By refinancing your existing student loans you may see a dramatic reduction in your interest rate – even a few points.With only a few exceptions, it is generally advisable for all student debt holders to at least explore a refinancing scenario, especially since getting your rate through Lend Key’s platform will have no impact on your credit score.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.
Debt settlement companies help borrowers understand what lenders typically require to settle and often use the leverage of having many clients who want to settle and then settle in bulk to get the best deal for their clients.
In most cases your old loans were probably held by other banks - not the one you're already with.
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.
A lender will generally look for 3 things when considering whether you can re-finance: For those borrowers who are creditworthy, this can be a great option as interest rates are currently very low with many banks offering rates under 3% for private student loan consolidations.
If you have a large student loan balance this can save you thousands of dollars and reduce your payment.