Earlier here at Student Loan Consolidation Info, we talked about the differences between private and federally-backed student loans and consolidations. When you look for the lowest student loan consolidation rate, you are going to be looking for private loans, rather than government-backed options.
One of the leading institutions for private student loan options is Chase Bank. The process of getting a Chase Bank student loan consolidation is not difficult and can greatly reduce both your debt load and simplify your payments. Often, these will also mean a lower monthly payment and the Chase student loan debt consolidation usually improves credit while lowering the interest rate overall.
Some of the things that make Chase student loan consolidation better than others would include the waiver of origination, processing, and repayment fees often associated with consolidation. There is no prepayment penalty if you choose to pay your loan with Chase early, nor is there a penalty for making extra payments. This is definitely worth being on your list of requirements for the lowest student loan consolidation rate.
The application process for Chase Bank student loan consolidation is simple and opens up at around graduation time every semester. Applications are considered on several merits, but Chase student loan consolidation plans are generally easy to qualify for.
These loans are, of course, subject to credit approval. Being one of the largest banks, however, Chase student loan debt consolidation is usually simpler and easier than with smaller, less well-financed institutions.
Nearly every graduate out there faces the same dilemma: you’ve just graduated and you’re looking for or just starting a new job. Looming ahead are student loan repayments you’re going to have to start paying in just a few months. At that point, you’ll probably be looking at student loan consolidation and are facing the prospect of hundreds of dollars a month in loan payments. Not fun, but don’t panic because there are some ways to pay down or even eliminate student loan debt without money!
You can get student loan forgiveness from the federal government by participating in a student loan debt forgiveness program. These usually involve volunteer work, military service, teaching, voluntarily practicing medicine, and more. Often, for instance, recently-graduated doctors will practice their internship in at-risk community hospitals. They get both the experience required for licensing as well as Perkins loan debt forgiveness.
Many other opportunities are also available. Those who join Teach for America, Americorps, the Peace Corps, and Volunteers in Service to America (VISTA) are often given student loan debt forgiveness that removes a large chunk or even eliminate student loan debt.
Military service is another option and many will find that two years in the National Guard can pay off more than half of their loans, resulting in significant student loan forgiveness. You can even have your student loan consolidation include a waiver of payment until your service is complete, which means that during your time in the National Guard, you pay nothing towards your loans.
Teaching full-time in low-income communities through Teach for America and similar programs is another great option that pays 15% of your loans for the first two years and 20% for the next two, with 30% the year after that. So in five years time, your loans are 65% paid, resulting in some great student loan forgiveness. Often, school districts or local/state offices will pay the rest as well.
There are some great opportunities for paying down or eliminating your student loans with student loan debt forgiveness programs.
There are some big differences between the way that private and federally-backed student loans are handled. Student loan consolidation can be done with either private loans or through federally-guaranteed student loan consolidation rules. Often, the difference in the rule requirements are what decide the lowest student loan consolidation rate.
If your current student loans are already federally-backed, you can usually get federal consolidation without needing to have a credit check. There are, additionally, caps on the interest rate (currently 8.25%), no limit to the total amount that can be used in consolidating federal student loans, and the loan is backed by the U.S. government.
This doesn’t mean that it’s not worth looking into consolidating federal student loans with a private loan, though. Consolidating private student loans has fewer rules and handicaps for the lender, thus it often can result in the lowest student loan consolidation rate because the lender can utilize more robust considerations such as your credit rating. So if you have decent credit, you may find that your rate is considerably lower without federal consolidation.
A few things to consider when you look at your loan options are:
Has your credit score risen 50 or more points since you last applied for or qualified for student loans?
Do you have a co-signer on your loans?
Are your current loans at a relatively high interest rate (higher than 6%)?
If your credit score has risen sharply since you last applied, as is often the case when you leave school and enter the work force full time, then you may have a better student loan consolidation opportunity. If you have a co-signer, such as your parents or a family member, on your loans and would like to remove them from responsibility for the loans, that’s a good reason for consolidating private student loans too. Finally, if your current loans are at 6% interest or higher, you may be able to get better rates under student loan consolidation rules with your better score and situation.
Although in general, most people who have just completed college and are beginning to pay off their student loan debt will benefit if they consolidate student loans, not everyone gets better student loan consolidation rates than they had on their original loans.
Most will find that they save money and hassle if they do go ahead with student loan consolidation, but there are those who are in a situation where this is not the case.
If your credit is not so good, if you’ve recently declared bankruptcy, or if other life factors might hurt you when you attempt consolidating student loans, it’s best to talk to your financial adviser closely before making any decisions. If your credit history was better when you were taking out the student loans than it is now, you can expect that you won’t get the lowest student loan consolidation rate and you might lose out.
If most of your loans are Perkins loans at low interest, you may be able to keep those rather than consolidating student loans into one loan. In that case, the low rate you’re paying now might be better than the new rate you’d get when you consolidate.
For most graduates, of course, student loan consolidation rates will not only lower their debt load, but will help cement a better credit score as your many loans and debts are combined into one in a student loan consolidation. This can be a boon if you’re hoping to enter the work force with a solid credit history, maybe purchase a home or a car, etc.
In mid-2009, the Congress passed a stimulus bill that was signed into law by President Obama as one of his first acts as President. This bill included a provision to increase both Perkins loans as well as Pell loans and Pell grants. While we talk about student loan consolidation rates, it’s also important to look at the whole educational package available, including grants.
The increases mean that Pell grants rose to $5,350, which could potentially lower your student loan amount. Perkins loans have increased in amount available and have lowered their interest to 5%, making these some of the lowest student loan consolidation rate packages available.
These are limited in total amount available per student, but can put a big dent in your student loan rates for their part. Lifetime student limits for loans under the Perkins loans are $27,500 for undergraduates and $60,000 for graduates. If you are currently attending school, find out if you qualify for these and lower your interest rates.
Later, when you’ve completed your education, you’ll find that your ability to consolidate student loans will be greatly augmented if your total loan is smaller (thanks to lower interest and Pell grants) and your student loan consolidation rates offers will be much better than they would be otherwise.
Talk to a financial adviser and see what you can qualify for. Some students even get their lowest student loan consolidation rate before they finish graduation! Definitely worth a look.
