Many college graduates find it challenging to manage multiple student loan payments, not to mention the struggle just to make the minimum monthly payments. If you are one of these graduates, then you may want to consider consolidating your student loan debt, which will eliminate the multiple payments and lower your monthly payment amount.
US Bank does not offer consolidation options for federal student loans, but they do have options for private student loan consolidation. If you are interested in consolidating your federal loans, you may want to research lenders who offer those consolidation options, although the options are limited. The Department of Education website is a great tool to use for federal student loan consolidation options.
Private Student Loan Consolidation
US Bank does offer consolidation loans for private student loans and other debts, such as credit cards or auto loans. The maximum loan amount is $25,000 with a fixed annual percentage rate (APR) beginning at 7.48%, although this may vary depending on your credit score. The lower your credit score, the higher your APR will be. The maximum loan term is 48 months, and you will be charged a loan fee. You can apply for a US Bank loan in-person or online, and the application process is quick and easy.
Other US Bank Consolidation options
US Bank also offers home equity consolidation loans, in addition to personal lines of credit, which differ slightly from a loan. Of course, you must own a home to qualify for a home equity loan, and this type of loan can be risky because your house is used as collateral. This means that if you default on the loan, the bank will take ownership of your house. A line of credit is similar to a loan, except you can use just the amount you need, so you may end up paying less over time in interest.
There are multiple lenders who offer consolidation loans, although few of them are permitted to consolidate federal student loans. If you have less than $25,000 in private student loan debt, then you may want to consider consolidating that debt with a US Bank consolidation loan.
The key to a successful consolidation is to get a lower interest rate than what you are currently being charged. Although you may still pay more over time because of the extended repayment period, the lower interest rate will reduce that amount and result in lower monthly payments.