Consolidating private student loans without cosigner

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The credit criteria are often very strict because the lenders are aware that the cosigner may have been secretly helping the primary borrower make his or her monthly loan payments.The last thing the lender wants to do is have the primary borrower default a few months after the cosigner release is effective.Private consolidation loans are offered by banks and credit unions (not the Federal government) and are credit-based and generally require strong credit to be obtained.Most people take advantage of the Federal programs because they are having trouble managing their debt burden and a lower payment will help.

But that reality has changed now that credit unions have moved into the market.If the borrower qualifies for the private consolidation loan on his or her own, without a cosigner, consolidating the private student loans effectively releases the cosigner from his or her obligation. However, interest rates may be higher without a cosigner.Borrowers who have been unable to qualify for cosigner release with their current lender may be able to use a private consolidation loan to obtain something similar to a cosigner release.They are now offering borrowers a way to consolidate their private loans at rates as low as 4.75 percent.With the average age of credit union members at 50, one powerful motivator of the non-profit credit unions is to attract younger customers, according to Ken O'Connor, the director of student advocacy at cu Student

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