College Loan Consolidation: 2012

Thursday, March 15, 2012

What The Student Consolidation Loans Offer

To make it simple, the best question to the student loans lenders is, what relief the new loan brings to your particular situation? Are the different loan options wise for you, or should you proceed with the present loans?

Consolidated Loans Will Bring And Take.

If you consolidate into one loan and lengthen the loan running time, you will pay more interests. Some loans, like Perkins, allows a student to not pay a part of the owed capital, if a student works a certain time as a teacher or in the public service.

If this student will consolidate, he will lose this benefit. Stafford loans grant a six months grace period, which means a payment free period after graduation. If you will consolidate you will lose this benefit. These two examples show, that the exact guidance from the expert is useful.

How To Start The Process?

The market is in the Internet, where the shopping is easy. But you can still ask the first quotes from the lenders, which borrowed you your student loans. The key thing is, that you ask the quotes with the same information from each single lender to make the comparison easy. Before you approach a candidate lender, make sure this company is reputable and long term vendor. The consolidated loan is always a long term commitment.

The Long Running Time Makes Small Benefits Big.

The question is about the accrued costs, like the interest rate. Think this for a while. The 30 year running time and a small difference in the rate! The saved or lost money can be substantial. Many lenders offer the same interest rates, but the different perks can form the difference. The list of perks can be creative. It can include borrower benefits and student loan payment reliefs after certain on time payments, for instance.

Ask About The Future Possible Changes.

If you get a fixed rate loan, what happens, if you want to pay it off with a one time payment. Or if you want to lengthen the loan running time? Are these options possible within the present terms? And are there other payment options, which makes the loan flexible for the future circumstances? For instance some lenders offer an option for an income related payment.

The Critical Time Right After Graduation.

Usually the graduates have some time until they get their first jobs after the graduation. Some lender grant grace periods, i.e. the six month times before the payments will start. If it seems, that your first job, or first salary, is far away, it is important to ask, what special terms you can get to manage over this period.

There are also other small questions, which are important. How much the payments can be late, before the punishment comes and if it comes, what is it? It is also important to calculate, what is the difference between the present loan program and the consolidated loan program during the whole running time? For a couple the consolidation does not pay off, because if the wife will die, a man has to pay the whole loan or if he meets the divorce, he will have to pay the whole loan.

Understanding Student Consolidation Loan

Student consolidation loan is a situation where series of loans are combined together to make one bigger loan from a single lender, which is then used to pay off the balances on the other loans. It often reduces the size of the monthly payment by extending the term of the loan beyond the 10-year repayment period.

One good thing about it is that you can consolidate your loan with any lender without any problem or hassle. Most lenders do require minimum balance before they will consolidate your loans. There are many loan service companies that you can approach for this service.

However, when seeking Student Consolidation Loan Services, the following vital points must be your guiding principles.

1. There must be a wide range of repayment plans options available for you to choose from. Plan should include graduate and extended repayment plans that will make you pay smaller monthly payments over a longer period of time.

2. The company in question must offer federal, private and the combination of the two types of consolidation. This will enable you stay with only one company for the effective management of your loan.

3. The company must have a good customer care that is ready to assist anytime the need arises.

4. It must be convenient and flexible.

5. Your students' consolidation loan company must be able to offer competitive rate of interest at low finance charges.

6. It must allow for savings.

7. Employ the services of companies that offer student loans and consolidations to keep all academic debt in one location for easy assessment and management.

8. There should be provision for future consolidation in the agreement.

9. The full terms of the contract or agreement should be properly and clearly stated and disclosed to you before you finally agree to it.

The company in question must give you a grace period whereby you can choose to pay back at a future date.

Consolidation makes the repayment process to be very easy and involves a slight increase in the interest rate. If you are one of those having problem in making payment, you can choose from the repayment terms options available for the federal loans income contingent payments. These terms were adjusted to compensate for a lower monthly income.

A graduated repayment provides lower payments during the first two years after graduation, while the extended repayment allows for extension of term of the loan without consolidation. However, each of these options increases the total amount of interest paid.

Finally, students' consolidation loan is beneficial to students' credit rating. However, not all federal student consolidation loan companies report their loan status to all credit bureaus. Also, this consolidation does not incur any fees for the borrower unlike the private sector debt consolidation. Private companies make money on student loan consolidation by reaping subsidies from the federal government.

For a better understanding of this subject matter, there are some factors you must consider when you want to select a service company. These factors as analyzed above must be borne in mind in your day to day activities. This will make you build on a very solid foundation as far as loan consolidation is concerned.

Tips For College Loans Rates For Consolidation

Tips For College Loans - Rates For Consolidation

While in college, most students do not have time to give much thought to how they are going to one day pay for their student loans. Instead, they are busy studying, figuring out which major to choose, getting a date, or going out and having fun.

Reality hits pretty hard on about 2-3 months after graduation, however. Soon, the grade period granted for most types of student loans is set to expire. The new college grad is now focusing on how to earn a living and build on his or her personal life. Then, the harsh reality of college loan repayment hits.

The actual payment amounts that the student is responsible for making is determined by the loan's interest rate and agreed-upon repayment period (which is often 5-15 years).

Meanwhile, the complexity of the repayment process is directly affected by one other thing: if the student has taken out multiple student loans. Having multiple loans means that some payments are due on the 1st, some on the 20th, etc. This is a pain to manage.

The Benefits Of College Loan Consolidation

If you are a grad who holds multiple college loans, you may be interested in consolidating your loans. Consolidating your loans comes with a number of benefits. The biggest benefit for most people is the ability to stretch out your repayment period over more time, such as going from 10 to 20 (or even 30) years.

Another benefit is that of simplifying one's life. By consolidating, you only have to make a single payment each month and only have to deal with one lender.

College Loan Rates For Consolidation: How They Are Calculated

The interest rate for federal consolidated loans is calculated as a weighted average of the interest rates of your existing loans, rounded up to the nearest 0.125% (with a maximum rate of 8.25%).

Meanwhile, the interest rate for private consolidated loans is calculated based upon some standard rate (like the prime rate) and your credit score. The rate you are offered will vary from lender to lender, so it pays to shop around.

Tips For Getting The Best Rate

For private student loan consolidation, the interest rate of your new loan could vary quite a bit. Here are some tips for getting yourself the best college loans rates for consolidation:

1. Check your credit score: Before contacting a private lender, research your credit score. For better or worse, your credit score will play a huge part in the rate you are offered (see above). Therefore, knowing your score ahead of time gives you the power of knowledge to help influence your negotiation.

