student loan consolidation

student loan consolidation

LendKey Student Loans: An In-Depth Review

LendKey partners with a network of credit unions and community banks to give you the best rates and pricing to help you refinance your student loans and help you get out of debt faster. LendKey provides you with lower monthly payments and lower interest rates to consolidate your student loans into one monthly payment.

One key thing that makes LendKey stand out from the other lenders is how they use the smaller credit unions and community banks to offer lower interest rates. They have a high customer satisfaction level and strive to put people over profits. The customer service aspect of LendKey is phenomenal and has a longstanding reputation.

The LendKey Basics

The application process is very similar to any other online student loan consolidation lender. It only takes 2 minutes. First, you input all your basic personal information to kick off the application process. Then you tell all your loan information and where you went to school. Once submitted, it starts the credit check process which does a “soft hit” on your credit report to check your interest rates. By using LendKey, you will be connected with smaller credit unions and community banks to offer you the best interest rate possible to fund your loan. Without the overhead of advertising costs, the smaller lenders are able to pass along the savings to you.

What Are The LendKey Interest Rates?

The biggest advantage to using LendKey is the low interest rates. At the time of this writing, LendKey offers the lowest student loan refinancing interest rates starting at 2.49%. The fixed rates start at 3.15%. Fixed rates stay the same throughout the life of the loan. Variable rates can change depending on the current state of the market. Other factors that affect your interest rate include credit score and salary. With the national average federal student loan interest rate at 6%, you can definitely see why using a private loan lender can save you money and lower your monthly payment.

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How To Apply For Student Loan Refinancing with LendKey

1) Provide Personal Details

To start the application process, LendKey needs to gather some personal information. This includes Name, Address, Annual Income, School, Loan Amount & Type. Once you finish step one, you will submit you information and LendKey will do a “soft hit” to check your credit score.

2) See your options

After your credit score is retrieved, you will be presented with multiple offers that contain different rates and terms. Below is an example I got when I put in my information for $25,000 in federal student loans and $75,000 salary. Keep in mind, your interest rates will vary by salary, loan amount, credit score and possibly geographical location.

LendKey Student Loan Interest Rates

3) Choose your refinancing option

It’s now time to choose the student loan refinancing option that you would like to go with. Once you’ve decided on a loan term length and interest rate, make sure it’s a monthly payment that you can afford and not get yourself into a bind trying to make the payments. You still want to have money leftover for basic essentials.

4) Finalize the account

Once you have selected the loan refinancing option that you want, you will enter your social security number and email to create your account. LendKey then does a “hard hit” on your credit. They will then review all information again before confirming your loan and contact you with the details.

LendKey Student Loan Refinancing Pros

  • Over 300 credit unions and community banks
  • Longstanding customer satisfaction and personal service
  • Lowest variable interest rates starting at 2.49%
  • No origination fees
  • No prepay penalties
  • Unemployment protection up to 18 months

Frequently Asked Questions About LendKey

Below are some of the most frequently asked questions about LendKey. If you are looking for student loan refinancing and have specific questions about LendKey, please ask in our comment section below.

Does LendKey charge any refinancing fees?

LendKey does not charge any origination fees or service fees to use their service. Also, there are no prepayment penalties. The only costs involved are the monthly interest payments with the loan.

What is the maximum amount LendKey will refinance?

The minimum amount of student loans to refinance is $5,000 and the maximum is $300,000.

Do you get discounts for auto pay?

Most lenders offer a .25% discount on interest rates if you set up automatic payments. LendKey is no different and offers the same interest rate discount. For example, if you got approved for a 3% interest rate and signed up for automatic monthly payments, your interest rate would be 2.75%.

Final Thoughts

If you are looking to refinance federal loans, private loans, or both, then LendKey offers very competitive rates starting out at 2.49%. Using LendKey simplifies the student loan repayment process and helps to lower your monthly payments and save money. The average savings is over $16,000 by using LendKey. Are you drowning in student loan debt? LendKey could help you save thousands.

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Student Loan Consolidation Explained With Play-Doh

Do you need some basic information about how student loan consolidation works? And do you like to make things out of green Play-Doh? From FinancialAidPodcast.com, here’s a video that uses Play-Doh to demonstrate the basics of student loan consolidation:

Overall, I’d say this is pretty useful– and a pretty smart way– to use something as simple as Play-Doh to describe an idea that can confuse students quite a bit.

However, there’s one part of the loan consolidation picture the video more or less ignores– interest payments over the long term. The thing is, if you stretch out your Play-Doh (i.e. loan payments) over a longer period of time, you pay a lot more interest. The overall pile of green Play-Doh magically oozes to a larger and larger size, even as you slice off bit by bit at that compounding green Play-Doh pond thing once a month.

In other words, if it all possible, don’t spread your student loans out over longer periods of time, even if you consolidate your loans (which you can do without extending the payback period). Remember, when it comes to your green Real-Dough, you want to keep as much as possible.



Student Loan Consolidation 101

What does it mean to consolidate your student loans? Here’s a quick primer on this important financial aid topic.

student loansCollege students often take out more than one student loan to pay for college. This can result in multiple monthly payments and an awful lot of paperwork. To simplify the process, and to save money, students often choose to consolidate their student loans, which means they combine all of their loans and make one (usually lower) monthly payment on all of them. Often, loan consolidation allows students to pay the loans off over a longer period of time, which results in a lower monthly payment.

How do you go about consolidating your student loans? You work with a bank. For information about this process, visit the Federal Direct Consolidation Loans Information Center at the U.S. Department of Education website. Compared to many other kinds of loans, loan consolidation is actually fairly simple. In fact, there’s not even a credit check when you consolidate government loans.

Students can consolidate both U.S. government student loans and private student loans. However, most lends recommend that public and private loans should not be consolidated together.

Is a loan consolidation right for you? Talk to your lender. In most cases, consolidation makes sense, but there are a few situations in which this might not be the best idea. If you have a Perkins loan, for example, you will lose the benefits that come along with this loan if you consolidate.

In addition, if you do consolidate, try to avoid the temptation of getting a lengthy loan payment plan that takes many years to pay off. The low monthly payment may be very tempting– and depending on your financial situation, this may be a life saver. However, keep in mind that the longer you take to pay off a loan of any kind, the more you will pay in interest. If you can handle the higher monthly payments, do so, and pay off the loan as soon as possible.





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