Top 5 Loan Consolidation Companies That Help Students in Debt • SLR

If you are a student who is burdened by multiple loan payments, debt consolidation may be a way to ease that burden with a straightforward repayment plan. Debt consolidation offers a convenient solution for borrowers to collectively pay-off their student debt with one single monthly payment. In doing so, students can manage their money more effectively and reduce their interest in various debt payments. Based on eligibility requirements, best loan consolidation companies can ease this process for students.

Borrowers can use debt consolidation as a great tool to deal with their student loan debts. The main thing is to have the right approach toward student loan consolidation. In doing so, you will end up saving hundreds of dollars. What’s more, you will minimize the hassle of having to make multiple payments every month. 

Debt consolidation is fundamentally different from other types of loans, like Personal Loans (PLs). The primary benefit that debt consolidation has to offer is to improve a borrower’s credit score. If the interest on the loan is very high, this may result in the student eventually paying a lot higher than the borrowed amount. Nonetheless, in the long run, the borrower could save considerably depending on various factors. What is essential is that students should be honest about their financial situation when searching for debt consolidation loans. 

Factors That Impact Monthly Payment of Loan Consolidation

Individuals with good credit history are eligible for a low annual percentage rate (APR), which plays a pivotal role in bringing down the interest. Borrowers with good credit history can expect an APR between 6% and 18%. Factors that impact APR could boil down to monthly income and loan amount/tenure. If you, unfortunately, have a negative credit history, there is a high chance that your APR will be a lot higher. If you, unfortunately, don’t qualify for student loan consolidation, you should consider repairing your credit before you apply again.

In most cases, after the consolidation of your loan, your overall monthly payments come down. However, in some cases, you may need to pay more overall. This situation may arise when you choose a longer repayment duration.

Example:

You have a $10.000 student loan with 20% APR for three years. At the same time, you also have a $5000 student loan with 30% APR for two years. You need to pay $1.362 /month for two years. In the final year, you will pay $706 /month. If you decide to consolidate loans at 18% APR for six years, in the end, you will pay $44.585.

The example illustrates the total payment to be $3398 more than the first one. In the second case, the monthly payment will be considerably lower. 

The Best Student Loan Consolidation Companies

best loan consolidation companiesMany lender companies help students to consolidate their student loans. In the rest of the article, we are going to talk about five of these successful student loan consolidation companies. We collected the companies based on their repayment methods, fees, eligibility requirements, useful features, and loan terms. You can use the list below to find the right company that matches your needs and credit background. 

#1 Discover

Discover provides its customers with different kinds of services. Debt consolidation service stands out among other services. It is one of the best loan consolidation companies which offers payment and online banking services. If you want to manage your student loan more wisely and save money from your debt, you could get help from Discover. The company’s professional team will not only help you in debt consolidation but also in building your credit rating. Debt consolidation loan of Discover does not include any closing costs, loan origination fees, or prepayment penalties. It means if you are paying on time, you will not face any additional charges associated with your student loan consolidation. Generally, you can get an unsecured debt consolidation of up to $35.000 loans. However, secured debt consolidation for loans up to $200.000 is also possible. But it depends on the value of your property. 

The most advantageous part is that Discover can pay your creditors to eliminate the stress of monthly repayment. Once you consolidate student loans and you fix them to a single monthly payment, you will not worry about any additional charges or fees. Additionally, your account will be available to you via your mobile phone and desktop computer. You can easily manage it online. For example, you can review the account balance, your payments whenever you have an internet connection. It means that you have 24/7 access to your account. 

As one of the best loan consolidation companies, Discover provides debt consolidation with a fixed rate, which helps you to manage your student loans effectively and efficiently. You gain more control over your finances without having additional application fees. The company has been working since the1980s.  

Quality of product

Discover aims to help its customers to change the way they use their money. It tries to make its customers gain good financial habits. Therefore, you can get lots of tools to be on the right track. For example, there is a payment program that you can quickly sign up for free. This program will withdraw the monthly repayment from your savings account. As a result, you do not miss payment deadlines. Also, if you want to pay your debt quicker, you can set up the program to withdraw more amount. 

We are sure that you will get personalized service from Discover. There will be no extra hidden fees or payments. And all the procedures are straightforward. You will get tools that not only help you to manage your student debt consolidation. These tools have particular importance for you to build your credit rating. Overall, if you are searching for the best loan consolidation companies that provide stress-free service, you can choose Discover.

#2 Marcus by Goldman Sachs

best loan consolidation companiesAnother one of the best loan consolidation companies we would like to talk about is Marcus by Goldman Sachs. The company offers loans for consolidation. You could get loans up to $40.000. The best part of debt consolidation by Marcus is that you do not get origination fees. In case of a good credit history, there is a high chance that you will get the best interest rate. Even if you do not have excellent credit, you still can get a loan, but it will probably be with a high-interest rate. The company has an easy to use online platform. Before the application, you can get information about the products with the help of a pre-application calculator. There will be different options for borrowers with good credit standing. 

Keep in mind that the interest rate also depends on the length of time you pay the money back. The application process is straightforward. You can apply online through the website. Whenever you have difficulty or problem, you could ask help from 7/24 available customer support. If you have issues, you could call and get immediate help. Debt consolidation from Marcus is beneficial, especially for borrowers who have several small loans. The APR percentage could vary between 5.99% and 28.99%. If you want a low-interest rate, you need to have good credit. 

