Private College Consolidation Loan

The cost of an education at a private university is growing exponentially, causing more students and parents to consider refinancing their student loans through a private college consolidation loan. The New York Times recently reported that the total costs of attending a four-year private university, including tuition and the general cost of living, has grown to an average of over $30,000 a year. The private college consolidation loan has helped millions of families as college bills exploded and rose by 81 percent between 1993 and 2004.

Do you want a private college consolidation loan?
Apply for a private college consolidation loan today.

Students and families having difficulties with their monthly payments find federal private college consolidation loans advantageous for many reasons.

The benefits of a private college consolidation loan:

• Reduced monthly payments
• No minimum loan amount required
• Flexible repayment options available
• The simplicity of dealing with one lender and one monthly payment
• Deferment options
• Subsidy benefits are retained

The cost is still rising and the price tag on private education is becoming a crippling burden for many families to bear. Some are finding themselves forced to take out a number of federal and privately offered loans. Six months after graduation, when the grace period offered by most lending companies comes to an end; students are hit and overwhelmed with the number and amount of monthly payments. Many do not realize how they could lower their monthly bills and simplify their lives by applying for a Direct Consolidation Loan.

Various forms of private college consolidation loans exist. They are available to parents, undergraduates and even to graduate and doctoral students. The monthly repayment programs are those used by all government loans: Standard, Graduated, Extended (available to borrower’s with more than $30,000 in college debts) and Income-contingent.

If a borrower cannot pay a bill, he or she still has the opportunity, with the private college consolidation loan, to make a deferment on payment. Acceptable reasons to apply for deferment include: economic hardship, unemployment, military Service, and/or reenrollment in school (including part-time). If a student graduates and goes on to work in certain public service fields such as teaching, he or she may qualify for loan forgiveness. Students with governmentally subsidized loans can hold onto the included benefits, even after consolidation.

The major difference between a Direct Consolidation Loan and a multitude of individual loans is that the borrower only has to deal with one monthly bill. The total amount of the payment may even be less than the sum of all of the smaller loans. The interest rate is calculated by taking the weighted average of each of the interest rates on each individual loan. This interest rate is paid monthly for the duration of the loan repayment period. Most individual loans do not offer a fixed interest rate, so the borrower finds himself or herself at the mercy of the financial market.

With consolidated loans, there are also no minimum amounts that the borrower must have to consolidate; therefore, the student is free to consolidate at any point in the repayment process. However, to take advantage of current low interest rates, students need to act now. Applications must be postmarked or sent electronically by midnight on June 30 of the current academic year.

With the cost of attending a university, especially a private one, on the rise, it is not altogether uncommon for families to look into various forms of financial aid, including federal and privately owned loans. However, many families remain unaware of the options available to them after the their student graduates.

Do you want a private college consolidation loan?
Apply for a private college consolidation loan today.