Private student loan consolidation is a new program for your student loan debt. In this program, you could get multiple student loans and replace the old one with the new program instead. Here are your best private student loan consolidation companies to take a look at before you go to apply for some.
Best Private Student Loan Consolidation Companies
Fortunately, there are several loan companies that come with student loan policies. You could check them out to consider the best private student loan consolidation companies for you. Here they are:
1. SoFi
One of the best private student loan consolidation companies which is good for all is SoFi. This company is the first refinance federal and private student loans company since 2012.
Further, in 2021, SoFi made an announcement related to their program that allows you to lock in to the interest rate. You as the federal student loan holder could still be receiving the benefits of a federal payment pause.
- Fees
SoFi required a soft credit check in order to consider to qualify you for a refinance through your rate. After getting the approval, you could choose the loan term that suits your needs. Consider the long term whether it is 5, 7, 10, 15, or maximal 20 years. With the length of the term you have chosen, there is no prepayment penalty.
Additionally, you do not need to pay the application or origination fee. This policy holds a special offer that could be transferred to your child later. The loan amount is around $5,000 up to the total of your outstanding loan balance.
- Requirements
The most necessary requirement to qualify for a student refinance is a minimum credit score must be at least 650. On the other hand, the approved typical credit score is around more than 750.
Additionally, the requirement is most likely offered for the U.S. citizen and available in all 50 states. However, if you are a non-permanent resident, you have to show certain documents. Those files such as your current immigration status and Green Card or an Application to Register Permanent Residence.
You could qualify for a student refinance if you have already graduated and must be employed. Your income must be sufficient to pay your refinance even if you just start your job at least the next 90 days.
2. Laurel Roads
Laurel Roads is one of the best private student loan consolidation companies that is most likely to be recommended for medical students. This company runs an online system to offer refinance for doctors and low rates for healthcare professionals. Additionally, this company provides a plan for a medical residency program.
- Fees
Laurel Roads offers a plan for only $100 per month for those who want to join the medical residency program. Regardless, this company offers loan amounts starting from $5,000. There is no maximum amount yet especially for associate’s degree graduates you are able to refinance up to $50,000.
- Requirements
That amount of the program fees occurs in the loan term that is available for 5 up to 20 years. In addition, there are up to 12 months of forbearance which probably rise in three months.
Most likely to be required for associate’s degree graduates who work in the healthcare field. This company also does not disclose any credit score or monthly income.
3. Citizens Bank
If you need a lender that does not instruct you to have graduated to qualify for a refinance, Citizens Bank is the answer. This one of the best private student loan consolidation companies offers a co-signer form after 36 loan payments history.
- Fees
Basically, Citizens Bank requires a loan amount starting from $10,000 up to $300,000 for anyone who has at least a bachelor’s degree. On the other hand, if you have a graduate degree, you could cost $500,000 for a student refinance.
Although this lender has a higher rate than the others, you could get a fee reduction of up to 0.50%. In addition, if you come without any degree, you must be able to make 12 on-time payments. In order to get qualified to receive and do payment, your income is at least $24,000.
- Requirements
The necessary requirement to get your fee reductions is to sign up for the bank account. However, the checking and savings account system is only available in several states.
The state’s list includes Connecticut, Delaware, Massachusetts, Michigan, New Hampshire, New Jersey, and New York. Additionally, Ohio, Pennsylvania, Rhode Island, and Vermont are also included in the list. Yet, the refinance system is available almost nationwide.
Within the loan period, you probably would be experiencing financial hardship for 12 months. The financial hardship system takes a play in your loan modification program.
4. Earnest
Furthermore, the next list from best private student loan consolidation companies is Earnest which has such a unique system. This company has a policy for all borrowers to customize their monthly payment system. Customizing the cost could fit your budget into the payment and repayment system.
- Fees
You could get a cost of around $5,000 as the minimum average cost and up to $500,000. In addition, if you are living as a resident of California, you have to make a request to refinance around $10,000.
There is no application fee or origination and prepayment penalty. However, you probably would pay late payment fees later.
- Requirements
Earnest’s student refinance requires a minimum credit score of at least 680, the higher the credit score, the better. In some cases, you need to submit your credit to the normal credit qualification for the co-signer.
In addition, you must be a U.S. citizen since this program is available in almost all states. Yet, Kentucky and Nevada are excluded from the list. Regardless, you must be living permanently as a permanent resident. If you are a DACA resident, you need to complete your residency requirements.
Should You Take for Private Student Loan Consolidation?
Students probably have loans and find it hard to manage all the expenses while having more than 2 loan policies. In this case, it is a good idea for you to take a student loan consolidation to assist you in managing your interest rate.
However, before applying for some consolidation, pick your best private student loan consolidation companies first. You could analyze how much you can afford and the average amount that suits your budget. Based on this reason, some lenders could put higher rates of interest that might trap you in getting more expenses.
