The Four Federal Student Loan Consolidation PlansAnybody studying in the United States and owing a student loan is eligible for federal consolidation plans.Federal college loan consolidation plans are applicable for all students regardless of if you are still in school, a graduate, or are already mid-career. If you currently have a number of loans, it is easier if you use federal consolidation to consolidate them into one loan payment.There are four types of federal college loan consolidation to choose from:Standard Student Loan ConsolidationThe maximum loan period is 10 years and the payment per month is fixed. This type of plan is suitable for those who can afford to pay a fixed amount per month. The interest rate does not make a big difference in large consolidation loans. This is the easiest plan for those on a budget.Extended Payment PlanThis type of plan is nearly the same as the standard consolidation except it has a longer repayment period of between 15 to 30 years. The repayment period is based on the student loan amount. Ultimately, this plan will reduce the monthly payments further by extending the life of the loan.Graduated Payment PlanThis plan is best for students still in school that can only repay the loan when they have a job after school. The repayment period is between 15 to 30 years. The payment per month starts low and increases slightly every two years.Income Contingent Payment PlanThis plan is complex and is based on the student’s income level over a number of years. It is also based on the family’s annual income, other loans owed, assets, mortgages etc.Most student usually choose graduated payment plan or the extended payment plan for their federal student loan consolidation. The choice is ultimately up to each student. It is recommended that you take a close look at your individual circumstance at gage the pros and cons of each plan
If you own a television or a radio, you are probably pretty familiar with the term “refinance.” There are tons of companies boasting about the great mortgage rates and every better refinance rates. Sounds wonderful, but what does all of it mean?If you refinance your home, a lender will pay off all of the debt you owe on your home and will issue you a new loan. This new loan can be pushed out to whatever length you need to get the monthly payments you are dreaming of. It can help lower your interest rate and can save you money every month. Refinancing can also help those with a bad, adjustable rate mortgage switch to a more stable fixed rate loan. But there are several major reasons NOT to refinance; to determine if this is the wrong time for you to refinance your home, ask yourself these simple questions.How long do I have left on my mortgage? Even if your payment is way too high for your current situation, refinancing a loan that only has two more years left on it will only hurt you in the long run. If you still have a substantial amount of time on your loan, a refinance would be better suited to your situation. If you are trying to refinance more than the remaining balance on your home loan, an equity loan may be the better route to go.How much is my home worth now? When you bought your home for $500,000 four years ago, you took out a loan for 80% of it. Too bad your home is now only worth $400,000. If you try to refinance a loan on a home whose value has dropped, you may not be able to get a loan large enough to cover your original loan. Refinancing loans isn’t for people who have lost a great deal of property value. Be sure to consult your bank to find out what would be a better course of action for your upside-down home.How much equity have a used? If you have taken out a second mortgage, be wary that refinancing your home with an equity loan already in place could drive you deeper into debt, instead of helping you out of it.How does my credit look now? If you got your home loan a few years ago, before you were unemployed for two months, or before that big hospital bill or bankruptcy, your credit may be a little worse for wear. If you try to refinance and your application is rejected because of your credit, it will negatively effect your credit score. If your credit has taken a beating, it doesn’t need another blow! Be sure your credit is healthy before trying to refinance; it will help you save money in the long run.Would I be financing for more than 80% of my home’s value? If you are planning to refinance your mortgage and second mortgage, be aware that new loans for 80% or more will drive your interest rate up.
A homeowner line of credit is a special type of loan that allows you to borrow money over an extended period of time, up to a preset limit that is set by your home equity. By using a homeowner line of credit instead of a more traditional loan, you are allowed a greater freedom over the amount that you spend and where you spend it than you would be with most forms of lump-sum lending. The information below should help you to decide whether a homeowner line of credit is right for you and your specific borrowing needs.Using EquityIf you’re planning on borrowing money to consolidate your debts, then you may need to have a larger loan or one that can be used to cover multiple sources of debt with ease. Very few types of collateral exist that can secure such a large amount, and an unsecured loan can carry interest rates so high you may not save much by consolidating. By choosing to use home equity as your collateral, you can borrow the amount of money that you need while saving quite a bit on the interest that you pay.When you use your equity to secure a homeowner line of credit instead of a more traditional homeowner loan, you will also be able to use the borrowed money as you need it instead of simply borrowing a lump sum to perform all of your consolidation at once.Choosing a Line of CreditThere are a number of reasons why a homeowner line of credit may be a favorable alternative to other forms of loans for debt consolidation. In addition to featuring an expanded flexibility due to the nature of a line of credit, you may be able to get the line of credit issued with a limit of as high as 125% of the value of your equity. Because the loan is issued as a credit line instead of a straightforward loan, you can access the money slowly over a longer period of time. This also allows you to take the loan in more manageable pieces; instead of borrowing the money outright, you can use a portion of the loan and take the time to pay some or all of it back before using the next portion.Debt ConsolidationWhen using a homeowner line of credit for debt consolidation, you can negotiate with and repay each creditor separately instead of using the same loan to repay all of your debts at once. This can allow you to potentially secure a better deal on various debts, saving you money on your repayment.Additionally, you can use the line of credit to repay some debts in multiple payments; by spreading your debt payments over several billing cycles, you can begin generating positive reports to credit reporting agencies before paying off the debt completely.
