Reconsolidate Private Education Loans?
Asked by shachar86I was an international student until a week ago, and now I'm eligible for subsidized federal loans. For the past two years I have been taking unsubsidized private loans and have been paying LIBOR+1-3%. I would like to refinance my loans to subsidized loans now that I am eligible, but am wondering if I can subsidize previous years loans. Thanks
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Answered by Sallie Mae
You cannot consolidate private ed loans into federal consolidation loans. You can consolidate your private education loans together. The benefit of doing this is you get one monthly payment, and if you extend your repayment term, you can lower the amount you pay each month. However, if you pay only the minimum each month, you will end up paying more interest over the life of a loan (just like a credit card). Private student loans (including consolidation loans) are not guaranteed by the government, and are therefore a greater risk to the lender. This is why they are credit based. Your interest rate will be based on your credit history. It can help to get a cosigner with good credit - the cosigner can usually be released after a certain number of on-time payments. Here are the details on private student loan consolidation: www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/private.htm
You cannot consolidate private ed loans into federal consolidation loans. You can consolidate your private education loans together. The benefit of doing this is you get one monthly payment, and if you extend your repayment term, you can lower the amount you pay each month. However, if you pay only the minimum each month, you will end up paying more interest over the life of a loan (just like a credit card). Private student loans (including consolidation loans) are not guaranteed by the government, and are therefore a greater risk to the lender. This is why they are credit based. Your interest rate will be based on your credit history. It can help to get a cosigner with good credit - the cosigner can usually be released after a certain number of on-time payments. Here are the details on private student loan consolidation: www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/private.htm
