of loans: Most private loan consolidation products don’t include federal student loans. If you are seeking a federal student loan consolidation, check out www.loanconsolidation.ed.gov for more details.

  • Interest rates: Some programs have options for either variable or fixed rate loans.

  • Minimum and maximum loan amounts: Some private loan consolidation programs have minimum loan requirement of $7,500 to $10,000. Likewise, some have maximums of $100,000 to $125,000.

  • School of attendance: Some private loan consolidation programs may only offer their services to a select list of schools. Know if your school is on it.

  • Income requirements: Most private loan consolidation programs require applicants to demonstrate a gross income of at least $15,000 to $24,000. If you can’t demonstrate a reliable income, using a cosigner with at least the minimum gross income will expand your options.

  • Credit requirements: Most lenders and consolidation products require a strong credit history. If you have struggled to make your existing private loan payments and/or have credit issues, you may not qualify for private loan consolidation.

  • Repayment plans: A number of programs offer flexible repayment plans like interest-only repayment for the first few years, graduated repayment (monthly payments that steadily increase over time), and various repayment lengths (up to 30 years).

  • Citizenship: Most lenders require that the borrower and cosigner, if applicable, be a U.S. citizen or permanent resident.