2. Calculate your idea repayment period: Find an online loan calculator. Based upon the total amount you still owe on your existing college loans and your current (weighted) average interest rate, plug in different repayment periods (e.g., 10 years, 20 years, etc.) and see how they affect your payment amount. Caution: while lower monthly payments may be just what you need right now, remember that a longer repayment period will result in your loan costing you more in the long run.

3. Research rates with multiple lenders: Compile a list of at least 5-10 private college loan lenders. You can research them online. Write down the important information about each one, such as advertised rates, contact information, etc.

4. Apply to at least 5 lenders: Be sure to apply to at least 5 of the best lenders. You will be tempted to stop once you get your first offer, but following through and applying with all of them will greatly increase your chances of getting the best-possible offer.

Follow these tips to get the best interest rate for your loan consolidation.

Three Effective Tips for Private Student Loan Consolidation

Would it not be nice to take all your private student loans and wrap them into one loan. You can do that with private student loan consolidation lenders. Right now you are probably paying two or more lenders different amounts each month, on different days of the month, at different interest rates, and each with different pay off dates or maturities.

Roll It All Into One

Of course, this situation can be somewhat overwhelming. The cost in postage and stationery alone is enough to set you back. And two great big student loans can leave a hapless former student feeling somewhat hopeless. Never fear - student loan consolidation is here.

What Consolidating Does

By consolidating your private student loans, you can have one payment, one amount (probably with a sum much less than the two or more you are presently carrying), on one day of the month, at one interest rate, and with one maturity date. And, if you are not careful, you can have one big problem.

Three Effective Tips

Many variable come into play when considering what you need to do to get your student loans into a manageable form. If you are not prudent and careful, if you do not shop around for the best interest rates, the best repayment terms, the lowest administrative fees, you could be making moves that will cost your hundreds, perhaps thousands, over the cost of your new student consolidation loan. And that is not what you had in mind, is it?

Effective Tip One - Interest Rates

The first thing you need to do is go online and find a weighted interest rate calculator. This will give an average interest you are paying right now with your multiple private student loans. That weighted interest rate is what you want to aim for when you apply for a student loan consolidation.

If you can, try to get a rate lower than that calculated. Pay no attention to market rates, you want an interest at, or lower than, what you are now paying. If you hold your ground, your lender will come around. They want your business after all.

Effective Tip Two - Fees and Penalties

This is very important. Lenders tend to elide over these facts. You want to know if there are late fees and what is the cost. What about carrying fees and other administrative fees? Consolidation lenders should not ask for application fees, or credit check fees.

If they do, refuse them and find another consolidation lender. Policies vary widely from lender to lender so be sure you get the skinny on any incurring or recurring fees. Do not sign anything until you completely understand it.

Effective Tip Three - Marketing Promotions

Beware of incentives or marketing ploys the consolidation lender may be using to lure unsuspecting borrowers. All too often, fantastic interest rates, very easy initial payment terms, and other little trinkets are offered. After reading the fine print, you suddenly discover that you have signed a variable interest loan, the payment will double in the next year, and all sorts of other nasty terms become apparent. Remember, if it sounds to good to be true, it is not true. Consolidation can be a godsend, do not let it turn into a devil's dream.

Student Loans May Need Some Consolidation to Be Repaid

Beginning a professional career with crippling debt is not generally considered an ideal situation. But every year for tens of thousands of college graduates, that is exactly the situation they face thanks to the student loans they took out to get them through college.

College education does not come cheaply. In fact, statistics show that, over the last three decades, the cost of a college course has increased to a greater degree than the average income. That means that, even with inflation taken into account. the costs of college have skyrocketed.

Little wonder then than loans for students are considered a must by the vast majority of college goers. Not only that, but it is not unusual for a number of separate loans to be taken out over the four or five years spent in college.

In order to effectively manage these loans, it is advisable to get a student consolidation loan, which brings the individual debt together into one entity, thereby making the repayments more manageable. To some, this may seem an unnecessary step to take, but there are several reasons why it is the wisest tactic, and two in particular.

Helps Keep Good Credit

It is a little known fact that students loans cannot be written off in bankruptcy. In that regard, they are very different to any other loan, and the stigma of not repaying the loans tends to stick. The reason is that loans for students are given a significant period of grace, which effectively means that the lenders have lost money by the time of graduation. They therefore reserve the right for full payment.

Defaulting would mean a serious hit on the credit rating of a graduate, and understandably that places a lot of pressure on them once they have graduated from college. To avoid a harsh fate in a jobs market that is weak, a student consolidation loan is the most practical solution.

Helps Recover from Bad Credit

A second reason is that should a student already develop a bad credit rating, then it is imperative that the student loan is repaid if their credit rating is to recover. Unless a well paid job is found quickly, then this is not going to happen, leaving consolidation the only practical step to take. Every lender knows that students do not have any money, so in approving loans to students they accept a higher level of risk. However, when the time comes, they will expect repayments to begin.

What a student consolidation loan does, is allow a new loan to repay the old one, but crucially, a manageable repayment schedule for the new loan can be negotiated. It means that if a lender starts to demand repayments on the student loan of perhaps USD500 per month, then through consolidation that loan can be repaid in full, while the new loan can be repaid at a rate of perhaps USD350 per month.

The new rate means that the debt is much more manageable, and the original loan is cleared too. However, it must be pointed out that any bad credit that is developed will mean that the student consolidation loan will have a higher interest rate. Therefore, it is essential that a graduate does not delay in taking control of their student loan.

Student Loan Consolidations Companies Choosing The Best Loan Consolidation Lender

Student Loan Consolidations Companies - Choosing The Best Loan Consolidation Lender

Consolidating your student loans is a way of putting together all the loans you took from different lenders into the hands of a single student loan consolidation company.

How do you choose the best consolidation lender that will offer you the best repayment terms?

Choosing the wrong consolidation lender can cause a serious damage to your budget and general economy. It is very important to follow some guidelines to help you decide who can be your best consolidation company.

Private against federal.

If your original loans are from a federal source, you will look for a federal consolidation. Usually the federal loans are more convenient than the private ones due to the lower rates of interest.

