Consolidating private student loans pnc bank

Consolidating private student loans pnc bank

Nevertheless, there are several options for refinancing private education loans. Home Equity Loans Private education loans tend to have interest rates that are in the same ballpark as home equity loans.

Begin making full monthly payments as soon as the loan is disbursed. The low interest rates on federal consolidation loans are not available to private education loans. This option will save you the most in interest.

If your private education loan has a variable interest rate, you might consider using a fixed rate home equity loan to pay off the private education loan, effectively locking in the interest rate. You can also try talking to the current holder of your loans, to see if they'll reduce the interest rate on your loans rather than lose your loans to another lender. When evaluating a private consolidation loan, ask whether the interest rate is fixed or variable, whether there are any fees, and whether there are prepayment penalties. Besides, one can enjoy the benefits guaranteed by variable-rate programs. However, unlike many private lenders offering student loans, it has no rate-reduction incentives in case you apply for the loan.

These are private consolidation programs, so the interest rates are dictated by the lender, not the government. You should not consolidate your federal student loans together with your private education loans.

These are private consolidationYou should not consolidate

So the main benefit of such a consolidation is obtaining a single monthly payment. Also, since the consolidation resets the term of the loan, this may reduce the monthly payment at a cost, of course, of increasing the total interest paid over the lifetime of the loan. For example, if you've graduated and now have a good job and have been building a good credit history, your credit score may have improved. Another important tool that helps students manage the budget correctly is the cost calculator. There may be additional fees charged for originating these loans.

It lets students plan for a much longer time with a preserved interest rate. If your credit score has increased by points or more, you may be able to get a lower interest rate by consolidating your debt with another lender. Education Lenders The following education lenders will consolidate private education loans. Since most private education loans do not compete on price, a private consolidation loan is merely replacing one or more private education loans with another. Use these ratings as a guide, but we encourage you to shop around for the lowest interest rate you can qualify for.