How to Consolidate Private Student Loans?

How to Consolidate Private Student Loans?
By Bruce Victor Platinum Quality Author


The private student loans or the alternative student loans are those loans which students avail of over and above the financial aid that they get. These loans are used to pay off living expenses or even the expenses for the books or computers.

Since these loans are not sponsored by the government and are given by the banks the rates are generally very much higher than the normal rates. Apart form the fact that students have low credit score and hence the loan rates are higher.

If you have two or more of these loans then it is better to consolidate the private student loans. The best option is to talk to your bank and suggest them that since you are unable to service each loan separately it is better to consolidate the private student loans into one single EMI on a monthly basis.

Also always never consolidate the federal loans and the private loans. The federal loan rates are much lower and hence it is better to consolidate them separately. Talk to the banks for consolidation and if they do not agree then there are specialized loan consolidation agencies that can do the consolidation.

Always go for a longer tenure to lower your monthly EMI. Also get a co-signer or collateral so that the EMI gets lowered. Consolidation will help you manage the finances better and it will also help to make sure that you have enough money in the bank for any exigencies. Make sure that you approach the banks that originally lent you the loan first.