On the other hand, if the loans to consolidate are from a private source, you will usually go for the private consolidation lender because the federal company will not offer you a good interest rate for consolidating private loans. The reason for choosing this way is that interest rates and terms vary for both.

Although some private lenders may offer you amounts that consolidate most of your debt, you should always go first for the federal company if most of the loans you need to consolidate are federal.

As a general rule, getting loans from the private consolidation lender means meeting more requirements than from the federal ones. Private lenders base their loans on creditworthiness and will be looking more at your credit score (if you have any) or the co-signer you present.

Interest rates.

Private lenders usually determine interest rates according to two factors: the standard rate (LIBOR) used for loans and your credit score. The higher your credit score the lower the interest rate that will be applied. You will try to find a consolidation lender that will offer the lowest interest rate possible. Also, interest rates can be fixed or variable. The first of course are to be preferred.

Federal lenders (not all federal lenders are offering consolidation loans now), on the other hand, calculate interest rate as the weighted average of the individual interest rates of the loans being consolidated.

Terms and conditions.

You will try to find a lender that offers you the best terms in relation to:

a) Loan Amounts. You will prefer those lenders that can offer you a loan that covers all your debt.

b) Fees, usually determined by your credit score. These are usually application fees and origination fees (fees applied to issue the loan).

c) Deferment or period of time between the moment you receive the loan and the moment you start repaying.

d) Repayment term or length of time to complete the repayment.

e) Whether co-signers are required.

Student Loan Consolidation Tips and Resources

Student loan consolidation can provide financial relief to graduates carrying multiple college loans. Graduates can consolidate both federal and private education loans to reduce interest rates and monthly payment amounts.

Most people use student loan consolidation to eliminate multiple payments. This can be particularly helpful for medical and law school graduates who often have six or more loans. Upon graduation, students must allocate funds to cover each installment as well as keep track of multiple payment dates. When post graduates submit late payments they are subjected to late fees and run the risk of damaging their credit rating.

There are several factors to consider when consolidating college tuition loans. It is a good idea to conduct research or work with a financial consultant to weigh the pros and cons of college loan consolidation. The Internet can be a good source for understanding the intricacies of consolidating loans, as well as to shop and compare lenders.

Students with both subsidized and unsubsidized loans will have different needs than graduates carrying one type of financing. Although subsidized and unsubsidized loans can be consolidated, lenders must consolidate the two using two separate loans in order to track payment transactions. However, borrowers will have one monthly payment and lenders contribute appropriate amounts to each account.

Graduates must meet lending criteria in order to consolidate federal student loans. Eligibility criteria involves having an adequate FICO score; paying three loan payments in full; being current on all loan payments; and waiting six months from the date of graduation before applying for a consolidation loan.

Post graduates with Sallie Mae financing must apply for consolidation loans through a conventional lender. At present, Sallie Mae is no longer participating in the federal loan consolidation program due to legislative cuts made by Congress.

Students with Sallie Mae education loans can obtain counseling with a repayment specialist to find out which refinancing options exist. Student loan payment program details are provided at SallieMae.com.

When borrowers consolidate education loans they must apply for a new loan to pay off outstanding student loans. Nearly all private and federal loans can be consolidated including: Perkins, Stafford, Direct, Guaranteed, and Health Professional.

The U.S. government offers a sponsored student loan consolidation program for graduates who obtained financing through Direct Loans. This program is a good choice for students with bad credit because applicants are not required to undergo credit checks. Program details are provided at LoanConsolidation.ed.gov.

Last, but not least, post graduates should research loan consolidation alternatives such as forbearance programs, tuition deferment, and student loan forgiveness. Debt forgiveness programs are available to graduates who hold degrees and obtain employment in public service fields such as education, medical and law. Loan consolidation alternatives are presented at CollegeScholarship.org.

Student Loan Consolidation Services Using Them To Pay Off Debt

Student Loan Consolidation Services - Using Them To Pay Off Debt

When students graduate from college, they start thinking about how to pay back their loans that financed their cost of education. A number of financial lenders are offering student loan consolidation services aimed to ease the financial burden of borrowers.

As the economy attempts to recover from the crisis, authorities have set lending rates at record lows to make credit affordable and accessible to more people. As a result, student loan rates right now are also low.

This is particularly beneficial for those who have received more than one loan while they were studying in college. By consolidating their student loans, borrowers are able to reduce their monthly payments thus allowing them to allot some of their cash for other expenses.

While these loans are designed to aid students in their educational expenditures such as books, tuition, and cost of living, they actually come in two forms: federal and private.

The federal loans are those sponsored by the federal government while the others are provided by private institutions. In general, however, private student loans cannot be consolidated with federally sponsored loans.

Nevertheless, there are lenders that target borrowers who would want to refinance their private loans. Even if these kinds of services cannot use the low rates being offered when refinancing federal loans, they can still offer benefits to the borrowers.

The benefit includes making just one payment every month and, since the terms of the loan have changed, it reduces the amount the individual has to pay on a monthly basis. The catch, of course, is the resulting higher interest payment throughout the life of the loan.

A number of institutions have provided private student loan consolidation services in the market including Chase, Wells Fargo, and NextStudent. When looking for a lender to refinance the loans, a few questions need to be asked such as whether the interest rates are fixed or variable, whether there are any fees involved, and whether there are penalties in the prepayment of the loan.

Consolidating federal loans, on the other hand, can reduce the monthly payment up to half and lock-in on a low fixed interest rate.

Additionally, the borrower can bundle all the loans into one manageable loan resulting to just a single monthly payment. They will be able to obtain of the service without additional application fees, origination fees, and prepayment penalties involved.

It provides the option for borrowers to select from the various terms in repaying their consolidated loans up to 30 years. Several lenders have also provided this kind of service.

Consolidating student loans is a wise approach in obtaining more flexibility in managing personal finances particularly in this environment where many continue to be in financial turmoil.

Student Loan Consolidation Getting Out of Debt

Student Loan Consolidation - Getting Out of Debt

A college education today more often than not entails a huge amount of student loan debt. In some cases, multiple loans are required to cover the expenses of a good university education. Upon graduation, the challenge then becomes the urgent need to eliminate that debt in order to move on to other financial obligations like mortgages, car payments, etc.

One practical way to get rid of your debt is to consolidate your loans. Here are the basic things to know about consolidation of your loan:

What is educational loan consolidation? It is essentially combining multiple student loans to enable only one monthly payment as opposed to two or more. This is a great option that provides help for managing finances.

