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.

If you are looking for a way to pay for college, you have found it. Alternative or private student loans are funded by a private financial institution and are not subject to federal guidelines. Therefore, you may use the money you borrow to cover the cost of tuition as well as a wide range of education related expenses. Therefore, you will know you are covered for all those things that add up fast over the course of a semester. Such as books, lab fees, room and board, and travel home. With a Private Student Loan you can:

• Apply for the amount you need, $1,500 minimum a year
• Get up to $40,000 per academic year
• Apply online or over the phone in as few as 15 minutes
• Get preliminary approval in as little as 15 minutes and your funds in about a week
• Make payments now or defer up to 5 years
• Can often get up to 0.5% interest rate reduction with automated payments

Borrowing smart means borrowing only what you need and using the money only for what it is intended. In addition, since Private Student Loans are for the express purpose of helping you get the most out of your college education, they can only be used for education-related expenses. You ask what that includes.

What follows is a partial “general” list of the things your private student loan can and cannot be used for. Use it as a guideline. (lenders vary, as do individual student circumstances)

Yes, You Can:
1. Tuition
2. Room & Board
3. Lab Fees
4. Computer & Accessories
5. Travel home
6. Studying abroad

No, You Cannot:
1. Car payments
2. Laundry/Dry Cleaning
3. Doctor’s visits
4. Spring break
5. Extra dorm furniture
6. Athletic tickets

Many of today’s college students employ a “mix” of financing solutions to cover the increasing costs of higher education. Every student should start by applying for a federal loan. However, when they find this is just not going to cover the expenses necessary they should look into a private student loan. A Private Student Loan can supplement federal funding to help bridge the financial gap.

You can learn more about using your Private Student Loan for education-related expenses, including:

• Tuition
• Room and board, laptop, fees, meal plans, books, travel home
• Study abroad

A private student loan is available for Undergraduate, Graduate/Professional, and Continuing Education programs. A Private Student Loan can help you avoid high-interest credit card debt. It can also help you avoid drawbacks that may come with other types of loans, such as difficulty in qualifying for need-based loans and tuition only restrictions.

Graduate repayment is automatically deferred. A continuing education borrower begins repayment the earlier of a) 180 days after the student graduates or earns a certificate; b) 180 days after the student ceases to be enrolled; or c) two years after the date of the loan disbursement.

A 0.25% interest rate reduction is available with many different lenders for borrowers who elect to have monthly principal and interest payments transferred electronically from a savings or checking account. Upon request, loan borrowers are also entitled to an additional 0.25% interest rate reduction if the first 36 payments of principal and interest are paid on time and the borrower signs up for automated payments.

Private student loans, also known as alternative student loans, are great solutions to help you pay for college or graduate school. These private college student loans make dreams come true for many students and are available through banks, credit unions, online lenders and other financial institutions.

Private student loans are not one-size-fits-all financial solutions. In fact, there are hundreds, maybe thousands, of these loans available in the U.S. Moreover, because these student loans are more flexible than other student loans and tend to have higher limits, you should be able to find one that works for you.

Good credit will help you considerably when applying for a private or alternative student loan. In fact, you must have reasonably good credit to qualify for one as a single borrower in the first place. If your credit is not great, or if you have not yet built it, a cosigner with good credit can help you. When someone cosigns a student loan for you, basically they extend their good credit to you. This is because when they cosign a student loan they agree to pay for it in the event you do not. Private lenders consider this an added security measure that the student loan will not go unpaid or into default.

Cosigner benefits go beyond just loan acquisition. Cosigners can also help you get a better deal on your student loan. Because private college student loans are credit-based, a cosigner with excellent credit can help you get better interest rates and loan terms. Therefore, if a trusted adult with good credit, such as a parent, is willing to cosign a student loan for you, you would be wise to accept the offer. But remember what you do with your loan will affect your cosigner’s credit. So be smart and responsible when paying it back.

