Advice on Student Loan Consolidation - The Bills.com Blog

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Advice on Student Loan Consolidation

Monday, Aug 18, 2008

Question: After getting about $10,000.00 in financial aid from my school (fed work study, fed perkins loan, and a fed subsidized Stafford Loan, I have about $36,000 left to pay. Should I take a private loan out for say $15,000 out and get my parents to take out a Federal Plus Loan out for the balance? I'm a student with no real credit history and my parents don't have great credit. Any advice as to how I should go about borrowing the $?

Answer: You should always exhaust your federal loan options first. Federal student loans are issued at lower interest rates with better repayment terms and interest deferments. Once this avenue has been exhausted, you should look into
private loans to finance any remaining needs. This may be a mute point for you, though. If you and your parents do not have great credit and credit history, you will be hard pressed to find a lender willing to help you. Private student loans are issued by private banks with very strict credit guidelines (currently due
to the credit crisis). Aside from credit, the lenders will also look at the borrowers income and other possible variables.

Bills.com also offers a wealth of information about student loans , available on the loans section of our website.

I hope the information provided helps you Find. Learn. Save!

Best,
Bill
www.bills.com/blog/

Also, make sure to get a free financial health check-up with Bills IQ!

User Comments

1. Posted by LaToya Trice on Monday 6th July 2009 17:31

i need help with school loan i'm done with school and i would like to pay the loans off ASAP

2. Posted by Bill on Tuesday 7th July 2009 12:00

Readers, what strategies and tactics did you use to pay off your student loans ahead of schedule?

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