If you are looking to consolidate your student loan debt, it is important to understand all of your options. Unfortunately, not all information on the internet is accurate, so it will benefit you to do a little research before you make a final decision for consolidation. Some websites “review” different financial institutions and the consolidation loans they may offer, but these sites are not always correct. You should contact a lender directly to get the details of any consolidation options they may offer.
Consolidating Your Debts
Chase does have consolidation options, but they are not necessarily geared specifically toward student loan debt, although some or all of those debts may be included in a debt consolidation, depending on the specific student loan debt you owe. In most cases, any private student loans can be consolidation. Federal loans may or may not be included, so you will need to contact Chase to determine if your federal student loans qualify for consolidation.
Home Equity Debt Consolidation
The only debt consolidation option listed on the Chase Bank website is a home equity consolidation loan. If you don’t own a home, you will not be eligible for this type of debt consolidation. The website offers an easy-to-use debt consolidation calculator which does include student loan debts, and other debts such as credit cards, auto loans and personal loans.
With a home equity debt consolidation loan, you will typically receive a line of credit so you can pay off your other debts. You will then make one monthly payment to the lender, instead of making a payment to each of your creditors. Your house is used as collateral, so if you default on the loan, the bank can assume ownership of your home. This is a very serious consequence, so if you are considering a home equity loan, be sure to have a plan to repay the loan and remain current on your monthly payments.
Explore All Options
A home equity loan may not be feasible for many people looking to consolidate their student loan debts, but if you own a home, you may want to consider this option, because home equity loans tend to have low interest rates, even if you don’t have a high credit score. If you don’t own a home, there are other lenders who may offer debt consolidation specific to student loans, so you may want to do a little more research to find the best option for you.