Consolidate Those Private Student Loans
Private student loan consolidation means combining your outstanding private education loans into one loan, including private student loans used to cover educational expenses such as tuition, housing and other educational expenses. This is in addition to already consolidated private educational student loans. Consolidating your private student loans will allows you to lower your monthly payment significantly by lengthening the term of your student loans, while receiving a low variable interest rate. This is possible even if your private student loans are held by more than one lender or are of different types.
Eligibility for a private student loan consolidation is typically based on the following criteria:
• Be at least 21 years old at the time of application
• Have a minimum of $7,500 in US issued private student loans
• Are in repayment status of private student loans at the time of application?
• Have good credit standing
• Are a US citizen or permanent resident (eligible non US citizen)
The benefits of a private student loan consolidation can be many fold. For example:
• Simple repayment terms
• Low, variable interest rate
• No penalties for prepayment
• One low convenient monthly payment to one lender rather than various monthly payments to many different lenders
The process of consolidating your private student loans is made simple and fast with most lenders when you qualify.
• Begin an application either online, over the phone, or in person to receive an instant credit decision, interest rate information, and fees.
• Sign and return your completed application. Consolidations are normally complete in approximately 6-8 weeks.
• Continue to make payments to your current lender until you are notified that the consolidation is complete.
• Receive your new repayment information in the mail.
Payment Options
• Repayment begins approximately 30 days from the time your private student loan consolidation is funded.
• The repayment term is a maximum 30 year plan, regardless of private student loan consolidation balance. You may choose one of several repayment options for your private student loan consolidation, and there are usually no penalty for early repayment
Tax Benefits
Consolidating your private student loans will allow you to take advantage of tax benefits offered by the Federal Government.
• By way of the Taxpayer Relief Act of 1997, the Government now permits individuals to deduct the interest paid on loans taken out to attend eligible educational institutions
• Ability to deduct up to $2,500 in student loan interest. Taken as an adjustment to income, allowing the deduction regardless if you itemize deductions on Schedule A of your 1040.
• Deductions phased out for taxpayers with adjusted gross incomes of $50,000 to $65,000 [single filers] and $100,000 to $130,000 [married filing jointly]. Taxpayers who are married but file separate returns are not eligible.
With these simple guides lines to help you through the process, it should be easy for you to decide a private student loan consolidation would be the way to go. Now it is time to do your homework. Use the internet, talk to people that have gone through the same type of financing.
If you are smart about it and do the research, you will obtain the Private Student Loan Consolidation for a lender that will do right by you.