Consolidating student loans and private loans

13 Apr

It is quite common for people with student loans to deal with 10-12 lending institutions, which means 10-12 payments and 10-12 due dates each month.When you consolidate student loans – either federal or private – it’s one payment to one lender, once-a-month. Loan consolidation for student loans was created to make it easier for millions of borrowers to pay off their debt.In order to get a lender to actually negotiate reduced payments and/or a reduced principal balance, typically the borrower has convince the lender of two things: There are many different approaches to settle student loans and results are IN NO WAY guaranteed.

The Direct Consolidation Loan program is the right choice if your goal is to simplify the process and keep your options open for the many repayment plans available for federal loans. Your rate is determined by the weighted average of the interest on the loans being consolidated rounded up to the nearest one-eighth of 1%.Most people have heard of loan consolidation because of the Federal programs that are available and often believe that private loan consolidation works the same way, which is, unfortunately, not the case.In the Federal program, virtually everyone is eligible because their old Federal loans and the new Federal consolidation loan do not require a credit score for approval.For more information on student loan consolidation, see our page here.You can either attempt to do this yourself, or you can hire a debt settlement firm that specializes in settling debts.