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US Center For Debt Relief, Inc.

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  • Debt Settlement
    • What is it?
    • How does it Work?
    • The Benefits
    • Effects on your credit
  • Private Student Loans
    • How is it different from Federal?
    • How does it work?
    • The benefits
  • About Us
  • Client Debt Relief

Private Student Loans

Private Student Loans
  • How is it different from Federal?
  • How does it work?
  • The benefits

Private student loans can have variable interest rates, some greater than 18%. A variable rate may substantially increase the total amount you repay.

How Is It Different From Federal?

Federal student loans include many benefits (such as fixed interest rates and income-driven repayment plans) not typically offered with private loans. In contrast, private loans are generally more expensive than federal student loans.

PROS

- You can earn interest rate discounts if you qualify
- You can refinance in the future with a private consolidation loan
- There are no prepayment penalties

CONS

- Interest may not be tax deductible
- You may need a cosigner
- Private student loans may not offer forbearance or deferment

How Does It Work?

A private student loan can cover up to your school’s full cost of attendance, less other aid you’ve received. Many private student loan lenders offer a cosigner release option that enables you to remove the cosigner from the loan if you meet the lender’s requirements.

The Benefits

Lowering your interest rate with a private student loan consolidation, can lessen your financial strain now. Plus, you are more likely to have funds available for your next big purchase such as buying a home or paying for a wedding. For instance, a loan consolidation could cut your monthly payments in half — someone with a student loan debt of $10,000 and a consolidated loan rate of 6% for 15 years, could bring $170 monthly payments down to $84.69.

Many students with little steady income and/or credit history must involve a cosigner to qualify for a loan. Consolidating to release your co-signer can have long-term benefits for that individuals’ credit score and financial stress while also, possibly, enhancing your relationship with the person who was kind enough to share your loan debt.

Loan consolidation can help borrowers struggling with large monthly payments or high interest rates avoid serious financial repercussions of going into default.

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Is Private Student Loan Consolidation an option for you? Find out now.

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DEBT SETTLEMENT

  • What is it?
  • How does it Work?
  • The Benefits
  • Effects on your credit

PRIVATE STUDENT LOANS

  • How is it different from Federal?
  • How does it work?
  • The benefits

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*Clients who make all their monthly program payments pay approximately 50% of their enrolled balance before fees, or 68% to 75% including fees, over 24 to 48 months. Not all clients are able to complete our program for various reasons, including their ability to save sufficient funds. Our estimates are based on prior results, which will vary depending on your specific circumstances. We do not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Our service is not available in all states and our fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution. Read and understand all program materials prior to enrollment. The use of debt settlement services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements we obtain on your behalf resolve the entire account, including all accrued fees and interest. C.P.D. Reg. No. T.S.12-03825