Buying a home is a dream of many individuals, couples, and families. However, this dream can come with some financial burden, which can leave many people struggling to make ends meet as they carry large mortgage payments from month to month. There is a way to ease this monetary difficulty so that people can enjoy the hard earned fruits of their labor. With the latest innovations in mortgage programs and rates, refinancing can not only save you money, it can also lower monthly payments, and free up equity that the homeowner has built up in their homes, so this frees up time to pursue other dreams.If you are not very knowledgeable about refinancing, there’s always someone who can help. The many types of loans available can make refinancing seem like a heavy task. Talk to a reputable refinance agent to get acquainted with the process. Their job is explaining the refinance process and make sure you are a well informed homeowner. They provide general information on all aspects of refinance loans, leaving you with the ability to decide which loan is best for you.It is sometimes very difficult to find a lender that best suits your needs. This step could be made easier, if your refinance officer researched various lenders that offer refinance programs. Researching information on lenders, the type of loans that they fund and any other pertinent information that will assist you in making a decision as to whether you’ll choose their services or not.Your home can also bring you extra cash. Your home has probably increased in value, which allows you to take some of that cash out of your home, and use it for whatever you’d like. Repairs, renovations, pay off some bills, or take a long luxurious vacation. This is cash out mortgage refinance transaction, and its tax deductible.Refinancing is usually advantageous, when the interest rate is at least one to two percent lower than your current mortgage rate. When interest rates start to fall, visit your lender and inquire about refinancing. Discuss your financial situation, your goals, and your refinancing options. Most likely there will be a fee charged to refinance. The procedures and cost will probably be the same as when you first received your mortgage. Your lender should explain the process clearly, and you should feel comfortable with your lender. If you do not feel comfortable, find another lender.
Everybody is facing financial problems in this time of recession. Monthly pay cheques are shrinking. Hourly pay rates are descending day by day. In the worst cases, many companies are showing the exit door to many of their employees. Then how will you live the luxurious life you are addicted to? How will you pay off the loans that you took out when times were good? Examples of these loans may include personal loans, credit card loans, gas loans etc. In this situation, debt consolidation consumer loans may save you from stressful days and nights.What is a debt consolidation consumer loan? It is a loan is a single loan that you may take to pay off all your other, smaller loans. Now you do not have to pay the many installments for all your credit card loans, education loans, medical expenses and home ownership bills; instead, you will pay a single installment every month that may be light on your monthly budget. Yes, you will have to pay the monthly installments for a longer period in the case of a loan.What are the benefits of it? It has several advantages. One of the most important advantages is that now you do not have to worry about paying numerous installments of your different loans. The interest rate you will have to pay is normally lower than that of any other loan. You now have the advantage of paying in smaller, easy installments to get rid of your debts.Which loan program will suit you? When choosing the best debt consolidation consumer loan, you must be aware of all the types of programs available and you must be firm about your needs and financial situation from the start. You may choose one of various types of programs like a personal unsecured debt consolidation loan, home equity loan, cash-out home refinance and credit card consolidation. Each of these programs has its own merits and demerits. You may request the help of a consultant to choose according to your needs.Do you qualify for a debt consolidation consumer loan?It is not 100% sure that you will qualify for a debt consolidation consumer loan. If your debt amount ranges somewhere between $2000 and $5000, most probably you would not qualify for a debt consolidation consumer loan. In this case you will need to contact a credit counselling organization to learn how to manage your finances. You may only take advantage of debt consolidation consumer loans if the total amount of your unsecured loan is more than $10000.What do you need to apply for a loan? Before contacting any financial organization for a loan, you must have some essential information handy. This information includes your recent credit card statements, information about your other loans or mortgages, bank transactions, and some of your recent monthly pay statements or proof of income.
