How to Consolidate Student Loans at a Low Interest Rate

Directions :

  1. Wait until the loans you would like to consolidate are no longer within an "in-school" status. The status changes once you drop below half-time registration.
  2. Consolidate loans about halfway from your six-month grace period if you have financial loans with a variable interest rate. The us government lowers your interest rate in case you consolidate these during the grace time period. However , you have to start creating payments right after the consolidation is prepared, so you should wait until close to the end of the grace period so you don't have to start making repayments much sooner than you ordinarily might have.
  3. Submit an application for a federal , direct student loan consolidation through the Department of Education's Direct , loan consolidation website. You will need your own personal identification information, including your Ssn, the names and telephone numbers of two personal references and basic financial loan information for all of the federal loans you would like to consolidate. To get the what you need on your loans, take a look at your most recent statement or search for your loans in the National Education loan Data System (see Resources). You usually need to know the lending company's name as well as address, your account number and the rough amount you owe.
  4. Continue creating regular payments as scheduled on your loans unless you receive confirmation that your consolidation loan went through. At this point, your own old loans will all be paid off and you may receive instructions on how to create payments on your new , loan consolidation.

Private Student education loans :

  1. Obtain your credit track record and look it over for just about any errors, which you can dispute by using the instructions on your credit history.
  2. Pay your bills promptly, pay down any personal credit card debt and do not apply for any kind of new credit in the months prior to your direct student loan consolidation. These types of actions will improve your credit score, that plays a large role in determining the eye rate you get on your , loan consolidation. The higher your credit rating, the lower your rate of interest.
  3. Ask a parent or guardian, other relative or trusted friend along with good credit to co-sign on the education loan consolidation with you. If you possibly could find someone with excellent credit that is willing to take the likelihood of co-signing, this can further reduce your interest rate. However , the , loan consolidation and all of the payment history will be on the co-signer's credit report and also the co-signer is liable for the payments in case you stop paying the financial loan.
  4. Call or visit the sites of popular lenders for private student education loans, including Sallie Mae, Run after, Wells Fargo, NextStudent or Education loan Network, to determine which organization offers lowest interest rates, origination fees along with other loan terms.
  5. Complete a direct student loan consolidation application. For those who have a co-signer, he must complete part of the application too. In general, you will have to know the name of every lending company at which there is a private student loan, your accounts numbers and the balances on your financial loans. Contact your current lenders to get these details.