On their website, there is an eligibility checker where you can go and check the loan options. After adding all the required information, the checker will display whether there are suitable loans for your case. If you find the right loan, then you can continue and apply online for it. If you have any difficulties, do not hesitate to call customer support. 

Usability of website

Another advantage is that the company has made every step of the pre and after the application process easy. It has easy to use website and eligibility calculator. The company will not surprise you with additional hidden fees. However, you should still need to make timely payments to create a good credit history. Make sure that you pay off the loans according to your schedule.

Additionally, the application process for Marcus’s debt consolidation is straightforward. You can complete all the steps online without leaving your home. If the company approves your application, you will get the loan very quickly. At the same time, if you have questions or want to talk personally, there is a phone call option, as well.  

The transparent fee structure will help you to manage your budget effectively. Because as we have mentioned earlier, there will be no additional late payment or origination fees. Marcus offers only fixed terms and rates. It means if you make timely payments and do not miss the payment deadline, you will not face a single problem. The only disadvantage for you could be the loan amount. Loans by Marcus do not exceed $40.000. However, reasonable interest rates make the company one of the best loan consolidation companies. Especially, Debt consolidation by Marcus could be beneficial for those who have good credit. If you want to take loans from a reliable company, then Marcus by Goldman Sachs will be an excellent option to consider. 

#3 InCharge Debt Solutions

A U.S based company called InCharge is another successful company that aims to help borrowers to manage their finances effectively. You could get both secured and unsecured debt consolidation services for that nonprofit company. The main reason people choose InCharge Debt Solutions is credit card consolidation. The company tries to help all its customers to realize the responsibility of managing their finances and card credits. If you choose to work with that company, they will help you to gain good financial habits. It will help you to continue with healthy finances when you finish paying off your debt consolidation. Once you choose to keep your debt consolidation loan with InCharge, you stop handling lots of payment deadlines. More importantly, the interest rate that you will pay to InCharge is lower than a mixture of credit, store, or gas cards. 

Quality of Product

student loan application formInCharge will support you in managing your finances more professionally. After paying your debt consolidation off, you will have knowledge and understanding of how to avoid financial mistakes. Using their website, you can sign up quickly for your debt account. Whenever you have an internet connection, within seconds, you can enter your account, make or review your payments. The online portal will be accessible for 7/24 via mobile phones, desktop, and tablets. It demonstrates your payment schedule and gives you control over your finance. 

From their first day, the company has helped its clients to consolidate about $3 million in debt. InCharge has been working for long years. Therefore, it is one of the best loan consolidation companies for borrowers who are struggling to pay off their loans. If you want to pay your loan quicker, you can choose larger payments. 

The company has gained an excellent reputation over the years. It is famous for the nonprofit debt consolidation loans and educational services for its clients. They are proud to offer you personalized services that help you to gain financial stability. 

#4 Avant

The next company we would like to mention is Avant. Applying for loans is a natural process when you choose this company. The company provides tools for its customers to keep track of their payments and manage their finances. But there is one huge advantage which attracts most borrowers. You can make overpayments without getting penalties by Avant.

Additionally, you will not get any balloon payments while closing your account. It means if you male your payments on time, the company will not surprise you with additional fees. Note that there is no physical branch that you could get a benefit. However, it is elementary and straightforward to contact the right department and ask your questions. 

The application process is easy and can be online through their website. Before applying, you could check your eligibility using an online tool. Once you complete the first step, you can continue and apply for student debt consolidation. Debt consolidation by Avant comes with a fixed rate. It means each month will have them fixed and predefined payment. You will know exactly how much you need to pay. 

Avant debt consolidation features

Avant allows its customers to combine multiple debts and make them one manageable monthly payment. The only thing you will do is to pay the exact amount to Avant on time. Your company will do the rest for you. Also, if you do not have a good credit score, the company provides you an easy way to know whether you could be eligible for the consolidation. This tool is an eligibility checker, which helps you to see if you could be the right candidate for debt consolidation. If the result you get from that eligibility tool is positive, you can apply for debt consolidation. You will get the application response quickly and receive the loan the next day. 

#5 LightStream

happy studentsLightStream is one of the best loan consolidation companies that offer competitive rates for its customers. It is the best company for those who want to get cash in a short time to pat their wide range of expenses. It could be a medical, car, or other costs. As in different companies, LightStream also provides an online application. If you do not prefer the online application process, you could use a phone call to apply for debt consolidation. If you get a positive application response, you could choose various terms depending on your plans.

You will not get a late payment or origination fee for the loans you take from LightStream. The company possesses a very transparent and straightforward pricing policy. Like Avant, LightStream also does not apply overpayments for the loans. It means there will be no additional late payment fees. However, the website does not include any eligibility checker tool. Therefore, you need to check your credit against the company’s requirements before applying. At the same time, meeting all the elements does not indicate that you will get the debt consolidation. The maximum amount you could get from LightStream is $100.000. As you can see, it is a considerable amount when you compare it to other best loan consolidation companies. 

Final Thoughts

Debt consolidation is an excellent choice if you want to get rid of student loans. The right consolidation method will allow you to have control over your finances and to pay off your student loan at a low-interest rate. If you are not sure where to begin, contact Student Loans Resolved, one of the best loan consolidation companies, to get a free consultation. Our student debt advisors and financial experts are ready to help you become debt-free.