American college students are more familiar with debt consolidation loans and other credits than any other students in the world. The range of credits but also the number of beneficiaries increases from year to year, causing a massive stir across the country. As we are speaking, the student loan debt rate hits around 1.6$ billion dollars, with over 44 million users. Out of this massive amount of people, more than 40% percent struggle with repaying their loans. Therefore, in the previous years, federal and private institutions came up with various aid programs, and consolidation is one of them. We must remind you that debt consolidations are not exclusively for students, and they apply for almost every credit out there.
Unfortunately, most people don’t know about this, or worse, they don\t know what consolidation really means. Therefore, this article intends to shed some light on anyone in need of information, from students to corporate workers. However, we are going to focus on student debt consolidation loans, because they boomed in 2019 and the problem will remain as actual in the following years. For now, we will list the top eight of consolidation loans in the United States and explain why they occupy their high positions.
What is student loan consolidation?
Before listing the companies, it is vital to explain what consolidation actually stands for. As we mentioned earlier, this is not a commonly known fact. Most people think of debt consolidation loans as some sort of refinancing, which is not valid. Consolidating your student loans means combining all of your loans into one. This applies to both federal and private student loans, and it can have great benefits. First of all, you won’t worry about the payments anymore, because you will only have one monthly fee. On the same note, proof shows that most student loan rates and fees drop after consolidating them. Second of all, you won’t have to worry about paperwork anymore, because you will get an overall file and documentation.
We all know how annoying it is to search through tens of paper sheets only to find one. This aspect is crucial because most of these files are crucial even after you pay off your loan. You will need your paperwork for check-ups and other federal matters. Therefore, student loan consolidation works for your advantage. You simplify the payment process and also decrease some of your fees and repaying rates. However, we highly advise you to work closely with an expert that will tell you everything you need to know and more. Following, these are the best eight consolidation loans of 2019, that you can trust and rely on.
1. SoFi Debt Consolidation Loans
This company is best suited for student debt consolidation because they started with that, and they have experience in this field. Therefore, SoFi’s criteria profoundly relate to the borrower’s educational background, so they require a 680 credit score. Their loan rates go from 6% percent to 16.24% percent depending on your loan and contract. You can borrow money on a two year or seven-year length, and from a student’s point of view, you can quickly repay it. Most students take around ten years to pay their student loan debt fully, but if you choose an excellent loaner like this one, it may take less. This particular loaning company doesn’t charge late fees, prepayment or no originations. Experts say that they can be the lowest lender on the market, depending on your credit score.
2. Marcus by Goldman Sachs
This is a new Wall Street bank, ready to conquer it all. Although you can select their debt consolidation loans for merely anything, they suit student loans as well. They are on our list because of their competitive rates and no charge policy. They don’t charge late fees, prepayments, and no origins, and this is excellent news for students. Their interest rates range from 5.99% percent to 24.99% percent. You will soon observe that this is a typical pattern among top-rated lenders. Keep this information in mind when you research by yourself because it can come in handy. Marcus by Goldman Sachs requires a minimum credit score of 660, and you can borrow up to 40,000$ dollars. However, their policy might limit people with poor credit scores, so make sure you read every piece of information.
3. OneMain Financial
This company is excellent for anyone interested in loans. We are saying this because they don’t require a minimum credit, and this might be their highlight. OneMain Financial suits borrowers with poor credit as well, but they charge higher rates. Their rates start at 16.05% percent, and they can go as high as 35.99% percent. They are quite high, but because of the company’s credit policy, a lot of people choose this lender.
4. Best Egg Debt Consolidation Loans
We presented our pick for low credits; now we are showing you the company with the lowest interest rates. Debt consolidation loans should offer you reasonable prices because you just combined multiple loans. Best Egg offers fixed rates from 5.99% percent to 29.99% percent. This company is excellent for high credit borrowers, and they require a 640 credit score. Although they charge fees, they don’t cost a lot of money. Their prices start from 0.99% percent to 5.99% percent out of the total amount. Also, you can get consolidated in under one day.
5. Discover Personal Loans
This company is great for borrowers with high credit scores. They don’t charge fees and taxes, and they offer competitive interest rates. Their rates run from 6.99% percent to 24.99% percent, which is more than acceptable for any borrower. They accept customers with a 660 credit score or even higher. If you do qualify, partnering up with this company will save you a lot of money in the long run.
6. Freedom Plus Consolidation Loans
Freedom Plus agrees on co-signers for debt consolidation loans. This is a piece of excellent news for students because you can get support from your family or a close friend. This process will bring a lower interest rate, which starts from 5.99% percent. They don’t charge a lot for fees and accept people with a 640 overall credit score. You can get a five year loan period, which sounds suitable for any student loan.
7. Lending Club
Lending Club is actually a marketplace loan, and they require a 600 credit score. You can get as much as 40,000$ dollars in one loan with a 6.95% percent minimum interest rate. Even though they are a particular type of lender, this company has excellent reviews and a 38$ billions of dollars in loan funding as a backup.
As their name states, you have a high chance of paying off your debt with this company. Their interest rates start at 5.99% percent with a fee of 2% to 5% percent based on your credit. You qualify with a 640 credit score, and you can get up to 35,000$ dollars.
9. Student Loans Resolved
Debt consolidation loans might seem tricky at first glance, especially if you are a student. You could try to take care of them by yourself, but that would imply so much time and effort. Therefore, we came up with our own debt consolidation solution: Student Loans Resolved. This company specializes in federal and private student loan solutions. They are here to help you with tips and tricks, professional advice, and expertise. Besides, they even offer free first consultations because overall availability is a must.
Student Loans Resolved works with a wide range of student aid programs such as forgiveness, closed school discharges, and consolidation. They also offer a big selection of repayment plans, all tested by experts and approved by government officials. We believe that students should focus on their education instead of stressing over their college loans. And that’s why we strongly encourage our readers to seek professional help and guidance regarding debt consolidation loans. Student Loans Resolved is a reliable company offering plenty of services. They are eager to help you and make your college years some of the best of your life. Browse their website or contact Student Loans Resolved for a free assessment.