How does one qualify for loan consolidation? The law states that only Federal loans can be consolidated with other Federal loans. Private loan consolidation depends entirely on the individual lenders.

How does student loan consolidation help in you payoff student loan debt? By providing an easier way to manage your finances to help you keep track and payoff educational loan debt in a timely manner, you'll be able to get rid of these loans quicker.

Does loan consolidation affect my interest rates? The short answer is: it depends. Most student loan consolidations however have a fixed interest rate that is lower than the person loans' interest rates combined. This will greatly help in reducing the monthly payment amount for loans and will help to faster and more effectively.

How does one apply for educational loan consolidation? For private loans, organizations like Student Loan Network and NextStudent can offer students help and payment options and advice to help you in paying off your all your student debt using strategies that will fit your income and financial capabilities. Always canvas and compare financial institutions first before selecting one and it's important for you to read and understand the fine print before signing anything to avoid confusion in the future.

Some graduate students have found it necessary to consolidate their educational loans when applying for a mortgage on a house.

An Alternative

Consolidation simplifies the repayment process but does involve a slight increase in the interest rate. Students who are having trouble making their payments should consider some of the alternate repayment terms provided for federal loans. For example, income contingent payments are adjusted to compensate for a lower monthly income. Graduated repayment provides lower payments during the first two years after graduation. Extended repayment allows you to extend the term of the loan without consolidation. Although each of these options increases the total amount of interest paid, the increase is less than that caused by consolidation.

Student Debt Consolidation Loans Can Decrease Your Debt

Student debt consolidation loans can ease the burden even as the debts that students have to take on in order to finish their college education are getting more and more expensive and harder to repay. There is a way to decrease debt by using student loan consolidation programs that will make them easier to pay back. There are proper steps to take to find consolidation programs. If you are a resident of the US or UK, the process for finding good student debt consolidation loans are the same. This can be done after graduation or even before you get your degree. Debt consolidation means you will be able to decrease the loan amount and take away some of the strain of your monthly loan payments. Having the ability to repay your debt will not only create a financial future that is solid but will create a history of credit that is positive.

In order to take advantage of the consolidation programs that are right for your particular needs you will need a bank account and routing numbers, financial information with a budget plan showing your expenses and your income for each month and an application for a consolidation loan. You actually have several options available like Government grants, financial aid and scholarships which all have the ability to significantly reduce your tuition costs without the need to repay after you graduate.

Student debt consolidation loans are a big help in keeping your debt under control. Another option might be to work your way through school with a part-time job that will pay down your tuition debt. This will make a huge reduction in your student loan debt. Student loans for college mean you are making an investment that will take years to repay. One option to reduce this debt may be going to a community college for a couple years and then transferring all your credits to a university or a four-year college.

Take a good look at your monthly budget plan with all your expenses including the payments on your student loans for college. There are usually small ways to cut down on your monthly expenditures by decreasing any unnecessary expenditure. The money you save from cutting back on these expenditures can then be applied to paying down your student loans. can make this even easier once all of your loans are combined into one lower interest and probably much lower monthly payment. Low interest rate student loans are the best way to pay off loans on time. Paying your student loan payments on time means you will be building good credit for your future. In fact, several loan institutions will offer a reduction in your interest rates if you are always on time with your payments. An easy way to make sure your payments are on time is to use the option to have your monthly payment deducted directly for your bank account before it is actually due. This way there will never be an interruption in your payments which automatically builds an excellent credit rating.

Student Debt Consolidation Loan Competent Finances to Clear Debts

Student Debt Consolidation Loan - Competent Finances to Clear Debts

To pursue a good education, a student has to avail loans to meet all the expenses. Problem arises when the student is required to make repayment of the debts incurred. As the loans were sourced from various lenders, the debts piled up are of high interest rates. So how is the student going to manage the debts? In this regard, you can seek the assistance of student debt consolidation loan. This loan assists you to remove the burden of debts in an easy manner.

This loan provides a big relief for the students as it offers the finances, so that they can easily clear the debts. Through this loan, a student can avail the required money equal to the total amount of debts that is required to be paid to the multiple lenders. By repaying all the debts, the student are now obliged to a single lender, to whom he/she has to make a single monthly payment at reduced rates.

It does not really matter what is the credit standing of the student while availing this loan. It is because students with a history of bad credit such as CCJs, IVA, arrears, defaults etc can also avail this loan. The loan amount is approved without any credit check, enabling the borrower to obtain the finance easily. Moreover the debt repayment plan is designed according to the prevailing circumstances of the borrower.

This loan is made available to the students with a comparatively low interest rate, as compared to other loans available in the financial market. Moreover the repayment of the loan too is flexible. Student can repay the amount after the completion of course after getting a suitable employment.

Student can source this loan from lenders based in the physical market as well as from online lenders. By applying online, the students are not required to personally visit the lender. Instead he has to fill an online application form. Besides, online lenders are offering this loan at very cheap rates.

By availing student debt consolidation loan, enables a student to clear the debts incurred without facing too many obstacles.

Student Consolidation Loan Checklist

If you are graduating college soon, now is the time to begin preparations for your student consolidation loan. You have a six month grace period after graduation before payments begin, but the consolidation loan application process can take several weeks, especially if you haven't gathered all your loan information and decided on a lender.

Inventory your student loans. Make a list of all your loans, including type of loan, lender, the amount of your loans, interest rates and the amount of your payments. Review your loan documents, contact your lenders or loan servicers or go to the National Student Loan Data System (NSLDS) website. If you don't know your PIN (Personal Identification Number) to log in, you will have to request a new one and it will be mailed to you. Expect to wait a week or two for the PIN to arrive, so best to get it done early.

Calculate Your Current Monthly Payments If you are already in a repayment status, you will know your exact monthly payments. However if you are still in school or in your grace period, you should estimate your monthly non-consolidated loan payment based on the current interest rates and your loan balance. You can also check your estimated payment amounts by contacting your lenders or loan servicers.

Budget? What's a Budget? Though many people wander through life from paycheck to paycheck without knowing where their money is going, you really need to set up a budget to see if student loan consolidation is for you. Once you have that first job, determine a reasonable amount of your income that can be allocated to your student loan payments. This percentage should be based on a realistic budget. Then see if the estimated loan payment amounts you calculated above will fit into your budget.

