How to Consolidate Student Loans with a Home Equity Line of Credit (HELOC)

Interested in reducing your monthly loan payments, or wondering if you could be paying a lower interest rate on your outstanding debt? If you’re interested in student loan consolidation and you own a home, you may want to consider a Home Equity Line of Credit (HELOC) for debt consolidation.

Using a HELOC for student loan consolidation may be a good choice for you if you are able to get a lower interest rate on your loans over time. Additionally, unlike some other loans for debt consolidation there are potential tax benefits1, and a Santander HELOC features no application fee, no appraisal fee, and no closing costs.2

Additionally, you can choose from two monthly payment options: interest only or principal + interest.2 Plus, our fixed rate lock option allows you to set up predictable monthly payments by converting all or a portion of your outstanding balance to a fixed rate loan without losing access to additional funds that you don't choose to convert, up to your approved credit limit.2

Learn More About How to Get a Home Equity Line of Credit

 
 
 
 

Benefits of Using a HELOC for Debt Consolidation

Budget Friendly

No application or appraisal fees, no closing costs, and you can enjoy potential HELOC tax benefits: the interest you pay may be deductible.1

Competitive Terms

Santander Bank offers competitive rates plus you’ll qualify for a rate discount if you set up automatic payments from any Santander Bank checking account2.

Repayment Flexibility

Choose between principal and interest or interest-only payments as needed. You can also speak with a Santander Bank representative about Fixed Rate Lock Options on outstanding balances.2

Is Using a HELOC for Student Loan
Consolidation Right for You?

Consolidating debt is beneficial if you’re paying less interest expense over time.

Ready to get started with a Home Equity Line of Credit?

Call a Santander Loan Specialist at 1.877.726.6849

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1Consult a tax advisor.

2Rates: Rates: To get the Home Equity Line of Credit (Line) Fixed-Rate Introductory Annual Percentage Rate (APR) and variable rate APR shown, payments must be automatically deducted (ePay) from a Santander checking account. The Introductory APR will apply only during the first six (6) billing cycles after your Line is opened. Thereafter, the APR for any existing balance or future advances will convert to the applicable variable rate APR. This APR may vary monthly and is based on the U.S. Prime Rate published in the Money Rates table of The Wall Street Journal on the first business day of the calendar month. The variable APR that you will receive will range between Prime minus 0.50 percentage points (currently 3.25% APR) and Prime plus 3.00 percentage points (currently 6.75% APR), and will depend on the following factors: amount of credit limit received, lien position, location of pledged property, and ePay election. If ePay is discontinued, the APR will increase by 0.25 percentage points. The Line must be in a first or second lien, secured by your 1-4 family primary residence located in MA, RI, CT, NH, NJ, NY, PA, DE, ME, VT, or DC, and total mortgage loans to be secured by this property must not exceed 80.00%. Line amounts must be between $10,000 and $750,000. Other rates and terms apply to investment properties and loan-to-value ratios up to 89.99%. The APR will never be higher than 18.00%.

Fees: There is a $450 termination fee if you close the Line within the first 36 months of account opening. If your property is located in New York, the Bank will pay the mortgage tax at closing on your behalf, however, it must be reimbursed if the Line is closed within 36 months of account opening. An annual fee, if any will be charged during the draw period beginning in the 13th month after the account is opened and each year thereafter on the anniversary date. The amount of the annual fee will be $0, $25, or $50 based on the type of deposit account you have with Santander at the time the fee is assessed. Fixed-Rate Lock Option fee is $50. Balances you choose to lock in at a fixed rate of interest must be repaid in substantially equal monthly payments of both principal and interest.

General Information: If your home is on the market, other rates and terms are available. $175 fee applies if your property is held in trust. Property insurance is required. Flood insurance may be required. Rates and terms are accurate as of 1/3/17, based on a current Prime Rate of 3.75% and are subject to change. Lines subject to approval.

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