You can see if your bank or credit union is able to provide you with a debt consolidation loan.
Banks and credit unions are typically only willing to lend people around 10% of their net worth (your assets minus your debts) on an unsecured basis.
Read the other posts in the series here—and get all the info you need to make intelligent decisions about your student loans.
And while you’re at it, check out So Fi’s new Student Loan Debt Navigator tool to assess your student loan repayment options. With prevailing interest rates at historic lows, some private lenders offer rates that are significantly better than a high-rate federal loan.
It often involves a secured loan against an asset that serves as collateral, which is most, commonly a house (in this case a mortgage is secured against the house.) The risk to the lender is reduced so the interest rate offered is lower.
Fixed rates ranging from 5.9% to 25.9% for loans, with an average rate of 13.44% for loans in the last 12 months ending May 15, 2016.
Using one loan to consolidate your debt can solve your problems.
When you take loans from many lenders, you have multiple debts. This also increases the risk of defaults and you have additional pressure of repayments.
This is often the reason that people cite when they say you shouldn’t combine federal and private loans.
But before you dismiss the idea of refinancing, you should first take a look to see if any of these benefits apply to you.