If your estimated or actual payment exceeds that monthly budgeted amount, reevaluate your income and outflow. Can you trim any areas of your budget? Can you increase your income?

If it's a short term issue (expected raise in pay, getting a part time job, etc.), consider your deferment or forbearance options.

However, if there is no light at the end of the tunnel, it is time to consider consolidating your student loans.

Select loans for consolidation. Determine which of your loans are eligible for federal consolidation. A listing of the loans that can be consolidated in addition to Stafford and Perkins can be found at Eligible Consolidation Loans.

Private student loans are not eligible to be consolidated through the Federal consolidation programs.

You might lose some discharge (cancellation) benefits or deferment benefits if you include certain types of loans in your consolidation loan like Federal Perkins Loans, for example. You can contact the holders of your loans to find out what the impact of consolidation will be on your current benefits.

Consolidate Your Loans Try going through the Federal Direct Loan Consolidation Program. You can make the application online.

If you have graduated, but are still in the grace period, start the consolidation process approximately two months before the end of the grace period. This will allow enough time to have your consolidation loan processed before the grace period expires, yet not so early that you lose too much of your grace period if you have a FFEL consolidation loan. (If you consolidate FFEL loans during the grace period, you will give up whatever portion of your grace period remains. You retain all of your grace period, however, if you get a Direct Consolidation Loan.) Some FFEL lenders offer to hold disbursement of consolidation loans until the end of the grace period to enable borrowers to minimize their interest rate and maximize their grace period. Check with your lender to be certain.

Keep in mind that if you consolidate during your grace period, you can lock in an interest rate at least a half percent lower than the current repayment rate. Many lenders will give you a discounted rate if you sign up for electronic payment and also for making a certain number (usually 36) of ontime payments.

When filling out the consolidation application, make sure you provide complete and correct address information, include two references, and sign the promissory note. Miss any of these and you will delay the processing of your application.

If you are already in repayment, continue making payments on your loans until consolidation is completed. If you need immediate payment relief, request deferment or forbearance.

Steps to Finding the Best Bank For Private Student Loan Consolidation

Depending upon the type of student you were, your college experience was either filled with stress, studying and the excitement of reaching new learning vistas - or it was filled with beer, parties, and hanging out with lots of members of the opposite sex.

Either way, it is a fact that you - like all college students - had to come up with a way to pay for the whole experience. Whether you attended a less expensive state school as an in-state resident or whether you went to a fancy-schmancy private university, your student loans likely run into the tens or even hundreds of thousands of dollars.

The reality of having to repay all of those loans hits most grads at one of the worst-possible times: just a few months after graduation. Just when you are faced with the need to find a job, get an apartment, and generally get your post-college life on track, you get hit with your first student loan bill.

Things can even be worse if you have multiple loans, given that you are having to manage multiple payments at once.

However, for those with multiple loans, there is a bright side: you are likely to be eligible for private student loan consolidation.

Who Qualifies For Private Student Loan Consolidation?

If you have more than one student loan through a private lender (i.e., not the federal government but rather through a private bank), you are eligible to consolidate your student loans through a private consolidation lender.

You should consider consolidating if you are less than half-way through your repayment period, if you want to reduce your monthly payments, and/or if you believe your credit score has improved since your initial loans were received.

How Your Consolidation Loan Interest Rate Is Determined

For private loans, your consolidation loan interest rate is determined by a combination of the going prime rate - or other major right like the LIBOR - and your credit score. Of course, your private lender will have some discretion as to your new interest rate, which is precisely why it pays to shop your rate around with multiple lenders.

3 Steps To Finding The Best Bank For Student Loan Consolidation

Here are 3 steps to finding the best bank for private student loan consolidation:

1. Start with a list of at least 3-5 banks: Do your research online to get together a list of at least 3 to 5 banks who specialize in private student loan consolidation. Remember, it is very unlikely that your first offer will be your best, so by researching multiple banks you will have a much better chance of potentially saving thousands of dollars in interest over the life of your loan.

2. Visit their websites: These days, there is nothing like the Internet in terms of conducting efficient, fast and comprehensive research. Start with each company's website. If you like one or more sites and have the time, order an information packet through the mail.

3. Apply to at least 3 of them: Once you have found at least 3 lenders you like based upon your research, apply to all of them. When the offers start rolling in, be sure to wait for all of the offers before making a decision.

Follow these tips in order to find the best bank for your private loan consolidation.

Sallie Mae and Next Student Loan Consolidation Rates Companies The Two Right Choices For Students

Sallie Mae and Next Student Loan Consolidation Rates Companies - The Two Right Choices For Students

As students consolidate the loans, they can minimize their monthly loan payment. The key is to find the good lender and the proper interest rate. To reduce interest rate with low payments requires them to choose the right company. However, when comparing loaners, it is difficult for students to consider payment fees, interest rates, and loan terms.

As a matter of fact, there are plenty of student loan consolidation companies available, hence they can't realize which one is the best to make a selection. In order to assist students have a good selection, I highly recommend the top 2 companies namely Sallie Mae and next student. These companies are able to offer you the greatest rates and preserve you money by consolidating your student loans, and they are famous for their good handling of student consolidation loans because they make applying, repaying and servicing easy.

Regarding Sallie Mae, its best benefit is that this company provides their guarantee of the minimum legal interest rate. The advantage of low interest rates is in the thousands of dollars over the life of the loan. Sallie Mae has over ten million borrowers on record in the US and over 30 years of experience with servicing all forms of student loans, including consolidation loans.

It brings many factors including low student loan consolidation rates and online applications. Furthermore, it demands neither application fees nor credit checks. The greatest advantage is that this company offer borrower benefits that smaller interest rate. Importantly, it offers students be-signature for smooth flow of the online consolidation application process.

As beneficial as Sallie Mae, Next Student promises to reduce your student loan payments by up to 60%. Their interest rates are really small and they bring financial consultants to help in the application and consolidation process. Additionally, it handles federal and private loans which mean students can consolidate different types of loans easily and with the same lender. , they can keep federal loan benefits with a federal consolidation loan and still consolidate private loans with a lender they experience and trust.

If you have not consolidated your loans previously, Next Student offers student loan consolidation rates services. If you are out of school or if you will be graduating in six months or less, keep in touch with this company to figure out how you are able to decrease your monthly student loan payments by as much as 60 percent.

