In this article, we will present you a list of the best student loan consolidation companies as loan refinancing is hotly debated in the United States.
Nowadays, 70 percent of the students end up with some kind of debt after graduation. Fortunately, there are some excellent student debt consolidation companies that help students get rid of these debts by the end of college.
As the name implies, refinancing grants graduate and undergraduate borrowers the opportunity to refinance educational debt at a lower interest rate. In other words, it’s an opportunity to pay less every month for your loan. That being said, interest rates can drop down to even 2.13 percent, meaning that borrowers can even save up to $14,000.
Student Loan Consolidation: Top Companies
First of all, student loans are not equal. For instance, these loans and interest rates vary depending on rate type, credit worthiness, and loan type. After doing some consistent research, we have developed a list of the best loan consolidation companies that will provide you with the most convenient loan consolidation options.
Based on American Banker statistics, SoFi focuses on well-educated borrowers with an income of around $150,000 per year. It means that if you want to benefit from the services of this company, you should have low debt loads and good credit.
Also, you have to meet several requirements including a strong salary and credit score. SoFi lenders will benefit from an entrepreneur program, career support, and auto-pay discount, as well as zero origination fees and no prepayment penalties. However, you must have previously completed a graduate or undergraduate degree program.
With SoFi college loan consolidation, lenders will get:
- Fast application process, excellent customer service, and low-interest rates.
- You will get repayment terms of 5, 10, 15, and up to 20 years.
2. College Ave Student Loans
With College Ave, even if you have $0 origination and application fees, your minimum loan has to be of at least $5,000. Still, it is one of the best student loan consolidation banks because it comes with great advantages for parents, graduates, and undergraduates.
- You will have flexible payment term choices (between five and 15 years) and low-interest rates.
- College Ave comes with a quick and simple application process.
- Your interest rates can be either fixed or variable, based on your decision.
3. Citizens Bank
Depending on your eligibility, Citizens Bank may offer you the lowest possible rate. Nevertheless, you have to keep in mind that this student loan consolidation company usually comes with quite competitive rates compared with other companies. Also, you must have a secure job and a strong credit score.
- You will benefit from an excellent customer service (24/7) and a wide range of term length alternatives such as repayment plans of five to 20 years, as well as zero prepayment, origination, and application fees.
- This company offers refinancing and consolidations for both private and federal student loans. Also, you can get fixed or variable interest rates, depending on which one suits best your financial needs.
It is worth mentioning that you have to meet many requirements to become an eligible Earnest client. First, you have to be at least in the final semester of degree program. Also, you need to have more than a strong credit score and your student loan debt must be of minimum $5,000.
Despite these requirements, Earnest is one of the best student loan consolidation companies thanks to various benefits:
- The best thing about Earnest are the unique deferment alternatives, especially the job loss protection.
- You get a highly flexible repayment plan. Plus, the rates can be either variable or fixed.
- Also, you can always switch between fixed and variable interest rates. In addition, there are no prepayment, origination, and application fees.
- The company consolidates and refinances both private and federal student loans. In addition to this, you will have bi-weekly payments.
The only downside is that the application process takes a while because many data points must be analyzed to establish your eligibility.
Last but not least, LendKey is part of the top student loan consolidation companies in the United States, and one of the newest members in this market. Therefore, this company might be your best bet for many reasons.
Still, you have to meet a number of requirements including a medium salary and credit score. In addition, lenders must have completed an eligible graduate or undergraduate degree program.
- Low interest rates. Plus, lenders benefit from a cosigner release after one year of on-time monthly payments.
- This company provides a credit union experience, excellent customer service, and a personal approach to borrowing. Also, repayment terms are highly flexible (between five and 20 years).
- You get no prepayment penalties or origination fees. Also, both types of loans are available.
Final Word On Student Loan Consolidation Companies
To sum up, there are a wide variety of student loan consolidation companies which focus on helping students deal with their debts before and after finishing college. So if you have been sitting on the fence until now, maybe one of these companies will offer you the deal you have always been looking for.