Many college graduates find it difficult to manage multiple student loan payments, and some can barely afford to make the minimum monthly payments. If you find yourself in this situation, you may be considering consolidating your student loans. Some may choose a personal loan or a debt consolidation loan to consolidate their student loan debt, although some lenders do offer consolidation services specific to student loan debt.
Federal Student Loans
There are a limited number of lenders who are permitted to service federal student loan debt, and PNC Bank is not one of them, although they do offer consolidation of private student loan debts and other debt including credit cards and auto loans. If you are looking to consolidate your federal student loans, you will have to find a lender who is permitted to offer Direct Consolidation Loans, which only apply to federal student loans.
PNC Private Loan Consolidation Options
If you would like to consolidate your private student loans, then you may want to consider a debt consolidation loan or a personal loan from PNC Bank, although if you are looking for an unsecured loan (that does not use your home or other assets as collateral), the maximum loan amount is $25,000. If you have less than $25,000 in private student loan debt, then this may be a good option to consider to lump your monthly payments into one and lower your monthly payment amount.
PNC loans typically have fixed interest rates, and most do not have any other associated loan or origination fees. Although the interest rate may vary depending on the state you live in, you can expect a minimum annual percent rate (APR) of between 8% and 9%, although they may reach up to 20% or higher, depending on your credit score.
Finding the Best Option
If you are struggling to make the minimum monthly payments on your student loans, then consolidation is a good option. The key is to find a legitimate lender who offers the services that will be the most beneficial to your specific financial situation. You will also want to make sure the interest rate of the consolidation loan is similar to or lower than the interest rate you are currently being charged on your student loans. A higher interest rate will result in a significant increase in the amount you will end up paying over time.