For decades, college students have used student loans to help them pay for their college education. In many cases, students were taking out loans that were worth tens of thousands of dollars. Over the course of a college career, these loans add up, and after graduation, banks require borrowers to start making payments. Newly graduated college students often have payments in excess of $1,000 per month and struggle to make ends meet with entry level jobs.
The following five banks can help consolidate student loan debt for both new graduates and consumers who have been making payments for a long time:
SoFi is relatively new to the student loan market. This company is widely becoming one of the most popular loan student loan consolidation specialists because they offer superior customer service, low interest rates and can consolidate loans for students from both private and government lenders.
SoFi even offers a program that allows borrowers to temporarily pause payments if an unexpected life event occurs.
Earnest is an online student debt consolidation firm that works with borrowers who have taken loans out from the government and from private banking institutions. The application process is extremely easy and allows borrowers to choose how much they want to pay each month, as long as it is a reasonable amount. Students who use Earnest have saved tens of thousands of dollars in interest.
Lendkey offers student loan consolidation help in the form of non-profit institutions like credit unions and local banks. When a student or graduate applies online, their application is vetted and sent to the appropriate lender for approval and contract finalization.
Lendkey offers consolidation programs that are free from hidden fees and cost less than traditional bank loans.
4. Citizens Bank
Citizens Bank offers extremely low rates for student debt consolidation. On average, borrowers save $137 per month in interest and payments when using Citizens Bank. Customers can choose from various repayment terms, including 5 years, 10 years and 15 years that better fit their budget.
Other consolidation loan discounts offered by Citizens Bank includes automatic payment discounts and loyalty discounts.
5. DRB Bank
DRB Bank is a major financial institution that saves students an average of $20,000 in fees, interest and student loan payments. The bank offers up to 100 percent refinancing for all outstanding student loan debt and do not charge origination fees or prepayment penalties.
DRB Bank also offers unemployment assistance to borrowers who lose their jobs. These customers will have the opportunity to participate in short term forbearance and can have payment plans temporarily paused.