Student Loan Consolidation Hot Topics

Private student loan bankruptcy protection denied

In the Higher Education Act Reauthorization (HR 4137) currently moving through Congress, an amendment by Representative Davis of Illinois would have extended some bankruptcy protection to students holding private student loans. Unfortunately for students, the amendment was voted down after strong opposition from banks and financial institutions.

The argument against the bankruptcy protection amendment was that its inclusion would ultimately make private student loans more expensive as lenders would need to increase rates and fees to cover loans that were in default and discharged in bankruptcy.

The Financial Aid Podcast has also done an analysis piece on this legislation.

The short version? For now, private student loan consolidation remains the best avenue for making private student loans more affordable.

A common misconception with student loan consolidation is that lenders charge some sort of fee if you consolidate your loans with their company. There are NO fees to apply or receive a Federal Consolidation Loan. This is because federal regulations do not permit lenders to charge borrowers a fee. It costs you nothing to set this up AND there is no credit check. Students with bad credit or no credit can apply. You do not have to give any guarantee of income.

Applying for student loan consolidation is a fairly straightforward process. The borrower is required to fill out an application form. The eligibility specifications are the following:

Borrower must have over $10,000 is federal student loans.
The borrower must be out of school or under half time.
Loans must not be already consolidated.
You can not be in a default status on your student loans.

Once an application has been accepted, a statement containing all the important information such as payment plan, payment schedules, etc. is sent. To learn more or apply, contact a Student Loan Network Counselor toll-free at 877-328-1565 or apply online.

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans

Student Loan Network

With tuition rising, many students and families need to take out private student loans in addition to federal student loans. Once the student graduates they are usually in shock when they find out how much their monthly payment is. The private loan that was once a friend and allowed them to attend college now becomes their enemy because they feel they will be in debt for years.

To help ease the burden of repayment on private student loans the Student Loan Network now offers a private loan consolidation program. It will reset the term of the loan and help reduce the monthly payment. Also, you will receive one bill each month once the loan is consolidated. This is a huge benefit for students who are being billed by multiple lenders.
If you’ve got questions about interest rates, incentive programs, or the general process of student loan refinancing, contact Student Loan Network by phone at 866-532-7661 or click here.

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans

By now, many of you should have already consolidated your federal student loans (if not, get in touch with us right away 877.328.565). Some of you still have thousands of dollars in outstanding private student loan debt, and are looking to consolidate that as well. First, before you ask - private and federal student loans should NOT be consolidated together. Federal loans, once consolidated have a low fixed interest rate. Private loan consolidation is variable, based on the adjusted monthly prime rate, plus a margin for credit history. So keep the two separate - but if you haven’t already, consolidate your federal loans first. One of the benefits of federal consolidation is that it helps your credit score by reducing the number of outstanding loans you have. A better credit score could help the interest rate on your private student loan consolidation.

By consolidating your private student loans, you will improve your credit score, eliminate complicated finances by making one payment, and combine all student related debt including high interest rate credit cards.

To learn more about private student loan consolidation call our help desk at 866.532.7661 or visit our private consolidation info page.

And…if you are reading this now and still haven’t consolidated your federal student loans, give our federal consolidation department a call at 877.328.1565 or check out studentloanconsolidator.com.

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