Top Student Loan Consolidation Companies

Top Student Loan Consolidation Companies

When you consolidate student loans, you can lower your monthly student loan payment by as much as 60 percent. The key is to find the right lender and the right interest rate.

When comparing lenders, you should consider payment fees, interest rates, and loan terms. If you are looking for reputable student loan consolidators online, there are three companies that I highly recommend. These companies can offer you the best rates and save you money by consolidating your student loans.

1. Loan Approval Direct

With a student loan consolidation loan, this company can reduce your monthly student loan payments by as much as 60 percent. Loans as high as $125,000 can be approved and there is no collateral required. Loan Approval Direct also offers interest rates as low as 3 percent.

2. Next Student

If you have not consolidated your loans previously, Next Student offers student loan consolidation services. If you are out of school or if you will be graduating in six months or less, contact this company to find out how you can reduce your monthly student loan payments by as much as 60 percent.

3. DebtConsolidation.com

This online debt consolidator is the parent company of StudentLoanConcolidation.com and can save you a great deal of money on your monthly student loan payments. Their online application is easy to fill out and they can let you know almost immediately if you are eligible for student loan consolidation.

 Resource:     businessmajors.about.com

Current Student Loan Consolidation Rates

 Current Student Loan Consolidation Rates
Despite what many people think, student loan consolidation rates are not that different than what a graduate is already paying. In fact, the new rate on a student loan consolidation is simply the weighted-average of someone's current loan rates, rounded up to the nearest one-eighth of a percent (.125%).

For example, if three-quarters of your loan is at 8%, and one-quarter is at 6%, the new rate would be calculated as the follows:

8% x .75 = 6.00%
plus
6% x .25 = 1.50%

Total New Rate = 7.50%

Essentially, this is the same overall rate the borrower was paying prior to consolidation across all their loans, but it's now been combined into one loan.

The only major potential drop in rates comes when the borrower has government PLUS loans. Since many of these loans have rates that exceed the maximum student loan consolidation rate of 8.25%, this portion of the weighted-average is capped at 8.25%. Thus, if you have multiple PLUS loans at 8.50%, these could be consolidated into a new loan with a maximum rate of 8.25%.

Keep in mind that Federal student loan consolidation rates only apply to Federal loans such as Stafford, Perkins, and PLUS loans. Private student loans may also be consolidated, but not under the Federal consolidation program. Be sure to talk to your private lender to explore the available consolidation options.
sources: collegesavings.about.com

Differences Between Private Student Loans and Federal

What are Differences Between Private Student Loans and Federal?

Some general features are given here about private and federal student loans.
    Federal Student Loans is provision by the government
    Low fixed interest rates are available in Federal student loans.
    It provides flexible repayment and long period options that included income-based   repayment
    Federal student loans may include federally-subsidized interest and it is depends on the student's need
    It requires completion of the FAFSA (Free Application for Federal Student Aid)
    School certification is required in Federal Student Loans
    It may offer borrower some benefits like interest rate discounts
    PLUS (Parent Loans for Undergraduate Students) loans require that the borrower have no adverse credit
    Stafford loans are not credit based

       But:

           When federal student loans, grants, scholarships etc. aren't enough to fulfill your entire education, private student loans can help you. 

Have interest rates and fees that are determined by the lender and often depend on your credit rating

Private Student Loans usually have variable interest rates

It is not necessary or required to be a consigner to apply but a qualified cosigner may help to get approved for a private student loan for a student and it is also possible to get a better interest rate

It may or may not have deferment and forbearance options

It may offer borrower in benefits like interest rate discounts
It also required school certification to get a private loan.
There is also needed the completion of a self-certification form

Online Student Loans Application

Online Apply for the Student loans
This is a modern age that is called "Global village". It is impossible to find out the correct and suite information about the student loans. Students are getting more advantages by applying the online facility of student loans. It is saving our time and efforts. We can say that to get a student load is like a hot cake that every one can eat. One is needed to provide some information to the company and you are sure to get student loan. It is the best way to meet one’s needs of school and college.
There are a number of websites which give you the facility of filling in the online form for applying for student loans. Most of them are very recognized and give you a whole guidance to take student loans and have a good deal with you.
You can search these type of websites via Google and have a look to apply for the student loans for your best college life.