Pros and Cons of Private Student Loan Consolidation!
 

Pros and Cons of Private Student Loan Consolidation!

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Our list of pros and cons to Student Loan Consolidation! Learn about the best reasons to consolidate your student loans, and whether or not this loan product makes sense for you?

Our list of pros and cons to Student Loan Consolidation! Learn about the best reasons to consolidate your student loans, and whether or not this loan product makes sense for you?

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Pros and Cons of Private Student Loan Consolidation! Pros and Cons of Private Student Loan Consolidation! Presentation Transcript

  • Private Student Loan Consolidation What are the pros and cons?
  • What is Private Student Loan Consolidation? When a borrower has a number of private student loans, possibly with different lenders or different interest rates and wants to combine them into one loan with one interest rate, the loans can be consolidated. The lender will pay off all previous private student loans, and borrowers will owe that lender the combined amount, at one interest rate.
  • Overview: Private Student Loan Consolidation Pros • Lower monthly payment • One monthly payment to one lender • One interest rate Cons • Longer time in debt • Extended term could increase total interest paid over the life of the loan.
  • Only One Payment Everyone likes simplicity! Would you prefer to make multiple monthly payments to several lenders or one payment to one lender?
  • Loan Terms A Private Consolidated Student Loan creates new loan terms. Typically the borrower has a lower monthly payment for a longer period of time.
  • Private Student Loan Consolidation has the potential to lower your interest rate by 2 percent. This is not guaranteed. Interest Rate
  • Payment Flexibility This includes: • Interest only payments for the first four years of the loan • Forbearance during financial hardship
  • Private Student Loan Consolidation Borrowers Are Satisfied! A recent survey of consolidation borrowers by cuStudentLoans indicated that over 97% of consolidation borrowers were satisfied!
  • Student Example - Shelby Jenkins About Shelby: Ohio Northern University Six-year Pharm.D. program, completed in eight years Graduated with $300,000 in student loan debt Before Loan Consolidation: Monthly interest: ranged from 9% to 13% Total monthly payments = $2,800
  • Student Example - Shelby Jenkins After consolidating (with custudentloans.org): Shelby still had $300,000 in student loan debt, but refinanced $120,000 of her private student loan debt. After Loan Consolidation: Monthly interest on private loan debt: 5.5% Total monthly payments (private & federal) = $1,950 Monthly savings = $850
  • What Private Student Loan Consolidation Borrowers Are Saying “ I can put more money towards my loans to more quickly pay off debt” Shannon Sullivan-Rhode Island School of Design ‘10. “I can finally breath! I am still working to pay off my student loans, but I also have enough cash to pay my rent and other bills!” Ashley E. Rachael- Penn State University ‘11 “I’m paying less than half of what I was before refinancing” Nathanial Wiggins- University of Houston ‘09
  • What Private Student Loan Consolidation Borrowers Are Saying “I have been able to live more comfortably, more dependably save money, and apply more money to other debts that I have.” Cory Fackiner- University of Utah ‘12 “With interest rates staying low, I have saved over 4.5% on interest” Scott Schulte- The Ohio State University ‘11 “Gives me chances to put my money towards paying bills and saving to start a family” Lucas Harvey- Colby Sawyer College ‘08
  • Private Student Loan Consolidation Borrower Stories…. “I had my first baby in the last year and my monthly savings really helps out with the groceries. By the time my loan payment goes up my husband will be out of residency and have a well paying job, so it really worked out for us while we live off of a resident salary.” Emily Arthur- University of Drexel ‘10 “We have been able to provide a more comfortable lifestyle for our little daughter. We are also able to save more, and my husband has been able to start his own business. His dreams were put on hold due to needing the 9 to 5 corporate job in order to maintain our income steady so that we could pay our loans. Most of our income went to student loans.” Cynthia Carreon- Mount Saint Mary’s College ‘09
  • Does a Private Student Loan Consolidation work for you? Calculate your savings at: https://consolidation.custudentloans.org/calculator or call us directly at: (888) 549-9050