Consolidating private student loan debt

15 Oct

Student loans are tough, and they present borrowers with heavy debt burdens after college.

But while there are a growing number of options available to consumers, most student loan forgiveness programs and other repayment plans are only available to those with federal student loans.

For instance, all our post originally said about Discover was that “Discover encourages struggling borrowers to call its ‘Repayment Assistance Department.'” We were vague because, well, Discover was vague too.

But times have changed and the student loan crisis, the media coverage surrounding it, and government intervention have worked to create an environment of improved transparency and increased options for borrowers.

If you don't have a lot of private student loan debt, you can wrap them up in an unsecured debt consolidation loan like those from Lending The only issue with the unsecured lenders is the limit of the loans is typically around ,000 or so.

That's often not enough to consolidate all of your loans.

Huffington Post Reader Question Dear Steve, I'm looking to consolidate private/government student loans.

I have a few several outstanding loans with both public and private entities from graduate school (Navient, Nelnet, Discover student loans).

If you are approved, the new lender will pay off the old loans on your behalf and roll that obligation into a single, new loan.Private consolidation loans are offered by banks and credit unions (not the Federal government) and are credit-based and generally require strong credit to be obtained.Most people take advantage of the Federal programs because they are having trouble managing their debt burden and a lower payment will help.Private loans represent only 10 percent of student loan debt, but that number — 0 billion – is still significant and, in many cases, even harder to pay back than federal student loans.Private loans usually carry a higher interest rate than federal loans and there are fewer relief options available when borrowers are in distressed situations.