Best company for consolidating private student loans
At first glance, private student loans might appear to have lower interest rates than federal student loans – but those lowest advertised rates are only for loan applicants who have excellent credit scores.
The average college student won’t qualify for these rates or will be forced to sign with a cosigner.
In some cases, if your credit history is weak, you may need one to be eligible. The primary one is that you may be able to get a lower rate on your loan. Once the borrower is no longer enrolled in school and has made a certain number of on-time payments, ranging from one year to four, they can apply to release the cosigner.
Look for fixed rates, so the advantage of that lower rate isn’t negated by the fluctuations of a variable rate. There are additional conditions that may need to be met to get a cosigner release, but these vary by lender. Chief among them is that the cosigner takes responsibility for all payments the primary borrower doesn’t make.
We did research on the top private student lenders and came up with some criteria by which you can judge which private student loan is the best for you.
Getting a Cosigner You may want to consider getting a cosigner on a loan.
Lend Key has the shortest cosigner release period and longer forbearance than other lenders.Most federal student loans also don’t require credit checks to qualify.If you graduate and work in public service – i.e., for the government or a qualifying nonprofit – the federal government also offers loan forgiveness options.Before you go to a private bank or lender, though, it’s important that you take advantage of all the resources offered by the federal government.This is because federal loans have lower rates and offer better repayment terms than private student lenders.Federal Student Loans The federal government has a robust set of loans that can help students make college more affordable.Federal loans generally have lower, fixed interest rates and can give borrowers more repayment options than private companies.Also, many student loans have variable rates, which means they can fluctuate based on changes in the market.Private lenders have no obligation to offer forbearance periods or to defer payments due to hardship.Student loans are considered higher risk than car loans, house loans and other loans you can get from a local bank.You will have to go to a lender that specializes in student loans or to a bank big enough to offer them.