Following are three companies that provide Private School Loan Consolidation with remarkable features and benefits.
Wells Fargo
A Wells Fargo loan has an easy application process if compared to other loan consolidation providers. Wells Fargo loans are designed especially for students. These loans are focused towards first time borrowers and students who want to continue their education prior to being able to pay off their outstanding debts.
Eligible Students for the Wells Fargo Loan: To qualify for the Wells Fargo Loan program, the students must:
- Be enrolled at least half-time (sometime less) at an eligible school.
- Be enrolled in a program that Wells Fargo supports.
- Have a decent credit history (if you need a cosigner they too must have good credit).
- Be a US citizen or permanent resident (with proof).
Borrowing and Benefits:
- You can borrow the total cost of your education, up to $120,000, with the exception of all other financial aids.
- Temporary residents can borrow up to $25,000.
- There are no origination, disbursement or repayment fees.
- Low interest rates.
- Enroll online and receive percentage discounts for your interest rate.
- Make a certain number of consecutive payments and you become eligible for further cut down in interest rate.
- Cosigner can be released from their part of the contract after 24 consecutive on-time payments.
- Further interest rate cut down when you have payments taken directly from your bank account.
- Lower interest rate when you have Wells Fargo as your personal banker.
MELA (Maine Educational Loan Authority)
- Low, variable interest rate set annually.
- Same interest rate for all approved borrowers, regardless of credit.
- No application fee.
- Immediate interest rate reduction of 0.25% for automatic, electronic payments.
- Low guarantee fee (1%, 3% or 6%) based on past credit history.
- No penalty or fees for prepayment of any or all of the loan amount.
- Repayment terms up to 30 years, depending on loan amount.
- Minimum loan amount of $10,000.
- No aggregate loan limit for MELA loans; $125,000 aggregate loan limit for non-MELA loans.
- High quality, individualized customer service based in Maine.
Education Finance Partners:
Loan Amount:
- Minimum - $7,500
- Maximum - The total outstanding balance of all private student loans to be consolidated plus any accrued interest and fees due to the loan holders.
- Lifetime - $535,000.
Interest Rate:
The actual interest rate is determined by the borrower's credit history. The borrower can choose one of the following:
- Fixed rate as low as 8.66%.
- Variable rate as low as 6.86%.
Interest rate discounts:
0.25% interest rate cut down when monthly payments are automatically deducted from a checking or savings account
Fees: None
Borrower options:
- Single Borrower - Applicants with established credit history may qualify on their own.
- Borrower with cosigner - Applicants who fall below the minimum eligibility requirement can apply with a cosigner.
- Sponsor as Borrower – You can borrow on behalf of the original loan holder and take charge of the debt.
Deferral option:
- Borrowers continuing or re-entering qualified studies can defer payments for the in-school period for a maximum of 42 months (36 months plus a six-month grace period).
- Students must be in a degree-earning path.
- Borrowers can only apply for deferment when completing the initial loan application.
Repayment options:
- Standard - Make principal and interest payments on a fixed schedule for the life of the loan.
- Interest-only - Pay only interest for the first three years of your loan. For the remainder of the loan, pay principal and interest on a fixed payment schedule. This option is suitable if you anticipate greater income in the future.
Cosigner Release:
- After only 24 months of consecutive on-time payments. (The borrower must meet Education Finance Partners' minimum credit criteria).
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