Lower your monthly loan payment when consolidating with one of these top seven student loan consolidation companies.
If you’re like most Americans, you probably graduated from college with student loan debt. Often times, this debt is made up of several loans, which each have their own interest rates and repayment plans.
Not only can this get confusing when it comes time to pay back the loan, but it’s also typically more expensive because you have multiple minimum payments.
Fortunately, there are several student loan consolidation companies out there that will roll all of your loans into one, resulting in a lower monthly payment that is easier to manage.
7 Student Loan Consolidation Companies
Here is a list of the Top 7 student loan consolidation companies.
1. Citizen’s Bank
Citizens Financial Group, Inc. reports that customers, on average, can save as much as $2,628 per year through their student loan refinance program.
Their variable interest rates range from 1.87% to 8.90%, while their fixed rates start at 2.39% and top out at 9.15%.
Customers can shave .5% off that rate if they sign up for automatic payments.
Citizen’s payment plans are flexible with options ranging from 5 to 20 years.
Additionally, there are no application, origination or disbursement fees. You won’t find any prepayment penalties either.
Another reputable lender to consider when consolidating student loans is SoFi.
This company guarantees that they will offer you the lowest rate, and will even match another lender and reward you with $100 if you find a competitor that can beat it.
When considering your application, SoFi performs a soft credit pull so that your credit isn’t affected. Like Citizen’s Bank, SoFi doesn’t have any hidden fees.
What we do love about SoFi is that they offer access to career coaching and financial advice at no extra cost.
Newly graduated students can utilize these services to land a job and create a plan on how to pay back the loan as quickly as possible.
With Earnest you can consolidate your federal and private loans into one. The company is BBB accredited and offers great flexibility when it comes to making payments.
Borrowers can choose between bi-weekly and monthly payments, as well as select their preferred payment amount to match their existing budget.
They can also adjust the payment date or increase the payment amount anytime. There’s also the option to skip a payment and make it up later.
Variable rates begin at 1.88% APR, while fixed rates start at 2.55% APR.
Both of those rates include a .25% deduction for automatic payments.
As one of the best student loan consolidation companies, Earnst offers a library full of information, including how to build good credit and how to manage credit card debt.
4. PenFed Credit Union
Although PenFed is a credit union and not a bank, they are federally insured by the National Credit Union Administration.
They offer fixed rate student loan refinancing with a starting APR of 2.89%. The online application is easy to fill out and there are no fees or prepayment penalties associated with the loan.
Once you apply, you’ll be shown the repayment plans you qualify for. You have the ability to select the one that best fits your circumstances.
The only downside to PenFed Credit Union is that not everyone can use them. You’ll need to be a family member of a current or prior service member or government employee.
StudentLoans.com is run by the Brazos Education Lending Corporation, which was founded back in 1980. It’s a non-profit corporation that is dedicated to helping make college more affordable.
As a result, they are able to offer fixed rates from 2.15% APR to 3.97% APR (with the auto-pay discount) and variable rates from 1.87% APR to 4.79% APR (with the auto-pay discount).
The organization allows for consolidating both federal and private loans.
The company even allows graduates to refer a friend and earn $200, so if you have any fellow graduates who also need to consolidate, this is an excellent way to earn a few extra dollars (which you should totally use toward your student loan debt).
Discover has always been a great company when it comes to college students and I also consider it one of the top student loan consolidation companies.
You’ll find Discover’s variable rates range from 1.74% to 5.74% APR. Fixed Rates start at 3.49% and max out at 6.99% APR.
There’s also a .25% rate reduction for those enrolled in automatic payments. There are no application, origination or late fees either.
Graduates can apply using a computer, laptop, tablet or mobile device. They can also call 1-800-STUDENT if they’d rather go through a representative. The entire application should only take 15 minutes.
7. Federal Student Aid
If you only have federal loans, you can go right to the Federal Student Aid website and fill out the application to consolidate those loans.
This service is completely free, but it will take approximately 30 minutes of your time to complete the application.
Make sure you have your FSA ID, as well as your personal and financial information handy to speed up the process.
Once the loan is approved, you’ll be shown your new loan’s monthly payment and fixed interest rate.
You can either accept that offer, or deny it if you think you can get a better deal with one of the banks or credit unions mentioned above.
Student Loan Consolidation Companies: Conclusion
Here at Five Bags of Gold, we encourage individuals not to take on student loans, but we recognize that many individuals already have.
I didn’t realize the burden of student loans until I was in that position myself. I used one of the best student loan consolidation companies to roll all my loans into one.
I was able to pay off the loan much faster, which is why I recommend graduating students look into doing the same.
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6 thoughts on “Top 7 Student Loan Consolidation Companies – Lower Your Monthly Payment Today”
Thanks for this, I found it quite interesting to read. Though I’m not American, I like viewing and comparing details with where I am from. I am considering going to university which is quite expensive so going through this gives me a brief understanding of the help that’s available out there!
Yes, and I learned the hard way, which is why I teach others not to take on student loans, but I realize some are like me and already in that situation and this was helpful for me to get out of that debt. Glad you liked the article!
I understand what it’s like to have a loan on your neck as a student.
I didn’t incur any while in college, but I sure know people struggling to pay up the debts.
So, it’s good to know there are loan consolidation companies helping students with the best plan on repayment.
Thank you for bringing this to light.
Yes, any kind of loan debt causes stress, so I totally agree with what you are saying. It’s so important to create a plan to get out of debt. Glad you liked the article!
I do like the idea of debt consolidation, though only because it keeps things simpler. It can be a pain sometimes, keeping track of who you still owe money to.
What I’m curious about is how consolidation possibly speeds up the payment process. I’m guessing you’re still paying the same total debt.
Most of the time, when you consolidate your debts, you get a lower interest rate, which will lower how much you pay out over the course of the loan. So, not only do you have the benefit of a lower monthly payment that is more affordable, but you’ll also pay less in total when all is said and done.