For most people, university is a completely new arena. This, of course, applies to the social aspects of college life, as well as the economic status needed by advanced studies. It remains a fact that university can be very expensive, sending a number of scholars and parents into debt. If you are one of those students or parent who is trying to get the monthly payment obligations under control, then a student loan consolidation service is the place you need to begin.If you have several loans, then a student loan consolidation service will have the tools to get your finances under control. You will derive benefits of lower monthly installments, maybe lower interest rates and probably an extended term of payment to ease the monthly commitment for your education debt.What you do not want to happen is to allow your obligation to go into default. You want to try not to neglect you obligation to your lender. It will take a lot to get there, but it can happen. We all know how bad this can be for our credit rating for future borrowing opportunities.After attending college, most students find themselves struggling to meet the monthly payment obligations. Comparing their monthly installments with the total amount due, it is clear that they are buried up to their neck in debt for education financing. So they begin to rethink their decision to attend college at that level of expense. But in the long run education is not cheap, and it’s just a matter of finding a way to meet this obligation, and a student loan consolidation service may be the only option.During his post-graduate studies, one of my friends used a couple of deferments to ease the rough patches. In so doing he racked up his debt and almost could not believe the debt he was carrying at the end of his studies. There were 5 obligations that added up very quickly to make up the payment that was required every month. After studying, he simply use a student loan consolidation service to reduced his payment to about 70% of what the original cumulative amount was. So instead of finding 400 dollars each month, he only had to pay about 275 dollars per month and take care of all his monthly obligation. They best part was, he was able to pay additional funds and apply it directly to the principle of the loanIf a particular university is very costly for your finances, deeply think about a more inexpensive university. Because at the end of it, you are the one who have to meet the payment obligation. You may wish for the most excellent school, but if your finances dictate that another university is more appropriate for you, then the defining factor is finance.During college, many students apply for part time jobs to help them through college. It has been shown that 7 out of every 12 students maintain several occupations concurrently with their college education. There are many jobs on a campus or within the radius of the university. Some actually pay so well that some students have been able to meet all of their education cost by working while studying.The idea is not to ratchet up too much debt that becomes unmanageable. In the end, if you do think that you need that all too expensive education, then start working out a financing plan to include consolidation at the end of your studies. Start researching student loan consolidation service providers as part of your financial planning, you will be happy you did.
In the point of view of many people, student loan bills are overwhelming and frustrating, especially when the job market is not stable at the moment. For those unemployed graduates, staring at the monthly repayment amount of each of the student bill is a stressful thing because they are unable to pay the loans without income. The immediate actions they are advised to take are to consolidate all their study loans into one single loan and defer the payment.If you are like other students who have less information about student loan consolidation program, here are some guides for you when you consult a loan consolidator in the market. There are 5 basic questions you need to ask in order to obtain a better understanding about the program. It is important for you to identify whether this program is beneficial for you or make your credit score worse.1st Question:Who is eligible for consolidation?For students or graduates who have never consolidated their study loans, they are eligible for this program. You can only consolidate loans that are under your name. As a student, you can only consolidate your loans during the grace period of the loans or after the phase of repayment has started. If you are married, you and your spouse are not allowed to combine your loans together.2nd Question:Is there any additional cost incurred if I consolidate my study loans?The process of consolidation is absolutely free. Hence, you are reminded to stay away from those consolidators who charge additional fee to consolidate your loans. In common, many consolidators also waive the prepayment penalties. If you pay back your loan ahead of the schedule, you are not required to pay any penalty.3rd Question:What is the new interest rate on your newly consolidated loan?When you decide to consolidate your student loans, it will only be beneficial if you manage to get a lower interest rate. The most ideal rate for federal consolidated loan is 6% and for private consolidated loan, the best is below 8%.4th Question:How long is the duration of my new repayment plan?If you have a very tight budget, you are suggested to check with the consolidators whether you can extend your repayment term to a longer period. If your student debts are huge, you should look for plan which allows you to extend your repayment up to 25 years.5th Question:Who is my lender?You have the freedom to consolidate your loans with any lender. The key point here is you are advised to look for reliable consolidator in the market who can really help you to reduce your monthly payment and save some money in the long run. Sign up the plan that really suits your financial needs.
