Student Loan Consolidation Companies in the United States

Student loan consolidation a specialist business and yet, there are many student loan consolidation companies in the United States. It is therefore a hazardous task to identify the ‘best’ among them.

Nevertheless, this writer takes the risk of identifying three favorite online consolidators without in any way being dismissive of their competitors. However, before we look at three specific firms, let us look at some general guidelines for identifying the best student loan consolidators.

General guidelines of identifying good student loan consolidation companies:

• The best student loan companies don’t just consolidate. Rather, they provide added benefits such as consolidation during the grace period for recently-emerged graduates.
• They offer more than one repayment option. In the case of private student loans particularly, they offer a variety of permutations and combinations with other categories of loans since private loans are not governed by federal rules.
• It is also important to ensure that the consolidator you select is active in the wider financial market by way of consolidation of various types of debts. This wider engagement is important because it suggests they are aware of the bigger market dynamics; hence have wide knowledge of different options and interest rates possible.

Three selected consolidation companies: We briefly review three consolidators selected by this writer on the basis of interviews with people who have had their student loans consolidated and through an internet search. The research conducted was not comprehensive. The three firms selected by this writer are as follows:

Loan Approval Direct: This firm can consolidate student loans totaling as high as USD 125,000. In many cases, this firm has managed to reduce monthly installment by up to 60 per cent and bring interest rate down to 3 per cent. Loan Approval Direct consolidates both federal and private student loans though on different terms.

Next Student : This firm is recommended for first-time consolidation of student loans, both federal and private It is worth contacting this firm if you are out of school or if you are graduate within the next six months and if your loans are over USD15,000 without any default. Next Student has succeeded in reducing repayment installments by up to 60 per cent in many cases.

Credit.com : This firm provides free consolidation services with four repayment options. Candidates for consolidation should owe at least USD7,500 in federal student debt. Processing of applications is said to be quick with this firm. Visit this website and fill in the online application form to check out you eligibility for student loan consolidation.

Finally, as said above, the three firms named in this report enjoy a good reputation in the market of student loan consolidation though there surely are others in the market that are as good or even better. Whichever firm you select, the content of this report can serve as a benchmark to what constitutes a good student loan consolidation company.