Getting private student loans is a good way to finance your educational tuition when federal student loans cannot cover it. Prior to paying the debts back, consolidating private student loans is a common thing to do to manage the payment. Is it beneficial to get your private student loans refinanced? Get better information about private student loans consolidation from these FAQs below:
FAQ #1: Why should I consolidate my private loans?
As you might apply several loans from private institutions to finance your education, it will be easier for you to manage the monthly repayment of these loans after you graduate. Refinancing your private student loans will result a uniformed interest rate of all the loans. Besides, you will also get more advantage since you will have longer payment time and lesser monthly payments.
FAQ #2: Is it possible to consolidate my private loans with my federal loans?
Commonly, it is not possible to consolidate both types of loans. The reason behind this is that the difference in interest rates. When you borrow from federal institution, you will get lower interest rates when compared to borrowing from private providers. The low interest rates of the federal loans cannot be applicable for private loans.
FAQ #3: Do I need a co-signer for the application?
It is common for the loans providers to require a co-signer for undergraduate or recently graduated borrowers. These lenders may need you to have a co-signer for internal requirements or merely for looking at credit. For the latter reason, if you have a healthy background of credit, even if you are an undergraduate, it is possible that you won't need any co-signer. Supposed if you need one, it is suggested that you choose a co-signer with strong credit background; he or she will help you increasing the chance of consolidation approval as well as getting lower interest rate.
FAQ #4: Which information should I provide to get my private loans consolidated?
Usually, you and your co-signer will have to provide: - Your name, address, and social security number - Names, addresses, and contact numbers of 2 of your personal references - Records on your monthly incomes and expenses - Information on the loans to be consolidated which include Loan Account Number, contact info of the loan providers, and outstanding loan balance.
FAQ #5: How long will my consolidation process be completed?
Maximum time of consolidation process takes 45 days. You will expect to have active consolidated private loans around the time. How long will the process take also depends on your side. If you are able to provide all the documentation (i.e. expenses, incomes, and underlying private student loans) quickly and completely, the consolidation provider will finish the work faster.
Consolidating private student loans helps you managing your student loans payment. Get more info about other financial tips from our website.
No comments:
Post a Comment