Best Consolidation Companies For Student Loans

7 min read

Consolidating student loans is the best way to lower monthly payments and increase your credit score. In fact, according to TransUnion’s 2015 report, having a high FICO score was shown to have a positive correlation with loan consolidation. A higher credit score means you’re less likely to default on your debt payments, and if you do end up missing a payment, consolidating may help save you from collections. Here are some ways that you can benefit from consolidation:

Lower Monthly Payments

A good consolidation program can lower your monthly payments by over 25 percent. Your payment amount will depend on how much you owe, what type of loan(s) you have, and what state you live in. However, a good rule of thumb is to multiply your monthly payment by 1.25. So if you were paying $500 per month and you consolidated, your total payment would drop to about $400. That’s not bad!

Increase Your Credit Score

If you want to improve your credit score (and chances of receiving future financial services), consolidating your student loans will definitely get you closer to where you need to be. According to Experian’s report, having a credit score above 700 will make you eligible for certain banking services, including opening up checking, saving, and credit cards. Having a low credit score can even affect your chances of getting accepted into college. If you think that your scores are too low, check out our list of best student loan refinance companies below.

Get Out Of Debt Faster

One thing that everyone wants is to pay off their debts as fast as possible. After all, who doesn’t want to feel free? But, sometimes the path to becoming debt-free may be longer than we realize. If you have several small debts that add up to thousands of dollars, you might not be able to pay them individually. Instead, you’ll need to consolidate them under a single loan. Then, you’ll only have to make one set of payments instead of many. Plus, consolidating your debts could mean savings on interest.

The following three companies offer great student loan consolidation options. You should always research each company thoroughly before choosing any lender. We’ve included information on minimum requirements and fees below.

Credible – Minimum Requirements:

You must have at least two active federal student loans

Your current federal student loan balances cannot exceed $40k ($60k for PLUS loans)

Borrowing limits are determined by your income level; see details here.

Income Level Maximum Loan Amount

$0-$15,000 $350

Best Consolidation Companies For Student Loans

American Student Assistance

American Student Assistance is the best consolidation company for student loans because they offer the lowest interest rates of any company. In fact, there was an APR rate of 0% for three years. After those three years, the APR increases to 6.84%. If you want to consolidate your debt, this should be at the top of your list. Their website looks great, and it’s easy to apply for online.

Sallie Mae

Sallie Mae offers low monthly payments for their students if you choose to pay them over time instead of paying the whole thing off right away. For example, you could set up an automatic payment plan where you make ten equal payments each month. However, once you have paid off the loan, you would not get a lower interest rate than if you had paid off the entire loan right away. You may be able to find a Sallie Mae representative who will walk you through setting up your own auto-pay plan.

Citibank

Citibank’s student loan repayment program is called Citi Simplicity. All you need to do to qualify is start making payments on your loans early. Once you have made six consecutive payments on time, Citibank will increase your monthly installment amount. By increasing your payment amount, you will save money on interest charges.

Capital One

Capital One offers some of the best customer service out of all the consolidation companies. When you call about getting approved for a loan, the person on the phone will talk to you and help you figure out what type of loan will work best for you. They even provide free information on how to manage your finances.

Quicken Loan

Quicken Loans makes it easy for customers to apply for a personal loan. On their website, you can fill out a simple form and then answer questions about how much you want to borrow and how long you think you’ll take to pay back the loan. Then, after you’ve submitted the application, you’ll receive a confirmation email telling you whether or not you’ve been accepted.

SoFi

SoFi is known for being the best provider of student loans. Not only does their website look clean and user friendly, but they also offer an array of services. These include helping employees with their education funding, offering free credit score reports, and having representatives available to speak with you at any time of day.

Navient

Navient provides loans for both federal and private student loans. Customers often complain about the high fees that Navient charges, but if you compare them to other student loan providers, you’ll notice they’re actually quite cheap. There isn’t any minimum balance requirement either, so even if you don’t owe anything on your current loans, you might still qualify for a loan.

