Expert: Les Thomas - 10/27/2011

Question
I am going to owe a lot in loans once I graduate, especially in private loans. I was wondering if I am able to take out a loan from a lender that has a better interest rate/payment options to pay off my current student loans? For example, take out a loan from say a bank to pay off the Parent PLUS Loans. Is this possible?

Answer
Josh,

The answer to your questions is YES!  However... it's going to depend on your credit rating, and the lender.  If a Bank or Credit Union allows for a consolidation loan... make sure the interest rates are favorable for this.  You wouldn't want to end up paying off a loan that has a 3% interest rate - just to consolidate it into a 6% loan.  Also take into consideration the length of the loans you currently have, versus the length of the consolidation loan.

I really wish I would have been able to help you back when you were first entering College.  The chances of you having so many loans would have drastically decreased.  Congratulations on your upcoming graduation... and if you need anything else...make sure to let me know.

All the best - Les