Consolidate Student Loans

Go With a Major Provider

Wachovia does financial business in a few dozen states through regional banking branches, and other home mortgage and automotive finance offices. This diverse portfolio is characteristic of Wachovia’s expansive services. The company is one of the most visible in the U.S. and specializes in personal, small business and commercial investments and wealth management, at all levels. Within such a financial model, educational loans have found a steady client base.
Wachovia provides a slew of educational loans, from K-12 to private college, continuing education to international student, and from federal undergraduate to parent and grad federal loans. The Federal Family Education Loan Program (FFELP) is administered by participating lenders on behalf of the federal government. Crucial student loans such as the Stafford and Perkins Loans are part. The Federal Consolidation Loan is part of the FFEL program. It is extended to borrowers through Wachovia’s student loan services.

Considering Consolidation

If consolidation seems like the next big fashionable financial trend, you are advised to consider it carefully before hopping on the bandwagon. Consolidation is subjective and personal. Its effects are long-term. Some factors to consider:

• What types of student loans do you have?
• Where are you in repayment? New grad? Halfway? One more year to pay?
• What are your interest rates?
• How many lenders do you use?
• Are any loans in default?
• Do you have increasing difficulty making monthly payments?
• Are there other more pressing financial responsibilities?

Once you have mulled over the answers to these you are in a good position to consult with a Wachovia loan officer. He or she will review your financial situation in light of loan load and offer consolidation loan guidance.

Wachovia’s Federal Consolidation Loan

When you have one or more FFELP loans, you may be eligible for the Wachovia Federal Consolidation Loan. The government has determined non-negotiable terms for the FFELP consolidation loans:

• Consolidation loans are subject to a fixed interest rate (as of July 1, 2006) based on the “weighted average” of your federal loans on the date of your consolidation app. Fixed rates have a cap of 8.25.
• Borrowers are not subject to credit checks or fees.
• Married couples may not jointly consolidate their federal loans anymore; also since July 1, 2006.
• Students still in school may not consolidate their federal loans.

Wachovia is free to fill in other financial terms and borrower benefits intended to compete with other lenders in the same category. You’ll find that for the most part, borrower perks are pretty similar:

• Wachovia requires a minimum of $10,000 in federal loan debt to qualify for the consolidation loan.
• Federal loans in default are not eligible for Wachovia’s program.

If you consolidate at least $15,000 in loans you may earn interest rate deductions for good borrower practices: electronic debit payments gets you a .25% reduction, and 24 consecutive on-time payments gains you another 1.00% off.

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Compare Program Terms and Benefits

Consolidating your private student loans is a whole separate process from federal consolidation. If you are bogged down with multiple private student loans, if you’ve already applied for loan deferment or forbearance you may consider a student consolidation loan to be a practical financial decision.
When you opt to consolidate, typically you’ve already weighed the pros and cons. Factors to consider include:

• Total monthly loan payments per month.
  
• Interest rates
  
• Lenders
  
• Number of payments remaining
  
• Credit history
  

Evaluate your financial situation and you will make an informed decision, but it should be in concert with an account manager through a reputable lender. Right now take our simple self-assessment quiz and decide for yourself if you’d be a likely candidate for a private student consolidation loan.

Consolidating Private Education Loans

Private student loan lenders like Sallie Mae, Nellie Mae, Bank of America, and Citibank all feature their own brands of specially marketed student loans. No doubt they also extend equally branded private consolidation loans.
If you have multiple private student loans you may apply for a consolidation loan. Your consolidation lender pays off your multiple loans and a new single loan is issued to you that combines the loan values of all your loans. This new loan now is associated with a new interest rate, new loan repayment term, new life of loan, new loan limit, and new lower monthly payment.

How to Apply for Financing

When you apply for a private consolidation loan you are likely to find a convenient online applicataion. As simplistic as this seems you’ll still be required to provide all kinds of information associated with your current loan and financial state. Make sure you have loan account numbers, pay-off figures, due dates, names of lenders, and balances owed.
Credit history matters when it comes to private consolidation. These are not federally guaranteed student loans. If you are trying to apply for a private consolidation loan with bad credit, here’s your best strategy: apply with a credit-worthy co-signor, a trusted friend or family member.
The approval period could be up to two months. You are not excused from loan repayment during this time.

Where Have All the Borrower Benefits Gone?

Private student loan lenders used to really flex their competitive muscle when it came to private student loans. They’d stack up interest rate discounts and cut fees for good customers. But with the College Cost Reduction Act of 2007 private lenders’ subsidies were deeply cut. Consequently lenders have cut many of the borrower perks that formerly would have been passed onto you.
Your best strategy: shop very carefully for private consolidation products. Lenders may have limited repayment terms, ramped up minimum loan limits, and eliminated all interest rate deductions.

Popular Consolidation Lenders

Today’s college grad is fortunate to have the convenience of online account management capabilities through most lenders. This dexterity allows you instant, up to the minute information and access to your student loans. You may change information, make payments, and even apply to postpone a payment. Tools like these give you the financial muscle to adjust account preferences and make important and timely decisions that affect the rest of your financial life.
There are many more options for private loan consolidation, including those available through your student loan provider. In some cases the biggest differences between lenders lies in the borrower benefits and loan terms, such as fees, repayment options, types of loans accepted and interest rate reductions for good practices. Shop carefully.