Loan consolidation may be an option if you have multiple lenders and/or significant loan debt. It allows you to combine multiple private loans into one new loan. Students must be in repayment or grace status to consolidate. Repayment begins immediately.
Borrowers should beware that they will lose their federal borrower benefits if they consolidate their federal student loans into a private consolidation loan. Borrowers should always use federal loan options first before considering a private loan consolidation.
Students can consolidate with the lender of their choice. However, there are very few lenders that offer private loan consolidation due to the recent credit crunch. Listed below are a few lenders for you to consider.
CitiBank offers the choice of a fixed rate or variable rate consolidation, for more information call Priority Services at 1-800-846-1290.
American Education Services (AES) offers private loan consolidation at a variable rate using Key Bank and National Collegiate Trust as lenders. Click on the link below to access the online application.
www.aessuccess.org/manage/consolidate/private_loan_consolidation.shtml
Please Note: You may need to apply with a co-signer if you don't meet the minimum requirements. Non-certified private education loans cannot be consolidated.
Since interest rates are at record lows it may be wise for you to consider consolidating your loans to a new fixed rate loan.
Posted: April 28, 2008