Sallie Mae and Next Student's mission is to extend access to college and to make sure no student is denied the chance to follow their dreams. This decision allows us to direct our resources on increasing college access for more students and parents.

Options for Student Loan Forgiveness for Those Involved With Debt Consolidation

The breaking news today is not so breaking and earth-shattering but we wanted to keep you up-to-date on what President Obama is doing with the student loan forgiveness program. First of all, although President Obama endorses student loan forgiveness, there is a not a Federal program that ties directly into and with debt consolidation, per se. If you happen to be one of the millions of citizens in the United States that currently has some form of debt consolidation going on then do not worry as there are many other ways in which you can pay off that education from the University of Texas without having to sell you're first born.

Great Steps

Today we are listing at a few of the ways that you can be forgiven for your student loan obligations. Please have a look below at three of President Obama's newest and most revolutionary steps towards a valid and viable student loan forgiveness program in the United States. If some of these sound familiar they should be as the Federal government always has had a system of student loan forgiveness through military service and other philanthropic areas of concern. What's new about Obama's steps towards reforming the student loan crisis in America today revolves around extended time frames for repayment and public service forgiveness.

Methods of Service Loan Forgiveness

Public Service Worker - As this form of work normally doesn't pay a very high salary what it does give back is the feeling that you are doing something for others and your country. The government feels that this is at least worth something and has mandated that after 10 years a student loan balance of those public service workers will be forgiven.

Teacher - The Federal Teacher Loan Forgiveness Program for Direct Loans is a program where qualified teachers who work full time for five consecutive academic years will have their loans forgiven. The catch is that in order to qualify the teachers must be, in what the Federal government considers, to be an elementary or secondary school designated as "low-income".

Military Enlistees with a Degree - This program is relatively cut and dry with a new recruit with at least a two-year associate degree qualifying for this program.

If all of the above options are not your cup of tea then there is one more method for repayment of your student loan obligation. This is referred to as the Income Based Repayment Program.

Debt Consolidation Resources

How to Consolidate a Private Student Loan

Juggling regular payment bills could be a real hassle. These include lease, water, electricity and other basic services that need finance attention. It can be more excruciating if your loan bills come in separate envelopes and have sundry confusing computations and IRs. There are answers to this monthly chaos. You can start handling your financials with your study loans. Consolidate them and be better arranged. Study loan consolidation is a repayment scheme that rolls in together all of your loans into one payment, adjusting your IRs into a fixed one.

This particular tool can reduce the quantity of your monthly charges up to 53% and give you a longer time to settle the loans you have made. Likewise, they have shorter payment periods and have inadequate protection policies in comparison to Fed loans. It is suggested that if it is going outside your monthly income by 8%, or if your personal debt has reached or surpassed $5,000, consolidate them.

You will lose the advantages of the federal loan payment policies. Nearly all federal and personal loans are qualified for consolidation. In everything, there are bad and good sides. The benefit is that you do not have to consider multiple monthly loan bills coming your way. Eventually, it gives you longer repayment periods, so you do not have to rush around attempting to find money to pay your debt. On the other hand, consolidating private student loans won't entitle you to the advantages of the drop of rates since your scheme is pegged down to a certain interest rate. funds. There are a lot of establishments that offer their services. Some names well known for non-public loan consolidations are Sallie Mae, Next Student and Citibank. The very first thing to do is to go through a study or research on where you need your loans to be consolidated.

The best starting point is with your original bank. Compare which one can provide you with the lowest rates, best benefits and payment conditions. A brilliant way to start is with low rates that increase continually. This is a more controllable scheme. Remember that personal consolidations are dependent on your credit report and that of your co-signor.

How A Student Debt Consolidation Loan Can Help Your Credit Score

While going out and obtaining a school loan is not necessarily the best way to repair credit, those with existing student debt consolidation loans may want to consider the process of how such loans can assist in creating positive credit scores over time. For, while such loans can often be quite expensive and hard to repay, those who do often have some of the best credit scores anywhere in the world.

Of course, before taking out such loan, it is important that one understand the schedule and payments required on such loan. For, if one fails to repay school loans, unlike others, the Internal Revenue in the U. S. Or other agencies in other countries may be able to place a garnish on tax refunds and other income. However, there are often limits as to how much such establishments can take from income.

Although, at least in the United States, the IRS now garnishes any tax refund in entirety and places same against such loans. For, unlike private loan companies which have no access to such information, the government can generally access any information about individual which it so desires. As such, when repaying school loans, it is often best to make such payments a priority.

For, those who can and do repay such loans on time, often have an easier time getting accepted to graduate school, joining the military, buying cars and property and locating jobs. For, while most employers still do not perform a standard credit check on each and every employee, there are some companies which require one undergo both a background and credit check. As such, it is often recommended that those seeking jobs keep criminal and finance records clear of such negativity.

However, there may also be instances in which an employer requires a clean driving record. For example, most often anyone having to drive while on the job, such as an armored car driver, or, pizza delivery person. As such, to assure that one can continue to get work in such fields both now and in the future, it is good to keep such records clear.

Still, one may still be able to obtain other loans even with some negativity on a credit report. However, one is most often going to have to pay much higher interest rates with such marks on record. As such, once such issues have been taken care of, it is good to request that credit agencies remove such marks from record.

Last but not least, as such school loan payments are often quite large, paying such regularly often includes overall credit scores. However, if there are any other negative marks on such score, one may also want to attempt to clear up such matters. For, while paying school loans on time can often help improve such credit scores, paying smaller bills after a past due date, or, having utilities turned off can often result in additional negative remarks on such report.

To this end, after having paid off school loans and other debt, one can often clear a credit report of any negative actions. Of course, depending on how long such debt has been on record, one may or may not still be able to pay such debt without having to locate a new agency or company who purchased such from another. After which, one can generally pay off such loan and have such remarks removed from the report in entirety.

Government Backed Credit Card Debt Consolidation Loans

Government-Backed Credit Card Debt Consolidation Loans

Are your loans often left unpaid? Do you get notices from debt collectors? Do you feel trapped under your credit card debt and feel you have no place to turn? You are not alone, and opting to take a government-backed debt consolidation loan may help you become financial stable again. If you have exercised every option, consider finding a debt relief representative to discuss your financial future and the best way to get out of debt.

What is a Government-Backed Debt Consolidation Loan?