Being a student in a higher educational institution is a rich and rewarding experience. It is also a privileged one: only a small percentage of the world’s population has the opportunity to go to college or graduate school.With that privilege comes responsibility. Part of the responsibility that comes with higher education is that of paying for the education itself. Some lucky students enter college, study for a few years, and then graduate without ever having to pay a dime of their own money or take out a loan. However, for the majority of students, attending college requires taking out one or more student loans.The responsibility for making student loan payments begins not long after graduation, when the grace period ends. Student loan payments can be a heavy burden, especially for recent grads who have not yet had the chance to get a high-paying job but who still must keep a roof over their heads and pay for food. It can make money very tight.For graduates who hold multiple student loans, loan consolidation can significantly reduce the amount of their monthly payments. How does it work? It’s pretty simple: by consolidating their loans, students can stretch out their payments over more years than their current loans allow.For example, their current loans may have repayment schedules of 5 or 10 years, whereas with consolidation they can stretch out their payments over 30 years. Doing so will definitely bring down the monthly payments they have to make.Federal Versus Private Loan ConsolidationIf you are interested in consolidating your loans, you will need to first determine whether you should apply for federal or private consolidation. Put simply: if your existing student loans are federal loans, you should apply for federal consolidation. Otherwise, private consolidation is what you need to pursue.If you are wanting a federal consolidation student loan, here are 5 tips that can help:1. Decide Whether To Consolidate:First, decide whether it makes sense to consolidate at all. For example, if you are more than half-way through repayment of your existing loans and are able to make monthly payments, consolidation may not make sense.2. Take An Account Of Your Existing Loans:If you believe consolidation is the right path for you, start by taking stock of where you are now. Write down all of your student loan balances and interest rates. This is important because the interest rate for your new federal loan will be a fixed rate and it will be calculated by taking the weighted average of the rates of your existing loans.3. Determine Whether You Qualify For A Federal Consolidation Loan:Check out the U.S. Department of Education website to find out which federal student loans qualify for consolidation.4. Figure Out The Repayment Period You Want:Since your interest rate will be determined for you based upon your existing loans, the most important strategic decision you can make in the consolidation process is that of choosing the right repayment schedule (e.g., 10 years, 20 years, etc.) for you. In general, your rule of thumb should be to choose the shortest possible repayment period while still leaving you with manageable monthly payments.5. Fill Out An Application:Finally, fill out the federal student consolidation loan application and start on the road to approval.Federal consolidation student loans are a snap if you take the right steps. The end result could be a very significant reduction in your monthly loan payments.
Even though home equity loans are known to be chancy, these loans can also afford to give advantages to people. With using your very own home equity, you may have the chance to gain access and even extra money to improve your home, debt consolidation and many more. To add to that, you as homeowners can either choose between 2 equity home alternatives. A lot of homeowners chooses home equity loans fixed rate preference.Equity home loans fixed are simpler to be eligible for, and it’s feasible to get approved with a less than ideal credit rating. The interest rate on these loans is a great deal lesser than the typical credit card. In addition, due to fixed terms, the majority of homeowners are capable of paying back the loan in 5 to 10 years.Home loans equity fixed are the best choice because of the following benefits it can give:1. Current Rates Are Rising. By choosing a fixed-rate equity home loan, you basically lock in the rate for the life of the loan. On the rise are the interest rates meaning each week or maybe even every day, the rate that you will be getting or charged for your home equity loan may increase. By locking in the rate now with a fixed-rate loan, you’ll never have to pay a higher rate.2. Temptations in buying will be lessen. To get a fixed rate, you have to select the type of home equity loan that you have to choose that also dishes the money out in one lump sum. But for Equity home lines of credit, it permits you to use the account multiple times.3. You will be aware of what your payments will be. So since all your interest rates are fixed and will never be changed overtime and since you can only take up one lump sum, all your payments will exactly be the same during the life of the loan. In this way, it will make it easier for people to budget since they know now how much they will need to make their monthly payments.There can be loads of advantages to a home equity loans fixed such as consistent payments amounts and the ability to lock in lesser interest rate. All in all, it is best to avoid an adjustable-rate loan unless the current interest rates are extremely high and professionals predicts they will fall in the future. Before choosing this preference, homeowners should be educated of the pros and cons.
Large numbers of college students make that common mistake each year of signing up for as many credit cards as possible. There are always a bunch of card reps outside college games and other large events offering free tee shirts, water bottles, hats, gift certificates and more in exchange for a signature on a credit application.Of course, once the credit cards start to arrive, they’ll be using them to finance a lifestyle that they aren’t even close to being able to afford. And even before they know it, they will owe thousands of dollars of debts and their minimum payments will just cover the interest fees.Many students will be looking for a college consolidation debt loan before they’re even ready to graduate. At least this way, their debt will be manageable before they really move on into the outside world.The right credit counselor can point a student in the right direction and help him find the best debt consolidation company. A good company can offer many solutions to manage the debt and get the payment back on track, where it’s affordable and matches the capabilities of the student. Many students will decide not to go to a debt consolidation company and instead, choose the “do it yourself” route. There are many good guides available for this but the students have to be really strong willed and consistent without that credit counselor to guide them. If the student chooses to go the debt consolidation agency route, they need to check out the company completely.Find out how long they have been in business and if they have references. It’s also a good idea to check with the Better Business Bureau in the area to see if there are any complaints against the company. In many cases a college consolidation debt loan makes the difference between a student ready to take on the world, and one that’s already worn out by the system before they even start their new life.