Contact a consolidation lender to obtain lower student loan interest rates.
Loan consolidation is an option available for individuals desiring to lower student loan interest rates. This process involves a consolidation lender negotiating a pay off agreement with your present lender and transferring your debt to the new consolidation agency. With this program, you will be able to acquire a lower interest rate, in addition to paying lower monthly student loan payments.
Instructions
1. Access the National Student Loan Data System's website to verify your outstanding student loan debt and current lenders (see Resources). You will be prompted to enter your social security number, the first two letters of your last name, your date of birth and PIN. You should have received a PIN when you applied for your federal student loans through the Department of Education. If you have lost or misplaced your PIN, access the Federal Student Aid Pin website and follow the on-screen directions (see Resources). Print a copy of your loan information for your personal records. Keep it handy when contacting lenders.
2. Contact your lender and inquire about options available to lower your student loan interest rate. Some lenders offer reduced interest rates for enrolling in automatic draft payments from your checking account, while others offer a lower monthly payment plan through loan consolidation.
3. Consolidating your student loans can lower your overall interest rate.
Consolidate your loans directly through the federal government or a private lender. Research different lenders and select a company that best matches your needs. A few benefits of consolidation is reducing the hassle of making payments to multiple lenders every month and lowering your overall interest rate.
4. Submit an application. Most lenders conveniently offer the documents online. You will be required to provide your contact information, personal references and a list of your student loans, including the lender's contact information, estimated pay off amount and account number. Download, complete and send the application electronically or through postal mail. Your new consolidation lender will work in conjunction with your previous lenders to pay off your debts and transfer the balances. After completion of this process, you will be required to sign a promissory note.
5. Read and sign your promissory note. Carefully review the new repayment amount, monthly repayment plan and interest rate. Pay your loan in a timely manner monthly. Some lenders even offer a loan-reduction rate after borrowers make a certain number of on-time payments.
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