Best Consolidation Companies For Student Loans

Sallie Mae

Sallie Mae is the largest provider of student loans and grants in the United States. When students begin their college career, they have many financial obligations including tuition costs, room and board, books, supplies, childcare, entertainment, etc. Fortunately, Sallie Mae offers assistance to help them cope with these expenses while attending school. The company also offers a wide variety of grants and scholarships for those who qualify. If you’re looking for consolidation options for federal student loan payments, consider using the services provided by Sallie Mae! Their loans may be consolidated into one monthly payment at a lower interest rate than what you currently pay.

Great Lakes Educational Loan Fund

The Great Lakes Educational Loan Fund was created as a lender of last resort for students seeking federal funding. This means that if students have defaulted on their private loans, GLELF would step in to make sure that they receive all their federal funds. Students should carefully review the terms of repayment before applying for any of these types of loans.

Nelnet

Nelnet provides a comprehensive range of educational lending products and services. Whether you need to start repaying your federal education loans or consolidate private loans, Nelnet has a solution for you. There are different types of Nelnet loan programs based on personal credit history and income level. Many people benefit from Nelnet’s low-interest rates; however, there may be additional fees involved depending on your particular situation.

US Bank National Association

US Bank National Association is a subsidiary of US Bank Corporation, a financial institution based in Nebraska. US Bank National Association provides several different types of services for its customers. One type of service offered is educational financing. This includes several different kinds of educational loans. These loans offer a flexible method for students to repay their debts without accruing unmanageable extra charges.

Navient Education

Navient Education is a Delaware C Corporation that operates as a finance company providing a variety of financial products and services. You can apply for some of their programs online, over the phone, or in person. They provide a variety of educational financing options including Stafford loans, PLUS loans, Perkins loans, Direct Subsidized loans, and others. Most of their products are available to everyone regardless of credit score, income, or debt amount, making them a great option for any student.

New America Education Finance

New America Education Finance specializes in helping students pay for higher education. They work closely with colleges and universities to develop customized financial aid packages for each individual student. This way, students get the financial support they need to stay focused while studying. The company provides several different types of financial aid programs, including federal loans, state grants and scholarships, and private loans.

First Franklin Financial Services

First Franklin Financial Services is a division of M&T Bank that provides financial services to consumers. They offer different types of educational loans that are designed specifically for students. Some of these loans are guaranteed by the U.S. Department of Education and the Federal Family Education Loan (FFEL) program. Other loans are issued directly by the bank. Either way, they guarantee the customer’s right to obtain specific types of federal loans again in the event of default.

Best Consolidation Companies For Student Loans

Credence Financial

Credence Financial was founded in 2008 and specializes in providing student loan consolidation services. They are considered one of the best student loan companies for their effective debt management practices. Their website offers information about how they manage your money after paying off your loans. 2. Better Way Credit Union

Better Way Credit Union was established in 1957 and specializes in offering financial products. However, they offer a special program that helps students pay back their student loans faster. There are several different plans that you can choose from depending on your income. 3. National Collegiate Funding LLC (NCF)

National Collegiate Funding LLC was created in 2007 and specializes in working with private lenders as well as federal and state sponsored lenders. They have programs designed especially for graduates who may be having trouble repaying their student loans. 4. Educational Credit Management Corp (ECMC)

Educational Credit Management Corp was established in 1967 and specializes in helping people repay their student loans. ECMC only manages private loans, not federal or state government loans. They try to work with you to help you repay your loans. You can get qualified for low interest rates if you have good credit. 5. ConsumerInfoBC provides helpful information for consumers regarding consumer protection laws. They provide information on payday lending, prepaid cards, and other types of credit. They also let you know what types of companies are regulated under the Fair Debt Collection Practices Act (FDCPA). If you have any questions, they can be contacted at 1-866-400-9940. 6. Student Loan Hero was started by myself because I could never find anyone doing what I wanted to do – personal finance advice. So, I decided to start helping others and started Student Loan Hero. 10 months later, I still run this company and I’m hoping to make it a billion dollar company. Check out my story by clicking “Hi!” on top right portion of this video!

Credit Sesame is the best consolidation company for student loans. If you want to consolidate private student loan debt, then use Credit Sesame. After people use credit sesame they report lower debt payment amount and reduce monthly payment up to 25%. Many companies try to act sketchy so just make sure you don’t fall victim to them.

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