Private Student Loan Consolidation: FAQ Part 1

If you have decided that private student loan consolidation will help you in affording college, here are some commonly asked questions about this financial aid program.

1. Is a co-signer required?
A co-signer is required if you are consolidating only undergraduate student loans (i.e. a student and a parent must sign). However, borrowers that have graduate degrees are allowed to consolidate their student loans (both undergraduate and graduate loans) without a co-signer. It is recommended though, that graduate degree holders still apply with a qualified co-signer, as it might qualify you for a lower interest rate on your student consolidation loan.

2. What types of private loans can be consolidated?
Any nationally-marketed private student loan and usually federal student loans can be combined as well (although this is NOT recommended!).

3. How long will it take before my student loans are consolidated?
You should be able to expect the entire private student loan consolidation process to be completed within 45 days. Obviously, the amount of time it takes to complete depends on whether or not you provide the required information (i.e. your income, current private student loans, etc.).

4. How long will I have to repay my private student consolidation loan?
Depending on the amount you borrow, you could have as long as 25 years (for undergraduates) or 30 (if you are a graduate student).

5. Is there a minimum loan amount?
Yes, private student loan consolidators usually require you to have borrowed a certain amount in current loans to be eligible for consolidation. This amount ranges on average from $5,000 to $10,000.

6. Is there a maximum loan amount?
There is a maximum student loan amount of $150,000 for undergraduates and $250,000 for graduates, depending on the program.

7. Do I need to continue making payments on my existing loans while I am in the consolidation process?
Yes, this is highly recommended. Since the private student loan consolidation process can take up to 45 days to complete, you want to make sure that you don’t get behind in your payments on your current student loans.