It is no lie that going to college is an expensive adventure. Between tuition, fees, housing, food, cell phone bills, insurance and car payments, your expenses can really add up. And unless you are lucky enough to have the money to pay for those expenses, you will probably be paying for school with student loans. Federal loans can be easy to obtain, but what do you do when you need more money than the limits on federal loans can provide? That is where private loans come into play.
You can receive a private student loan from a number of lending companies who have a variety of interest rates and benefits, so make be sure to shop around before settling on a loan provider.
Bad Credit? You May Still be able to Receive Funding through Private Loans
One common misconception of private loans is that if you have a bad credit rating then there is no chance that you will be able to receive any kind of funding from private loans. Once in awhile, this is the situation, but there are still many companies who will offer you student loans. Instead of denying you altogether, some companies will offer you lower limits, or have higher fees and interest rates attached to your loans, but at least you will still be able to fund your schooling.
Another way to increase your chances of obtaining private loans with less-than-perfect credit is to get a cosigner to sign on the loan with you. This may help you to avoid some of the excess costs involved with higher interest rates and fees. By adding a cosigner to your private loan, he or she is basically stating that they take responsibility for the loan should you become financially incapable of doing so. The lending company will then base your interest rate and fees off of the interest rate of your co-signer.
Consolidating Your Private Student Loans Through EdFed
Chances are that if you are able to receive funding from private loans, you have more than one. Wouldn't it be great to be able to combine these loans in to a single loan, with only one monthly payment? EdFed can do all of that for you, in addition to saving you thousands of dollars off of your loans! With a private student loan consolidation with EdFed, your multiple loans will become a single loan.
When you consolidate your private student loans with us, we offer you a low, variable, interest rate and an immediate 0.25% interest rate reduction when you chose to enroll in our automated debit payment program. In addition to that, that we offer several repayment options that can help you lower your monthly payment by almost half! Also, there are no prepayments penalties, so you can pay off your loan balance as early as you choose. All of these benefits will help you save thousands of dollars over the life of your loan!
Consolidating through EdFed can also improve your credit rating and help your financial status, which will help you to be approved for loans you may take out in the future!
Add a Co-Signer To Save Even More
To save even more, you may enlist a cosigner to help you to lower the interest on your consolidation by lowering your already-low interest rate by an additional 0.75%! Once you qualify for our private student consolidation loan on your own, you have this option to save!
Give Us a Call Today
EdFed prides itself not only on our ability to help our customers save money, but also on our industry leading customer service. When you call EdFed, a professional consolidation representative will be on the other end, ready to answer any of your questions. EdFed is the perfect complement to your education experience.
Article Title : Private Student Loans and Consolidation
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How EdFed Helped others!
EdFed helped me out a lot! My student loan balance was not as high as most of my friends, so I didn't even know if consolidating would be worth my time. The loan counselors at EdFed really explained the benefits of consolidating and took the time to do a comparison of my total loan costs with and without consolidating. Even though my loan balance was not large, my monthly payments were reduced by almost 50% through my EdFed loan consolidation! This provided a lot of relief. Now, I know I can make my student loan payments, and I still have plenty of money to do the things I want to. Thank you, EdFed, for walking me through this process. - Rochelle G. Chicago, IL
If your monthly debt burden for your federal student loans collectively equals or exceeds 20% of your total monthly gross income, you likely will be eligible for forbearance on your consolidation loan.
