In today’s economy, student loan debt is one of the biggest financial challenges facing young adults. According to the Federal Reserve, the total student debt in the United States has reached $1.56 trillion, making it the second largest consumer debt category, after mortgages. For many individuals, getting a private student loan consolidation is an effective way to manage their debt and make it more manageable.
Private student loan consolidation allows borrowers to combine multiple Student Loans into a single loan, often with a lower interest rate and a more manageable monthly payment. While there are many companies that offer student loan consolidation, it’s important to choose a reputable company that will work in your best interest. In this article, we will discuss the top 5 private student loan consolidation companies to consider in 2021.
1. SoFi
SoFi, short for Social Finance, is a well-established financial company that provides a wide range of financial products, including student loan refinancing and consolidation. SoFi offers fixed and variable interest rates, as well as a variety of repayment terms ranging from 5 to 20 years, allowing borrowers to find the best option for their specific financial situation. SoFi is known for its low interest rates and flexible repayment options, making it an attractive option for many borrowers.
Why SoFi is a Good Choice
SoFi is a good choice for student loan consolidation because of its competitive interest rates and flexible repayment terms. With a strong reputation and a commitment to customer service, SoFi is a top choice for many borrowers looking to consolidate their student loans.
2. Earnest
Earnest is another top private student loan consolidation company that offers competitive interest rates and flexible repayment terms. Earnest allows borrowers to choose their own monthly payment, which can be a particularly attractive feature for individuals looking to customize their repayment plan. Additionally, Earnest offers a variety of perks for borrowers, such as the ability to skip a payment once per year and the option to customize their loan terms.
Perks of Choosing Earnest
Earnest stands out for its ability to customize loan terms and its flexible repayment options. With the ability to skip a payment once per year, as well as the option to choose your own monthly payment, Earnest is a great choice for borrowers who want more control over their repayment plan.
3. CommonBond
CommonBond is a popular choice for student loan consolidation due to its competitive interest rates and borrower-friendly terms. CommonBond offers both fixed and variable interest rates, as well as a variety of repayment terms ranging from 5 to 20 years. Additionally, CommonBond stands out for its commitment to social responsibility, as it donates a portion of its profits to fund education for children in need around the world.
Social Responsibility
One of the main reasons why borrowers choose CommonBond is its dedication to social responsibility. By choosing CommonBond for student loan consolidation, borrowers can feel good knowing that a portion of their repayment is going towards funding education for children in need.
4. Citizens Bank
Citizens Bank is a well-established financial institution that offers competitive interest rates and flexible repayment terms for student loan consolidation. Citizens Bank allows borrowers to choose from fixed and variable interest rates, as well as a choice of repayment terms ranging from 5 to 20 years. Additionally, Citizens Bank offers a variety of perks for borrowers, such as the ability to release a cosigner after making 36 consecutive on-time payments.
Family-Friendly Perks
Citizens Bank is a top choice for student loan consolidation because of its family-friendly perks, such as the ability to release a cosigner after making 36 consecutive on-time payments. This feature can be particularly attractive for borrowers who want to remove their cosigners from their loan once they have established a strong credit history.
5. LendKey
LendKey is a unique private student loan consolidation company that connects borrowers with community banks and credit unions to provide competitive interest rates and borrower-friendly terms. LendKey offers both fixed and variable interest rates, as well as a variety of repayment terms ranging from 5 to 20 years. Additionally, LendKey stands out for its commitment to customer service, as it provides personalized support and guidance throughout the loan consolidation process.
Personalized Customer Support
LendKey is a top choice for student loan consolidation because of its commitment to personalized customer support and guidance throughout the loan consolidation process. By choosing LendKey, borrowers can feel confident knowing that they have a dedicated team to help them navigate the loan consolidation process.
In conclusion, choosing a reputable private student loan consolidation company is essential for managing student loan debt effectively. By considering the top 5 companies mentioned in this article – SoFi, Earnest, CommonBond, Citizens Bank, and LendKey – borrowers can find the best option for their specific financial situation. With competitive interest rates, flexible repayment terms, and borrower-friendly perks, these companies are leading the way in providing top-notch service for student loan consolidation in 2021.
Overall, it’s important to do thorough research and compare options before choosing a private student loan consolidation company. By considering factors such as interest rates, repayment terms, and borrower-friendly perks, borrowers can make an informed decision that will help them manage their student loan debt more effectively. With the right choice, borrowers can consolidate their student loans and take control of their financial future.
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