Fed Financial

I need help consolidating PRIVATE student loans (NOT FEDERAL)?

I have tried to contact many different consolidation companies but they cannot help me with PRIVATE student loans. My payments are outrageous and I cannot pay them. I have placed them in forbearance many times but all that is doing is making my total owed amount go up since it still accrues interest. Remember these are PRIVATE student loans not federal and right now my interest rate is 14%!! PLEASE SOMEONE HELP ME!! mrs.izabel, Thank you but again these are PRIVATE student loans not federal. I have already consolidated my Federal student loans.

Public Comments

1. Try this http://www.dlssonline.com/index.asp . To my knowledge, they consolidate any student loans.
2. Most lenders do not offer private loan consolidation, but you will find some out there who do. (Note: Private loans cannot be consolidated through the FFELP or Direct Loan programs.) www.finaid.org (a great resource) offers a list of private loan consolidators, as well as some sound advice. Here is their list: http://www.finaid.org/loans/privateconsolidation.phtml. Not to push a certain company, BUT, of the companies listed here, you might look first at Key Bank, Wells Fargo, and NelNet, as they are established education loan lenders. Some lenders on www.finaid.org's list may no longer offer private consolidation; others may require at least some of your loans to have been borrowed through them to begin with. Key Bank's program does not require that you have loans with them in order to consolidate with them now. A few words of advice: You will rarely -- if ever -- obtain both a lower monthly payment and a lower interest rate. Generally, the longer your repayment term, the more you pay in the long run and the more "high risk" the loan is for a lender (hence, the higher rate). However, this is not unique to student loans (for example, auto loan rates work in a similar fashion). As you do your research, pay attention to the terms of the loan and the interest rate they are offering you. In consolidating your private loans, you should expect to see a slight increase in your interest rate; it is up to you to decide whether this increase is outweighed by the benefit of a lower monthly payment (if it helps you pay your other bills and preserves a good credit rating, the answer may be a resounding "yes"). Take advantage of any benefits that the company has to offer: consider having your payments automatically deducted from your checking/savings account each month -- it can often save you .25% off your interest rate.