Financial Aid Consolidation

Written by Nicole Madison
Bookmark and Share

Often scholarships, grants, and federal student loans just aren't enough to cover all of a student's education related expenses. When there's not enough money to go around, some students choose to take out loans through private financial institutions, such as banks and credit unions. Private financial aid consolidation programs offer a way to consolidate nearly all types of non-federal educational loans.

Private Financial Aid Consolidation

Private consolidation loans, unlike federal consolidation loans, are credit based. Typically you must be a United States citizen or a permanent resident, have a good credit history, and have stable employment to qualify for private financial aid consolidation. If you do not meet the credit and employment requirements, you can apply with a cosigner, who does meet the requirements, to boost your chances of being approved.

Private financial aid consolidation loans can be used to consolidate all private education related loans as well as all federal student loans. Although you can consolidate your federal student loans along with your private loans, it is generally not recommended to do so. Instead, it is best to apply for a federal consolidation loan for federal debt because federal consolidation loans are subsidized by the government and offer lower interest rates.

Private consolidation loans can be use for all education related debt and can be used to fund upcoming education related expenses, such as tuition, room and board, textbooks, transportation, and miscellaneous fees. Interest rates and loan fees vary depending upon a variety of factors including, but not limited to, credit history. The length of the repayment period and monthly payments vary depending on the lender you choose as well.

Bookmark and Share