Pros cons consolidating your debt
In addition to refinancing student loans and parent PLUS loans, the company offers undergraduate and graduate school loans.It partners with Pencils of Promise, an education nonprofit, to fund the education of a child in the developing world each time it funds a new student loan in the U. Best Features: Common Bond allows qualified borrowers to release a co-signer, and children can refinance parent PLUS loans into their name.This guide provides an in-depth explanation of the differences between federal loan consolidation and private loan refinancing, the pros and cons of each and insight into which options are best for different situations. News compared private lenders to come up with recommendations for different kinds of borrowers.There are a variety of private lenders that offer student loan refinancing, each with different potential interest rates, loan terms and features. When you consolidate your student loans, you essentially combine multiple loans into one.To facilitate the consolidation, a lender will pay off your current loans and issue you a new loan for the total amount you owe.This type of consolidation won’t save you money on interest, but it can make it easier to manage your loans with a single payment each month.
If you’re consolidating loans that are in a grace period, you can ask the servicer to delay processing your request. Once you’ve filled in all the required sections, you’ll have to sign and submit the application.While both options involve combining multiple loans into one, private loan consolidation is generally referred to as refinancing.This is because you’ll finance the new student loan based on a variety of factors, including your income, debts, employment and credit.When you refinance your loan, you can choose a five-, seven-, 10-, 15- or 20-year term.Common Bond will match your federal loan deferment period if you graduated the same year you apply and your loans are currently in grace period deferment.