Many people find themselves being burdened with piles of high-interest student loans after graduating from colleges. If you are looking for an easy way to consolidate your student debt, the solution is to get a personal loan that allow consolidation of your education cost. The following are the 3 best personal loans that you can use to consolidate your student debts.
Prosper is a P2P lending platform that provides $2,000 – $40,000 loan suitable for use on student debt consolidation. The lowest interest it offers is 6.95% and the maximum interest it charges is 35.99%. Every loan that Prosper issues will have an origination fee of 2.4% – 5%. It takes 1 – 3 days to fund the loan.
With Prosper, you can opt for a repayment term in between 3 – 5 years. You must have a minimum credit score of 640 if you want Prosper to approve your loan. They also require applicants to have at least 2 years of credit history and at least 50% of debt to income ratio. Prosper charges late fee for late payments.
Sofi is another p2p platform that offers $5,000 – $100,000 for student loan debt consolidation. The typical APR is 6% – 15% for both fixed and variable loans. There is no need to pay any origination or late fee. You must have a minimum credit score of 660 to qualify for Sofi loans. However, most borrowers at Sofi has a credit score of 700 and above.
It has no minimum income requirement but most borrowers receive an average annual income of more than $100,000. Sofi loan is backed by an unemployment protection program which allows you to suspend the loan repayment for up to 3 months at one time. The forbearance program allows you to do this for up to 12 months. You can opt in the forbearance program if you involuntarily lose your job, or a sudden big expenses arise for example medical fees.
3. Floss CU
Floss CU offers loans from $1,000 – $40,000 for consolidating student loans. Floss CU loan interest rate can be as low as 6.16%. Floss CU is more flexible compared to other online lenders as it allows borrowers to sign up as a joint application. Borrowers can also submit a payment modification plan in the event that they have problem meeting the deadline.
You need to have a minimum credit score of 600 to qualify for a Lending Club loan. They will also require you to have an established credit history in the past 2 years. You must possess a debt to income ratio of lesser than 40%. Lending Club is ideal for borrowers with good credit score.