It is the process in which individuals are offered a loan through the federal government to pay off outstanding debt. They follow the same fundamental guidelines as private sector loans, but have a few minor variations. Government loans set restrictions on the type of debt that can be consolidated with each varying type of loan. Research your options carefully to know whether your debt fits the program.

Many programs are offered such as the Direct Debt Consolidation Loan Program and The Federal Family Education Loan Program. The most commonly issued government loan is for college students. These loans help students consolidate multiple student loans into one low-interest monthly payment.

What are the Advantages to Consolidating Your Liabilities?

Interest rates are normally lower than ones for individual credit loans. Combining what you owe into one low-interest monthly payment will save you a considerable amount of money over time. It also decreases the amount of money you pay creditors each month. Having one payment a month eases stress and helps you gain control over your finances.

A majority of lenders working with government programs will offer several different payment options according to your needs. Thus, you set the pace on how quickly you pay back your loans without tightening your budget.

How to Choose the Right Company.

Never go into a loan program without extensively researching your options. Finding a reputable company should be your number priority. The last thing you want is more stress over your financial situation. Be wary of companies who offer "free government grants" because often hefty processing fees and other mistrusting tactics are used.

A reputable non-profit organization will help you combine your financial liabilities through a government loan. Try to find a company that offers in-person counseling so you can sit down with a representative and review your options. Also, check references through your own banking institution, your local consumer protection agency as well as friends and family.

Finding The Best Student Loan Consolidation Lender

A consolidation loan is a gathering up of all the loans you have taken with various student loan lenders and paying them all off with a loan from a consolidation lender. So, instead of having a number of creditors, each with a different amount due, each with a different day of the month due, and each with a different interest rate; you can have one bill due per month.

Finding a Student Loan Consolidation Lender

Choosing the wrong consolidation lender could potentially ruin your monthly budget and that could lead to late payments, late fees, even default. Late payments or defaults will cause very bad marks on your credit history and that is not the way you want to start life in the real world. The following guidelines should help.

Private Vs. Federal Student Loan Consolidation Lenders

If all your original loans were taken from federal sources, you would be wise to seek a consolidation lender who works under the auspices of federal student loan programs. These lenders usually are more convenient because of their understanding of federal student loan programs. They also tend to offer lower interest rates than private student loan consolidation lenders.

On the flip side, if the loans you wish to consolidate are from private student loan lenders, you should probably opt for a private student loan consolidation lender. When asked to consolidate non-federal loans, federal loan consolidation lenders will not usually come up with the best interest rate. It is always wise to shop around and compare rates and fees.

Another consideration is that private lenders tend to exert more requirements than federally connected lenders. Private lenders base their approval process on credit histories. Having just graduated, you may not have much credit history. Because of this, the lender may request a cosigner. His or her credit history will be scrutinized.

Interest Rates

Private student loan consolidation lenders tend to determine interest rates based on two factors: Your credit rating and the interest it allows along with the market rate this type of loan is presently demanding. The higher your credit score, the lower the interest rates. Shop around, various lenders will calculate interest rates a little differently.

Private lenders may offer you a consolidation loan with variable interest rates, determined yearly by the caprice of loan markets. You would do yourself well to find a lender willing to grant a loan based on a fixed interest rate so you avoid the loan market fluctuations.

Most federal lenders will calculate an interest rate that is a weighted average of the individual interest rates you are now paying to each company.

Terms and Conditions

Just as as you must when seeking any type of loan, you should keep your eye on certain considerations.

Loan Amount: Do not agree to a consolidation loan if it will not completely retire all your outstanding student loan amounts, including any odd fees or adjustments.

Fees: These are often determined by your credit score, or the score of your cosigner. They are usually referred to as application fees or origination fees.

Deferment Time: This is the time between the satisfaction of the amounts owed the various lenders and when you must start payment to the consolidator. The longer the better.

Maturity: This is the amount of time the lender will give you to satisfy your obligations. The larger your monthly payments, the sooner you can retire the debt. Of course, the lower your monthly payments, the longer you will be in debt and the more interest you will pay.

Cosigner: If at all possible, try to avoid having a cosigner. This further complicates the process. Sometimes it is hard to find a trusted individual who is willing to assume the responsibility.

Factors To Consider When Applying For Student Loan Consolidation

Your family's education loan, car loan and business loan when combined is stressing enough. Especially when debt repayment occurs, everything may go out of hand. So before you lose your mind as well as your family's income read up on loan consolidation and organize your debt correctly.

Loan consolidation will merge payments that acquired of your family so that payments will be transacted in one way or one process. For example, if your older brother has applied for business loan and you have your private student loan, loan consolidation will merge these loan together that your debt repayment will be as one.

Loan consolidation will make your debt repayment easier to supervise and to organize. Very similar to refinancing a mortgage, almost all federal financing solutions such as FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Financial Assistance, NSL, HEAL, Guaranteed Student and Direct loan can be consolidated. Some financing companies offer private consolidation for private student financial assistance as well. Communications can be made at the Department of Education or the Federal Direct Consolidation Loans Information Center if you request to consolidate your federal parent or student financial assistance.

The United States Federal Direct Student Loan Program (FDLP) offers services to to consolidate that gives freedom to students to merge their Stafford Financial Assistance, PLUS financial aid loans, and Federal Perkins Loans into one. Lessened monthly repayments and a longer term for the loan are benefits when the borrowed money are consolidated. It also gain fixed amount of interest (depending on the total amount of consolidated loan as well as the length of time that the loan may exist.

When the lent money are consolidated, debtors can enjoy of selecting the terms of loan from 10 years up to 30 years. However, consolidated loan has drawbacks too. Grace periods after graduation and other possible request for special consideration will not recognized when the lent money are consolidated. By saying so, consolidation are not recommended to all kinds of debtors.

Students that are married no longer have the privilege to consolidate their loan together since July 1, 2006. Having a partner to consolidated your borrowed money will only means that both of you share responsibility for the loan. Sometimes when divorce occurs to marriage, debt repayment usually suffers. That's why the US congress deem it necessary for the sake of everyone to nullify the provision stated in the Higher Education Reconciliation Act of 2005 that allows married students to consolidate their loan.

Upon applying for loan consolidation, lenders or financing companies will request of a minimum balance with at least $7,500 total amount. Federal Direct Consolidation Loan program will not oblige any.

Several alternative option plans for debt repayment are provided when the lent money are consolidated. The total amount of monthly payment is also reduced. Further, the term of the loan are extended from 12 to 30 years considering the total cost of the debt.

