subject: Helpful Tips For Consolidating Private Student Loans [print this page] Given the recent world economic problems, there is an increased level of competition in the workforce. Those that have been fortunate enough to remain in work have seen companies trying to slash costs wherever possible. Graduating from college is therefore one of the most important goals for young people today, giving them the best opportunity to kick start a long and successful career.
The downside to graduating college is having to pay back your student loans. Many new graduates do not get high paying jobs right off the bat, so they find it difficult to pay back lenders. If you are in this situation, you may want to consider consolidating private student loans.
The good thing about federal loans is that they do not come with high interest rates. Private loans, on the other hand, do. Private banks and other financial institutions are in charge of this type of loan, and they take advantage of students who have trouble paying on time.
Now, you in all likelihood will not be able to consolidate your private loans and government loans. The former is the source of the high interest rates, so getting them taken care of is essential.
Here are some tips for private loan consolidation:
- Check your credit report and try to clean it up. If there are any errors, write to the credit bureau and have them removed. If you can improve your score, you will increase your chances of being approved.
- Determine whether the consolidation loan will be worth getting a few months down the road. If you can improve your credit report, your current interest rates might be lower in the near future. Think about the short term and the long term.
- Contact your current lenders and ask if any of them offer consolidation. If they really want to keep you as a customer, they will try to work with you rather than lose you.
- Get some online quotes from third party lenders. You can receive multiple quotes online by filling out a questionnaire about your financial situation, employment, etc. When you submit the questionnaire, you will be presented with quotes from different companies. The results depend on your answers. You will not qualify for every single loan.
- Read all the fine print before signing anything. Make sure you understand exactly what you are getting yourself into. Never sign up for a consolidation loan if the rates and repayment plan sound too good to be true.
