Consilidate Student Loans

5 min read

What Is Consilidate?

Consilidate is a student loan refinancing company. Their website states “We help students consolidate their loans and save money while doing it.” We decided to do our own research and find out what we could about this new way to refinance debt.

Who Uses Consilidate?

The majority of people who use consilidate are college graduates. According to the website, “the average graduate owes $27,000 in student loans.” So if they are struggling to pay off these bills, something like consilidate might be able to help them consolidate their loans at a lower interest rate. When looking into the fine print, we saw some things we weren’t exactly excited about. One of the biggest concerns was that they would put students into risky sub-prime loans. A riskier loan means a higher interest rate, which makes paying back the loan even harder. Students should be aware of this before signing anything. Another thing we noticed right away is that the company’s website only mentions federal loans. If students are having trouble getting approved for private student loans, then this won’t work for them either.

How Does Consilidate Work?

Consilidate works by using a third party bank to actually refinance the student loan. In order for a student to take advantage of this service, they have to fill out a simple online application. After submitting their information, they receive approval or rejection from the bank, and then once accepted, they make payments directly to the bank instead of making payments to the original lender. Because the loan payment goes straight to the bank, the student saves hundreds of dollars each month. However, because it is done electronically, there is no paper trail, and thus no proof that the student actually paid their loan.

Why Would People Sign Up for Consilidate?

Students who sign up for consilidate say that they want to reduce the amount of time they spend repaying their loans. Many say that they don’t feel comfortable talking to a financial counselor about how much they owe and whether or not they qualify for consolidation. Students also said that they were concerned about losing access to credit cards to repay their loans. Because the company doesn’t check any personal information, they aren’t subject to any background checks. Students also say that they don’t trust the banks anymore, especially after watching documentaries like ‘Inside Job’ and learning that Wall Street caused the 2008 financial crisis. All in all, students seemed to believe that consilidate is a safer alternative to traditional loan repayment methods.

Are There Any Other Companies Like Consilidate?

Yes! There are two major companies that provide similar services. These companies are called LendKey and Revolver. Both charge the same fee (usually around $100) and both claim to offer better rates than consilidate. However, they require a minimum deposit of $1000, so they may not be a good option for those with smaller amounts of student debt.

If you’re interested in trying this out, we suggest asking friends or family members first who have already had success with this method.

Consilidate Student Loans

Don’t let student loans go to waste

Student loans are one of the biggest debt traps in our entire economy. If you don’t pay them off they’ll keep getting bigger and bigger until they swallow you whole. Many people find themselves trapped under the weight of student loan debt for years after college, and the only way out is to get rid of the debt completely. But first, you have to understand how student loans work, and what options you actually have.

Take action now!

There’s no time to lose! Here’s what you need to do to start paying down your student loans today.

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Consilidate Student Loans

How do I know if my student loan is Consilidated?

If your student loans have been consolidated under federal law then they are consilidated. To check this, you need to open a bank account. You can get an application at any local bank and once approved, you should receive an official letter stating your account number. If you don’t get this letter, then your student loan is not consilidated.

What if I don’t want to consolidate my student loan?

There’s no problem with not wanting to consolidate your student loan. However, you’ll probably have to pay a penalty fee if you decide to file for bankruptcy instead of consolidating your loans. So even though you don’t want to consolidate, it may actually save you money over time!

Will I lose interest payments if I Consolidate?

This might depend on what kind of loan you’re talking about. There are two types of student loans; subsidized loans and unsubsidized loans. A subsidized loan means you won’t be charged interest while you’re enrolled in school. An unsubsidized loan means you will start accruing interest after you graduate. The good news is, some lenders offer both types of loans at low rates, which makes them great choices for consolidation.

Can I refinance my student loan and still earn income based repayment?

Yes, you can refinance your student loan. In fact, you may qualify for a lower rate than you were previously paying. Plus, you could change how much you make monthly contributions (i.e., income-based repayment) to keep yourself current on your loan payments, avoid late fees and penalties, and potentially reduce your total amount owed over time.

My credit score is bad, but I’m sure I’d qualify for a loan now. Is this true?

No, your credit score doesn’t determine whether or not you can get a student loan. Your credit score does play a role in determining the loan terms offered to you, however. Low credit scores typically mean you’ll pay higher interest rates and longer repayment times. Keep your credit score high and your debt down, and you’ll reap the rewards of lower rates later.

Do I get penalized if I switch schools?

You don’t get penalized if you transfer schools. The best advice is to contact the lender directly to find out if you’ll be able to transfer without any problems or if you’ll incur a penalty fee.

When applying for a loan, what happens if my credit score drops?

Consilidate Student Loans

Credit card debt can be difficult to obtain student loans to pay off if you’re not sure how much you owe and where you should look to get help. Here’s a quick guide on what to do first.

How To Consilidate Loan Payments | How to Pay Off Credit Card Debt

How to Consilidate LoanPayments | How to PayOffCreditCardDebt

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Consilidate Student Loans

Learn how to use a credit card to get money off of student loans

Open a bank account

Transfer money from your checking/savings account to your new account

Use your new account at retailers (e.g., gas stations) to pay your bill

Paying for tuition using a credit card instead of cash means paying less interest

If possible, apply for multiple cards with different types of rewards

Consolidate student loan payments

Find out if your school offers payment consolidation programs

Get student loan payoff dates

Apply for any applicable federal financial aid

Ask about ways to lower monthly payments

Consider refinancing

Make extra payments

Set up automatic payments

Take advantage of any employer matching program

Don’t stop making payments after graduating

Stay current and make sure payments keep getting paid

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