Student Loan Consolidation Companies


Do you have multiple loans either private or federal student loans and you want to consolidate them into a single monthly payment? For a complete list of student loan consolidation companies and their reviews read to the bottom of this article.

The lowest consolidation rates available are typically at these credit unions – checking rates is free

There are a few things you need to make sure you understand about the student loan market before you begin the process of consolidating.

The 6 Best Private Student Loan Consolidation Companies – Bottom of Article

Benefit of Consolidating Student Loans

There are 3 possible benefits to consolidating student loans.

  • Lower Your Monthly Payments
    • I could have lowered my payments by over $100/month
    • Check your potential non-profit Credit Union consolidation monthly payments here
  • Take advantage of low interest rates
  • Convenience of 1 montly payment

The main downside is extending the term of the loan and increasing the total amount you will pay in interest.

For example if you owe a total 50,000 in Student Loans at 5% interest and a 10 year term with 5

different lenders(10k/each) then consolidate to one lender and a 25 year term your monthly payments would go from $530/month to $292/month but the Total Interst Payable will go from $13,639 tp $37,688.51.

  • Owe – $50,000
  • 5 different lenders
  • Interest Rate – 5%
  • Term – 10 years
  • TOTAL Monthly Payment – $530.33
  • TOTAL Interest Payable – $13,639.31

Consolidate 5 loans to decrease monthly payment by extending length of loan

  • Owe – $50,000
  • 1 Consolidate lender
  • Interest Rate – 5%
  • Term – 25 years
  • TOTAL Monthly Payment – $292.3
  • TOTAL Interest Payable – $37,688.51
StudentLoanConsolidation 10years1 Student Loan Consolidation Companies

Student Loan Payments Over 10 Year Term

StudentLoanConsolidation 25years Student Loan Consolidation Companies

Student Loan Payments After Consolidation For 25 Year Term

Do you want to consolidate Federal or Private Student Loans?

Federal Student Loans are issued by the federal government through their Student Aid website. These loans are typically the most advantages and make up a large amount of the student loans people carry.

Private student loans typically have more aggressive re-payment plans and less advantageous interest rates however can be much easier to consolidate.

How To Consolidate Federal Student Loans

If you hold federal student loans with the government you have 3 options.

Option 1 – Special Direct Consolidation Loans (limited time)

Special direct consolidation loans or (Obama student loan) are a temporary opportunity for borrowers who meet a set of criteria to roll their loans into one Loan held by the government.

Borrowers that are eligible must…

  • Have one or more student loans held by a commercial lender in the Federal Family Education Loan.
  • Have one or more student loan held by the Federal Government

The benefits of the Special Direct Consolidation Loans include reducing interest rate and not having to significantly change your repayment terms if you do not want to.

The difference with the Special Direct Consolidation Loan from a traditional loan is that each loan consolidated retains its original repayment term allowing you to save money in interest over the life of the loan.

A second key difference with the Special Direct Consolidation Loan is that it allows other Student Loan Companies loans to be consolidated with this Federal program

Option 2 – Direct Consolidation Loans

A direct consolidation loan is a way to consolidate multiple federal student loans into one.  When you consolidate federal student loans you will reduce your monthly payments by extending the length of the loan and potentially reducing the interest rate.

The benefit of a direct consolidation loan is that you can significantly reduce your monthly payments however you should also determine what the added interest cost over the life of the loan will be.

Option 3 – Consolidate Federal Student Loan into a Private Consolidation Loan

If you hold a student loan from the Federal Government and want to consolidate it you may be able to find student loan companies that offer better interest rate than you can find from the Government.

The downside to consolidating a Federal loan into a private loan can be the aggressive interest rate increases from some companies. Some student loan consolidation companies will offer a teaser interest rate to attract student to consolidate their federal loan with them but then gradually increase the rate.

This option is not recommended! Make sure the  benefits of consolidating a federal student loan into a private loan outweigh the costs.

Option 4 – Peer 2 Peer Lending to Consolidate Student Loans

This is a relatively new option but with the growth of peer to peer lending sites there is the opportunity for students who dont qualify for traditional consolidation loans to get one through one of these sites. Lending Club and Prosper.com are the 2 most common ones.

 

How To Consolidate Private Student Loans

When you get a private student loan it falls under some of the same rules as a federal student loan, specifically if you declare bankruptcy your student loan debt will not go away.

When you consolidate a private student loan you achieve the most significant benefit of being able to combine multiple monthly payments into one payment to one loan modification company.

It can be a good idea to consolidate private student loans if your Credit Score has improved.

