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Student Loan Debt Consolidation

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Student life is to be enjoyed. It’s the time when you dedicate yourself to your studies and focus on your education in view of the profession you want to pursue. 

Very often, students apply for federal or private loans to pay for their studies and their living expenses. They then have to repay their loans once they graduate. A student loan payment can take a toll on people’s finances and sometimes student loan borrowers find it hard to repay their student loans, especially as new loan needs come into the picture, such as an auto loan or a mortgage.

Often, students take loans from different education lenders, such as federal education loans or private lenders’ student loans to cover their needs. They may even add a credit card to the mix. 

As a result, they end up juggling several monthly payments, varying interest rates, and repayment conditions that complicate the task of creating a feasible student loan repayment plan and keeping to it. That’s where a student consolidation loan can make life easier. 

What Is Student Loan Consolidation?

A consolidation loan for students allows you to refinance your student loan debt by gathering multiple student loans under one single new loan. As a borrower, you only have to make one monthly payment towards this consolidation loan, which simplifies financial planning and your monthly budget management!

Credit9 is one of the best private student loan consolidation companies. If you have graduated from college and want to consolidate your private student loans into one, contact us today to learn more about how we can help you with student loan debt or fill in our consolidation loan application form online.

If you have multiple federal student loans such as direct student loans or other federal student aid, you can opt for federal loan consolidation or even for student loan forgiveness programs, under specific requirements. 

When consolidating federal student loans with federal consolidation, you may lower the interest you pay or you can benefit from a fixed interest rate to plan better your loan payments. 

However, if you have private student loans, and maybe a credit card, or if you have both federal loans and debt to a private lender and wish to consolidate them all to lower your interest rate, you should contact one of the loan specialists at Credit9. 

Private student consolidation loans come with lower interest rates and an extended payment term to make it easier for people to repay their debt. 

Private Student Loan Consolidation

Credit9 offers new personal loans so that you can consolidate your multiple private student loans—under one consolidation loan with more favorable terms. Under specific conditions, you could also consolidate a credit card debt into your student loans consolidation plan. 

When you opt for consolidating your student loans, you benefit from a lower interest rate which can reduce your monthly payment and save you money. 

The payment period varies depending on the total debt you owe and your creditworthiness. Extending the payments helps you manage your finances in the long term and helps alleviate your monthly expenses. 

Call us now for a free consultation on your loan consolidation options! We will answer all your questions on student loan refinancing and find the best student loan repayment options for you.

Benefits of Private Student Loan Consolidation

Better repayment terms

Consolidating student loans, especially if you can also transfer credit card debt to your new loan, can help you combine all your credit balances into one single loan with better terms. 

Particularly, you can extend the repayment period to lower your monthly installment for more financial freedom. You can also negotiate a grace period, while one of the main advantages you enjoy when you consolidate your student loans is that you have one single, fixed, and affordable monthly payment.

Lower interest rates

Student loan consolidation usually comes with lower interest rates. That allows for lower monthly student loan payments, particularly when you are still struggling with work and living expenses. 

One monthly payment

A private consolidation loan is more manageable because you only have to make one single monthly payment, instead of handling several loans with different monthly payments. It’s easier to keep track of a single monthly payment and include it in your monthly expenses. It simplifies your personal finances and streamlines your repayment plan. 

Better credit score

With a consolidated student loan, you are more likely to stay on top of monthly payments and avoid default. Most people don’t fall behind on their payments when they only have one loan to handle. This means that after several months of timely payments, you can actually boost your credit score. 

A good credit score helps you when you want to apply for a car loan or a mortgage, later on. You can get easier access to credit and benefit from mortgage rates and more favorable repayment terms. 

Stretch or shorten the repayment period

Some people wish to repay their student loans as quickly as possible. Others prefer to extend a longer repayment period that offers them a lower monthly payment and gives them breathing space and money for their daily expenses. 

With a private student consolidation loan you can choose how long your repayment period will be. You can adjust your repayment term to your finances and your earnings and make a prediction on when you want to be free of debt. 

Why Should I Apply for Student Loan Consolidation?

Consolidating your student loans can be a life changer, especially when you have life goals such as creating a family or developing your own business. Being free of debt means it is easier to get funding for your new plans. 

If your credit score today is better than when you took out your student loans, applying for a consolidation loan means you can benefit from a lower interest rate. You will have lower payments and you will have money left for your personal expenses or other plans. 

What determines the terms of my private student consolidation loan?

A good credit score

A good credit score can improve your chances of landing a favorable interest rate on your loan. If your credit score is above 600 and ideally closer to 650 or even 690, you can qualify for a private student loan consolidation with a low fixed interest rate.  

Multiple student loans

A private student consolidation loan can include private student loans and federal student loans. They are all gathered under one loan to help you make a single monthly payment on more affordable terms. The total debt you owe determines the monthly payment and the repayment period. 

You need a job

You must hold a job to qualify for a consolidation loan. A stable job gives your financial institution the certainty that you will have enough money to repay the new personal loan. 

You need a co-signer

If you don’t have all the necessary qualifications for a new personal loan on your own, you could add a co-signer who will sign for the loan with you. The co-signer should cover all terms and conditions and will be responsible if you fail to make payments. The existence of a creditworthy co-signer can help you land a better deal with a lower interest rate and more favorable repayment terms. 

Credit9 for Your Student Loan Consolidation

Credit9 is your partner for consolidating your student loans. Our loan specialists are here to help you stay on top of your student loans and benefit from better repayment terms. Contact us today to find more information about what we offer and how you can become debt-free with a consolidation loan.

We check your credentials and your credit score and we then give you a consolidated loan for all your previous student loans. 

Our process is easy and fast, without hidden fees. We give our customers the best possible terms with lower interest rates and extended repayment periods.

Frequently Asked Questions

A private student consolidation loan can include both federal and private student loans. Remember that a federal consolidation loan only consolidates federal student loans, direct student loans, or public service loans, you can therefore not include your private student loans or credit card debt in such a consolidation scheme.

A federal student loan comes with a fixed interest rate and does not require a specific credit score. However, these consolidation loans can only include federal loans and they don’t always change the initial interest rates. 

In fact, the new interest rate on your federal consolidated loan is the weighted average of all the previous interest rates across all your federal student loans. You can extend the repayment period to make it more affordable for your budget. You can also check if you qualify for loan forgiveness, under specific circumstances. 

A private consolidated student loan can be obtained from banks and financial institutions. You can include both private and federal student loans and even a credit card. With a private loan, you can benefit from variable interest rates or a fixed interest rate. 

The interest rate depends on your credit score. With the addition of a co-signer, you can further improve the loan terms and achieve a low monthly payment that matches your income and your expenses.

Student loan consolidation has pros and cons for your credit score, but in the long term, it can boost your credit score. When you consolidate your loans, you are taking out a new loan to pay off your existing loans. 

This means that the old loans will be paid off, and a new loan will be reported to the credit bureaus. If you make all your payments on time, this can actually have a positive impact on your credit score by showing that you’re responsible with your debt.

However, if you miss payments on your new consolidated loan or default on it, your credit score can suffer. Additionally, applying for a new loan can temporarily lower your credit score while lenders will be checking your creditworthiness.

Overall, if you stick with your loan repayment plan and make timely monthly payments, it can help improve your credit score in the long run.

Imagine life after paying off your credit cards.

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