Debt Consolidation for Private Student
Loans
If you have gotten all of your student loans through the
government than you have a plethora of debt consolidation
options to choose from. They have ones that you can set how much
you pay and for how long you pay it, or they have ones that are
Income Contingent where you pay a portion of what you owe. There
are also a ton of options if you have gotten yourself in over
your head where they can defer payments or let you pay even less
if you are not able to do so.
However, if you went the private student loan route, you are
going to find it more difficult to get a debt consolidation as
you are really at the mercy of your creditors. Not only do they
not have to follow the same interest rates that your government
follows – which are fairly low – but they don’t have to let you
get a debt consolidation either. They can treat your private
student loan much like a personal loan that you have taken out
for college.
How your debt consolidation would work is really up to the
company that owns your loan. Right now because there are so many
difficulties in the economy, most private student loan owners
are finding that there are no debt consolidation options for
them as their banks are not offering them. Not only that, but if
you did manage to find a debt consolidation, experts say that it
would be a variable rate loan.
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