When thinking of loan consolidation, it is the best to talk to people who had their borrowed money consolidated before. It also helps that that debtor studies all concerns revolving the consolidation, the benefits carried by the loan provider as well as the debtor's financial stability.

College Loan Consolidation How to Pay Back Student Loans

College Loan Consolidation - How to Pay Back Student Loans

College tuition is on the rise and both students and parents are seeking additional methods to help pay for the soaring costs. Student loans, grants, work-study and scholarships are common ways to supplement or completely pay for the cost of college.

Student loans are probably the most popular of financial aid sources. It is quite usual for a single student to take out multiple loans to cover the many expenses of a college education - tuition, books, dorm, transportation, etc.

At the end of a college student's career, many students often find themselves facing a daunting load of financial payments which start after a six to nine month grace period after graduation.

Many students turn to College Loan Consolidation to reduce the stress of multiple, high payments, opting for the lower payments and extended terms of a student consolidation loan. While there are advantages to consolidating college loans, students should fully analyze and research all of the aspects of this process..

College Loan Consolidation - Federal vs Private

Federal loans are more popular than private loans for a few reasons. Federal loans have lower and fixed interest rates and additional benefits such as grace periods. Private loans are likely to have higher interest rates, and no grace periods.

When consolidating, keep the types of loans separate in order to retain the benefits of the Federal loans. Federal loans provide a cap on the interest rate, along with fixed interest rates.

College Loan Consolidation - Advantages and Disadvantages

It is important to consider both the advantages and disadvantages before taking action on a student consolidation loan.

Advantages include:

The reduction of monthly re-payment amount Lower interest rate, which may save you money over time Organization of loans - make only one monthly payment Disadvantages include:

Possibly paying more money over the life of the loan Most likely paying on the loan for a longer amount of time - 10 to 30 years There are few options to consolidate this loan later If you decide that college student loan consolidation is for you, start by conducting comprehensive research.Begin with federal student loan consolidation programs such as Federal Family Education Loan Program and Direct Loan Consolidation.

They offer fixed interest rates capped at 8.50%. There are also other free resources to help you make a decision. It is important to shop around and gather as much information as possible in order to make the best decision.

For private student loan consolidation, inquire with various lenders both offline and online. Many times, online vendors provide a lower interest rate and quick approval times.

Perform exhaustive research until you are completely comfortable making a decision, as this decision will make quite an impact on your financial future for years to come.

Citibank Student Loan Consolidation 3 Ways To Get Lower Interest Rates

Citibank Student Loan Consolidation - 3 Ways To Get Lower Interest Rates

With the increasing amount of student debt and the soft economy, many college students and graduates are having trouble making their monthly loan payments. Thankfully, there are banks willing to help out the students and aid them in solving this problem. Several lenders have begun offering products and services that focus on these loans and the students who took them out. The Citibank student loan consolidation is one of the most common in the market. There are three things you should look for before applying for one of these loans.

Pay On Time

The first thing you should be on the lookout for is lower interest rates. Usually a student loans consolidation package will have lower interest rates. There are two different ways this can be done. The first is that the bank can offer lower interest on student loans consolidation if the borrower pays their loan bill on time for the first six months. There is also a second way to get lower interest rates.

Automatic Payroll Deduction

The second way that banks offer lower interest rates is if the borrower agrees to sign up for an automatic deduction from her bank account. Many lenders believe that an automatic charge leads to fewer missed payments. Because the money is deducted immediately. they do not have to rely on the borrower to put the check in the mail or go to their online account and make an electronic payment. With the automatic payroll deduction, it is very quick and easy for both the borrower and the bank. This makes the bank likely to accept a lower interest rate as one of the terms of the loan.

Increase The Loan Duration

Most lenders will also be willing to make a consolidation loan at a lower interest rate if you agree to a longer life of the loan. This makes sense and is helpful to both sides. If you are going to pay them less each month, they want to be paid for longer to make up the difference. Of course, it helps the borrower by making it easier to meet monthly budget requirements. The actual amount paid out each month is less.

Consolidating student loans can be a great idea. Citibank student loan consolidation is one of the most popular programs for good reason. Before you agree to a loan with Citibank, or with any other loan provider, be sure to consider the three points above and negotiate for the best possible terms for yourself.

A Student's Guide To Direct Loan Consolidation

Direct loan consolidation is a program that helps you to manage your student loans. The US Department of Education's Federal Direct Loan Consolidation program allows you to consolidate your student loans into one new loan. The types of student loans you can consolidate among others are Federal Stafford Loans, Federal Perkins Loans, Direct PLUS Loans, and almost all other federal student financial aid programs. The result of this is reduced monthly repayment, extended repayment period and, although not always, lower interest rate.

As various financial aid programs may have different interest rates, the consolidation overcomes this by setting a fixed interest. The interest is determined based on the average of your combined loan interests. The consolidation interest ranges from 0.125% to 8.25%. The average of your combined interest will be rounded up to the nearest 0.125% of a whole 1% (e.g. an average interest of 4.111% will be rounded up to 4.125%). With this calculation, you might end up with a slightly lower or higher interest. A lender sometimes gives dispensations for students by giving lower interest rate or other reduction. You can consult your lender about the possibility of getting this dispensation.

With direct loan consolidation, you can extend your repayment period, resulting in lower monthly repayments. You can extend the period from the standard 10 years to 12-30 years, depending on the amount of your consolidation. Nevertheless, longer repayment period also means higher interest. To deal with this, you can increase your repayment or prepay the debt once your financial condition is recovered.

To apply for a consolidation program, your loans must be in the grace or repayment periods. A grace period is the amount of time during which you are not obliged to make repayments, which usually lasts for 6 or 9 months. Note that once the consolidation process is completed, your grace period will automatically end. So if you want to benefit from you grace period, you can delay the consolidation process until near the end of the grace period.

If you apply for the program during the repayment period, you should continue repaying the loans you want to consolidate. A step-by-step consolidation process can take around 30 to 45 days. When the consolidation process finishes, you are given 180 days to add any loans you might forget to enlist into the loan consolidation.

If you encounter problems repaying your loan, you can contact your lender to grant you a deferment or forbearance. A deferment is a period of time during which your lender allows temporary suspension of payments on your loans, while forbearance is a period of time during which your lender temporarily reduces your monthly payment amount.