As you begin to look for alternative student loans, you should understand how each lender calculates interest. This will help you properly compare rate and fee offers. Some lenders will base their rates on the current LIBOR rate. This is ‘The London Interbank Offered Rate’ and it is the interest rate international banks charge each other to borrow U.S. dollars. The second rate you should know about is Prime. Prime is an interest rate that lenders give to their best customers, and it is usually the same rate at most large banks. In either case, you can expect to pay at least a couple percentage point above the going rate for an alternative student loan.

When you start comparing the different private student loan products available, you should ask lenders a number of questions to help you evaluate their different student loan products. The following should help you get started:

• What are the loan’s limits? Can I take out more than my Cost of Attendance (an estimate of how much one-year at the school will cost including tuition, room and board, living expenses, books and supplies, and transportation)? Will other aid sources I received be subtracted from the loan amount I am eligible for?
• What are the loan’s terms? Will I have at least 10 years to repay the loan?
• Can I defer the loan while I am in school? What are the terms of deferment?
• How will interest be calculated?
• What interest rates are offered with my credit rating? Are interest rates fixed for the life of the loan, or will they change as banking interest rates in general go up and down?
• Will a cosigner help drive my rates down?
• What type’s fees will I be responsible for?
• What will my monthly payments be? For how long?
• Do you offer a graduated payment system where I can pay more on my loan as I begin to earn more?
• How much interest will I pay over the life of the loan?

Once an alternative student loan check is in your hands, be sure you are wise with your money. A loan check is not free money. In fact, you will be paying off your student loans for many years when you graduate. So be sure to set yourself up for financial success by only spending what you need and spending it wisely. When used appropriately these private student loans can make higher education possible for anyone.

If a student or his or her parents do not qualify for federally funded loans, or if they simply require more money to meet the financial requirements of post-secondary education, there are many other options.

Private student loans, which come from private institutions such as banks and credit unions, are not guaranteed by the government. Their rate of interest, along with their terms and conditions, are set by the lender. In some cases lenders will not require any payments while the student is in school and may even offer flexible repayment options after graduation. However, private student loans’ specifics vary widely, so students should shop around.

Students and parents can also investigate other borrowing sources to cover the cost of education. One option is a home equity loan. The interest on these loans is also usually tax deductible.

Whether this is your first year at college or your last, you are bound to have unexpected expenses that you did not factor into your educational costs. Whether it is tutors, computers or software, books, last minute tuition hikes, or transportation needs – there are many flexible options to help supplement your student financial package as to help cover those expenses not met by your existing student financial package.

Generally a fast and easy application process, generous and flexible repayment terms, and competitive interest rates, most lenders goals are to help you achieve your education goals.

One applying for a Private Student Loan must provide a credit worthy application demonstrating a current ability to repay a loan. To determine if you are eligible to be approved as a credit worthy applicant ask yourself if you meet all of the criteria listed below:

• You must have an employment history of at least two years (if self-employed, have been in business for at least two years),
• You must have proof of current income (and you must maintain employment with same employer or in the same field while you are attending school)
• You must have a satisfactory credit history of at least 21 months,
• You must have resided at your current and immediately preceding addresses for a total of at least 12 months, and
• You must be a U.S. citizen or permanent resident and have resided in the U.S. for the previous two years.

If you are not able to check off all the above boxes, you should apply with a qualified co-signer who meets the established requirements. International students can apply, but must have a qualified credit worthy U.S. citizen or permanent resident co-signer .

Even if you meet the above established credit guidelines, it may be in your best interest to apply with a qualified co-signer.

Benefits of applying with a credit worthy co-signer may include:

• Increased chance of approval
• Lower origination fees
• Lower interest rates
• Smaller monthly payments
• Less interest paid over the term of the loan

Private Student Loan Borrowing Limits:
• Borrow annually up to the lesser of $40,000 or the estimated annual cost of attendance
• $130,000 aggregate maximum borrowing limit
• $1,500 minimum loan amount
• Undergraduate and graduate borrowers may borrow annually up to the lesser of the cost of attendance or $30,000 ($40,000 for certain schools where TERI has determined that the annual cost of attendance exceeds $30,000). Borrowers in Continuing Education and K-12 loan programs may borrow annually up to $30,000.

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