3 Tips For Great Private Student Loan Consolidation Rates

Private student loan consolidation is designed to help you save money on your monthly payments. Since these consolidations are handled through private lenders, the interest rates can vary based on several factors. Of course you want the lowest rate possible, so there are a few things you can do beforehand to ensure this.

Get the Best Private Student Loan Consolidation Rates

Check Your Credit
Your credit will be a factor in private student loan consolidation. Before you get surprised with a high rate, pull a copy of your credit report. It’s not uncommon to find small errors that can be easily corrected by contacting the credit bureaus. Small debts should also be paid before you consolidate. Even if they are paid late, it looks better than going unpaid.

Income Verification
One of the big factors in determining a rate for consolidation is going to be your ability to repay the loan. The less of a risk you are, the lower the rate will be. You can help this process by gathering all of your income information while you are shopping. Make sure you have current bank statements, paycheck stubs, and any other documentation that shows steady income.

Shop Around
You can shop for a loan just as you can shop for anything else. Until you sign the paperwork you are not under any obligation with the financer. If you spend a little time researching you can save quite a bit of money. You want to look at more than just rates though. Compare the repayment terms available, structured payment plans, as well as the reputation of the lending institution. You may want to start with any banks you already have a relationship with since they are more likely to offer you great rates to keep your business. If you have a quote for a lower private student loan consolidation rate, don’t be afraid to let them know.

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