Start Consolidating a private student loan

Consolidating a private student loan

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.

While a lower interest rate is good news, your new loan may not come with all the borrower benefits associated with government loans.

For example, borrowers with federal student loans can take advantage of federal income-driven repayment programs, or benefits like loan forgiveness, which borrowers with private student loans typically don’t have access to.

Current data suggests that there is $99.7 Billion in outstanding private student loans.

With 90% of private student loans having a co-signer, these student loans can pose a serious and stressful problem for Unfortunately, unlike Federal student loan income driven and forgiveness programs which are guaranteed for those who qualify. Re-financing/consolidation is done through private lenders (see our page here for names of some private student loan lenders).

Generally there are two ways that settlement companies settle private student loans In both cases the lender sees that the borrower can pay a large chunk of the debt up front and thus is more willing to take an offer of settlement.

This varies tremendously, some borrowers are unable to settle, but many settle for significantly less than the original loan.

Connext Connext Private Refinance Loan Powered by Relia Max allows you to refinance federal and private student loans (up to $250,000) into one manageable payment. Earnest Earnest allows qualified borrowers to refinance up to $500,000 at low rates. Student loan consolidation: Consolidation is the process of combining your government loans so that you can make a single monthly payment.

We recommend the lenders above because we thoroughly evaluated them. Can I consolidate private and federal loans together? You can also extend the term of your loan, at the same interest rate.

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.

Check Your Rates Now Borrowers save an average of $18,688 when they refinance their student loans using Credible.