Top 4 Companies that Consolidate Private Student Loans (CFG)
Multiple student loans can be a huge burden, and managing them individually is also extremely complicated. For individuals with multiple student loans, consolidating those loans can help you in a number of ways; not only does student loan consolidation help with decreasing your overall interest payments, it can also help you to avoid missed payments and the complication of making multiple payments. All of these consolidation advantages can make paying off your student loans much more convenient, and loan consolidation is also a helpful way to improve your overall credit score. The following is a list of the top four companies that provide loan consolidation services with rates as of July 2016.
Many large financial institutions offer loan consolidations. Citizens Financial Group Inc. (CFG), also known as Citizens Bank, rises to the top of the list in numerous surveys as a leading company in providing student loan consolidation services. Citizens Bank allows individuals to consolidate together, in one loan agreement, both their federal and private student loans. With a Citizens Bank student loan consolidation, borrowers can also combine their undergraduate and graduate loans together. Annual consolidation loan rates range from 2.19 to 9.39%. The rates on the loan consolidations depend on your credit profile. Rates can be variable or fixed, with loan durations of five, 10, 15 or 20 years. As is the case with most financial institutions, Citizens Bank offers numerous advantages for bank customers. These advantages include loyalty discounts and automatic payment discounts that can reduce rates between 0.25 and 0.50%.
CommonBond is another student loan provider that ranks high on surveyed lists for private student loan consolidation. CommonBond offers similar features to many other loan consolidation companies; however, its loan consolidations are done through a peer-to-peer (P2P) lending platform. P2P lending is an emerging form of lending, and these companies have been growing exponentially. Through this industry niche, P2P lenders allow borrowers to complete loan consolidations purely through companies with full-scale internet operations. P2P lenders have the advantage of lower cost structures through their internet operations, which allows them to provide more competitive consolidation rates than other financial institutions. Loan rates for CommonBond borrowers depend on the borrowers’ credit profile and range from 2.14 to 7.74%. CommonBond allows borrowers to consolidate both their federal and student loans together into one loan agreement. It also allows for both undergraduate and graduate loan consolidation in a single loan. Rates on the consolidated student loans from CommonBond can be variable or fixed. Loan durations range from five, seven, 10, 15 and 20 years.
SoFi is another up-and-coming P2P loan provider, providing loans through a P2P lending platform. Through the SoFi platform, SoFi provides loan consolidation services similar to other financial institutions; however, all operations are done through the internet. This advantage allows SoFi to offer lower consolidation rates than other financial institutions. Similar to other student loan consolidation providers, SoFi allows for private and federal loans, as well as undergraduate and graduate loans, to all be combined together into one agreement. SoFi also offers variable and fixed rates with loan durations that can span five, seven, 10, 15 or 20 years. Loan consolidation rates for SoFi depend on a borrower's credit profile and range from 2.14 to 7.74%.
With the P2P lending evolution beginning around 2005, P2P lenders have emerged as some of the top loan-consolidation providers in the industry. As a result, P2P lender Earnest also tops the list of private student loan consolidation companies. With Earnest, borrowers can receive loan consolidation rates as low as 2.15%, and rates that range up to 7.45%. Loan consolidations at Earnest can include federal, private, undergraduate and graduate loans. The company’s loan consolidation rates can be variable or fixed, with loan durations spanning five to 20 years.