To consolidate means to put several loan together to become one. There are several companies which offer this service to the students. In this article, we are going to look at the best student loan consolidating companies
Before we look at who-is-who, there are 7 criteria that are used to gauge the companies and here, we are only going to look at the top 5.So here we go…
The number one company is known as SoFi. This is the lender an APR of 3.5% on the higher side and a lower of 2.13%.
This is given as both variable and fixed while the terms of the loan are in 5,10,15 and 20 .The eligible loans are both federal and private ,For those with graduate and undergraduate, you will be eligible for the top ranking student loan consolidating companies.
Citizens Bank takes the second position with a range of 2.18-4.74% in the APR rate while loan type is the same as that of SoFi. All the other criteria, i.e terms, eligible loans and degrees remain pretty the same as the number one ranked SoFi.
Coming closely third among the best student loan consolidating companies is earnest which has a range of 2.13-3.50% of the interest rate in APR.Save for the terms which are 5-20, the other criteria remain the same as the previous two.
U-fi is the fourth placed company whose interest ranges from 4.45-5.38% and there are other attractive terms to boot. For instance,you can gain access to a consigner within 2 years .If you make your monthly payments on time for the first 1 year without defaulting ,you get a cash back reward of 1.5% .
lend key is the 5th placed in the rank of the best student loan consolidating companies .Both consolidation and refinancing options will be availed to you upon request. A credit union that is not-for-profit could be used to refinance. The rates are low starting at 2.13%. There is of course the release of the consigner after just 1 year.
As you will have noted with all the above companies, they are the best in the year 2016, so you can be sure the features given and rank are the most up to date.
FICO credit score
It is not a walk in the park though, if you want to be considered by any of the above. One of the most important considerations will be the credit score. This score is pegged at 660(which is quite high by the way) and also you debt-to-income should average 40%
Your annual gross income should be in the range of $24,000. You will find that these are pre-conditions which are achievable. If you find that they are probably too high, it is only because these are the top companies which have to set the example for others to emulate.
All in all, you can sample some of the features of the consolidating companies and see how you will fare.