There are websites where you can check your credit score for free – Free Credit Score Check

Consolidate your student loan and mortgage – One option if you are a few years out of College and you own a home which has appreciated in value is to take out a Home Equity Line of credit and pay off your student debt. This is essentially consolidating your Student Loan with your Mortgage. The benefit is the ability to have the lower payments

6 Best Private Student Loan Consolidation Companies

1.      cu Student Loans Consolidation

CU Student Loan Consolidation Company Student Loan Consolidation Companies

The EdSucceed Private Student Loan Consolidation offered by cu includes many of the benefits the other companies offer. These benefits include a 15 year repayment program, 12 consecutive on time co-signer release and a 4 year interest only option.

Some of the requirements include a monthly salary of $2,000 and verifiable income for the co-signer.

The last 2 companies offer very similar loan consolidations.

cu Private Student Loan Consolidation

2.      Student Loan Network Consolidation Review

Student Loan Network Student Loan Consolidation Companies

The student loan network offers to get you in touch with lenders who can help consolidate your student loan.

Because they are essentially a middle man they can help when you are stuck getting a consolidation loan from some of the larger private student loan consolidation companies.

Student Loan Network Consolidation

 

3.      Wells Fargo Student Loan Consolidation

wells fargo logo Student Loan Consolidation CompaniesWells fargo offers private student loan consolidation. You have the option to have both fixed or variable rates on your consolidated loan. The application process can take from 45-60 days.

Wells Fargo has two options to lower your interest rate. You can lower your interest rate by 0.25% by setting up automatic payments.

The second way to lower your interest rate is if you are a Wells Fargo customer you can lower your interest rate by 0.5%

Wells Fargo Student Loan Consolidation

 

3.      Chase Student Loan Consolidation

Chase Student Loan Student Loan Consolidation Companies

Chase has offered consolidation loans in the past. They have the highest satisfaction rating for customer service but do not offer the best interest rates.

Chase would be a great option to consolidate your student loans if you already have any business with them.

Chase Student Loan Consolidation

 

4.      Next Student Loan Consolidation

Next Student Loan Consolidation Company Student Loan Consolidation Companies

If you are looking to consolidate your student loans quickly than Next Student Loan Consolidation may be the right option for you. They pride themselves on their speed at which they can consolidate a student loan.

Like payday cash advances, they are financial tools that are often mis-used. Unless you absoloutly need to consolidate your loans quickly I would recommend you use caution with a Next Student Loan Consolidation.

Next Student Loan Consolidation Review

 

5.      Cedar Education Lending Consolidation

Cedar Education Lending Consolidation Loan Student Loan Consolidation Companies

Cedar Education Lending offers Private Student Loan Consolidation ranging from $7,500 to $125,000 with a 15 year term and interest rates as low as 4.75%.

One unique offering from this consolidation company is the “interest only option” for four years. If you are struggling to make your monthly payments and extending the repayment term to 15 years is not enough to make the payments affordable than the interest only payment option may be worth investigating.

Another unique aspect to a Cedar Education Consolidation is the co-signer release if you make 12 consecutive payments.

Cedar Education Lending Consolidation Review

Comments

  1. I’ve used Cedar Education Lending for a Private Student Loan Consolidation in the past and they worked out good. I would recommend them. It was pretty simple.

  2. I was wondering if you knew all the companies offering private student loan consolidation. I have $55,000 in Sallie Mae Private Student loans so I’m paying over $600 a month to them and I only make $1000 per month at the moment in a 40 hour per week job (Currently looking for jobs in my degree field). I tried CUstudentloan one and they contacted me saying my credit score wasn’t good enough (they said 690) or just my income wasn’t high enough (want $2,000 like your page says). I thought about trying Wells Fargo but I’m not sure they will be any better than what I am dealing with at Sallie Mae right now. Chase seems to have discontinued theirs, that Cedar one is now linking to CUstudentloan so I guess they merged. NextStudent seems gone as well. It seems like there are only 2 options at the moment and one of them I’ve already been denied. Do you know anymore?

  3. I have loans totaling just over $89,000 with Salliemae and Nelnet. I am trying to consolidate my loans into one monthly payment as I have been underemployed and never used my graduate degree in our recession (4 yrs old currently). Is there a company that you would suggest that has good interest rates that are fixed?

    • Bonnie
      Consolidating in your situation may be a great idea. There are several companies that would be worth investigating, specifically CU Student Loans offers a comparison of all student loans offered by Credit Unions. Best of luck!
      Jon

  4. I have two 35k alpln loans with AES…I’m able to consolidate but not through them because they don’t offer consolidation. A few companies I’ve called won’t consolidate either because they’re alpln loans. Can any of these companies listed above help?! these $600 a month payments are killing me.

    • I have never worked for any of these companies so I cant confirm but who your loan is with should’t stop you from being able to get a loan consolidation. They would likely be worth a shot!

  5. I just recently applied to Wells Fargo for a consolidation loan and was told I needed a co-signer although I did not need one to get the 55k in student loan debt. Its crazy to me how I make more money now, have better credit now and less debt then ever and I still got this response. But from my research so far, Wells Fargo is the only company offering fixed rate. Do you know if any other are that maybe I overlooked?

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