As most people realize, Student Loans have been a burden on those graduating from a College or University as the costs of education continues to rise. Current student loan balances have increased to above 1.5 Trillion dollars; being the highest consumer debt aside from mortgages. Many have suffered in silence trying to determine how to best pay off their debt.
Now Degrees of Success has teamed up with a private lender to provide a lower interest rate to our clients through Private Consolidation. This rate could be as low as 2.79% (based on credit factors).
There are 3 different types of consolidations available for borrowers for their student loans.
- Private Student Loan Consolidation of Private loans
- Private Student Loan Consolidation of Federal loans
- Federal Student Loan Consolidation of Federal loans
Private consolidation is not for everyone but it can be beneficial for borrowers looking to reduce their interest rates and in turn, decrease their monthly payments. However, those who expect to qualify for public service loan forgiveness would not want to consolidate their federal loans. You also would not want to consolidate your federal loans if you have a very low income and are utilizing an income driven repayment plan. If your income is higher and you no longer qualify for the lower payment options, private consolidation could be a great option for both federal and private loans.
With borrowers leaving school with interest rates of 6.8% on Stafford Loans and 7.9% on Plus loans, it only makes sense to consider a private consolidation to save the extra money. Here is an example of the difference:
Take a $100,000 federal consolidation loan at 6.8% with a standard 30 year term and compare it to a $100,000 private consolidation at 2.79% at the max 20 year term. The federal consolidation loan will cost $134,693 in interest while the private consolidation will cost $30,594 in interest. This is a savings of $104,099.
Its time to seriously start looking at your debt and determining what options make the most sense for your needs. If you or someone you know has a high interest rate student loan, consider private consolidation by contacting us to determine if this is the right option for you. Schedule a free consultation Here
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