Consolidate Student Loans – 3 Helpful Tips

Earning a college degree is one of the most significant accomplishments in life. However, going to college these days, especially private universities can be costly and can put you well into debt if you are not careful. Many students need help to pay tuition costs and most college students turn to student loans as an option. During college, students do not think about repaying the loans back but soon after graduation the reality sets in. What is the best way to handle the school debt? One option is to use student loan consolidation as a means to assist in restructuring the finances of those students who have accumulated numerous loans. Here are some helpful tips to consider when you consolidate student loans:1) ResearchDo your research when investigating lenders. Don’t assume all lenders are looking out for your best interests. Just like you did in college, you need to make sure you do your homework and find a credible lending institution. While comparing and choosing the best lender to use you should consider flexible application procedures such as an online application and the ability to manage your account online. Loan counselors on the site can help you decide if what they are offering is what’s best for you. Take the time to compare the different incentives between lenders. This will enable you to make a well informed decision based upon weighing the pros and cons of each lender.2) Consolidate your federal and private loans separatelyMany times graduates will get one loan that consolidates all of their federal and private student loans. Be aware that if you do this, you could lose some of your federal loan benefits. One example is if you combine both private and federal loans you can lose out on the interest tax deduction benefit you get with your federal student loans. Try not to be hasty when going though the consolidation process as there are many benefits to keeping these loans separate.3 Manage your new payment scheduleWhen you consolidate student loans, most likely you will have obtained a lower interest rate. The lower interest rate combined with extended payment terms would result in lower monthly payments. Take advantage of the lower payments and pay more towards the monthly bill. It’s recommended that you pay about one-third more than the minimum payment. If you can do more then that’s better, but be sure that you can afford it. The benefit of handling your monthly payments this way is that you will pay off your loan faster than normal and at a lower rate.Student loan consolidation is a worthwhile option and can help to lift your student loan burdens. Research lenders and the sooner you consolidate student loans the faster you can take advantage of the benefits of low interest rates and lower monthly payments.

College Loan Consolidation – Lead a Debt Free Life

College loan consolidation relieves the students from the tension of repayment of their loans by consolidating them into a single installment and that too at a lower rate of interest. So, it also helps them to concentrate on their studies.Why college loan consolidation?Today’s career conscious students can actually get great help to ease off their burdens of repayment of large amount of their student loans. They can conveniently pay attention on their selected career instead of wasting their sleep over paying the various installments of monthly student loans. College loan consolidation ensures them a peace of mind even when they are in huge debt.When a student applies for different loans from various financial institutions, there are numerous interest rates and long term payment system that comes along with such student loans. The main aim behind a consolidation student’s loan is to combine the various student loans into a single convenient payment loan system. With these student loan consolidation schemes, the students only need to make a single monthly loan payment instead of the burden of several loan fees for each month. Having the features of less credit checks and lower rates of interest make these consolidation student loans all the more demanding and advantageous.Relieving the unnecessary tensionCollege loan consolidation contributes in helping students to focus more on their education and development rather than the debt that needs to be repaid. With a single loan and lower cost of monthly payments, students can enjoy their tension free sleeps. After making a thorough research on the available options in student’s loan consolidation, one can find the best and most beneficial consolidation students loan service provider.Some of the exceptional benefits that are provided while you choose to consolidate student’s loan include:• Payment of the fixed rate of interest- With some of the federal student’s consolidation loans, there may be chances that you would be required to pay a fixed rate for the entire life of the student loan. It is a wise idea to do some research and see the most appropriate rate of interest and the total loan term that you are eligible for.• Lower amount of monthly payments- Depending upon the amount of the student’s loan and the willingness of the lender, students may be able to get the monthly payments lowered up to fifty percent or so.• Extending the total payment time span- With the help of federal consolidation student’s loans, you can avail the facility of extending the repayment period up to a maximum of 30 years or so.• Having easy and convenient loan payments- By taking the option of consolidating student’s loan, the students need to have only a single loan payment for each month and writing a single check. This is highly advantageous in case you are writing various checks each month to several lenders as it can be really confusing as to what amount needs to be paid to which lender?Availing the online optionsInternet has made it easy to approach the lenders who help in a quick student loan consolidation. The World Wide Web contributes tremendously in making convenient the research and finding excellent deals for consolidate student loans [] with a few mouse clicks. You can get latest quotes and compare different interest rates and quotes of several loan providers and that too without wasting your efforts as you need not waste any money and time in visiting each and every consolidation loan service provider.

The 5 Tips to Consolidate Student Loans Into a Single Loan

Both the private and federal student debts can be consolidated, but not together. When you consolidate student loans, the benefit is the simplicity, i.e. the graduate gets only one or two debts and lenders. But if the debts will also refinanced, then it is possible to get bigger savings.1. When You Consolidate Student Loans, You Can Remove The Co-Signer.Concerning the private student loans consolidation, it is possible to remove the co-signer after 24 or 48 months of making the regular payments. This will free the parent or the relative from the potential liability.2. What Is The Lowest Loan Amount?Most lenders will require a combined sum of $ 5,000 or more for the consolidation for the private debt consolidation and $10,000 for the federal one. You cannot be in a default status with any of your loans. The consolidation process takes about 45 days.3. You Can Reconsolidate, If You Take An Added Loan.You cannot reconsolidate the federal and direct debts unless additional loans are included. For example, if you consolidated your federal debts after your undergraduate degree and then wanted to also consolidate your graduate loans, you can combine the new loans with those that were reconsolidated.4. You Cannot Consolidate Federal And Private Loans Into One Big Loan.There are natural reasons for this rule. If you go back to school, you cannot defer the private loan consolidation payments, but with the federal loan you can. You have to pay the private loan consolidation even if you have difficult economic situation. You cannot get the tax benefits from the paid interests. And you cannot apply for forgiveness on a private loan consolidation.If you will pass away, the private loan goes to the next kin, but the federal loans are forgiven. And finally, the private loans have generally the variable interest rates, so you cannot lock the rate during a low rate period.5. The Need Of The Co-signer.If you are now a recent graduate or undergraduate, it is possible that your lender will require a co-signer for a private loan consolidation. This also depends on the principles of the lender and on the credit history of the borrower. However, in all cases a co-signer will make it sure that the application will go through.The student loan consolidation is a typical financial service process, which is full of details and full of opportunities. That is the reason, why it is wise to turn to the expert and really think this issue thoroughly before jumping into some agreement. I would recommend a low monthly payments, because this system will leave room for the sudden changes in the future. And you can always turn to the lender to pay the loan quicker.

Government Assisted Consolidation Loans – The Free Federal Program to Consolidate Your Debt and Save

Do you have some federal student loans that are choking your monthly budget? Then the U.S. government may have just the cure with their Government Assisted Consolidation Loans. They are a federal program designed to merge all your debts and bills into a single payment.This means, that if you have several monthly payments or a number from several different loans, you can make things easier by consolidating them into one single loan to pay off the total debt. This offers you an easy to manage payment, and in most cases, at a lower rate of interest.The official term for this government program is called Direct Consolidation loans and they are provided to U.S. citizens by the Department of Education.These Direct Consolidation loans are funded directly by the U.S. government instead of a private lender or financial institution. They allow borrowers to lock in low interest rates and extend their repayment period beyond that provided by the original loan. This results in lower monthly payments for the duration of the new consolidated loan.How You Qualify For The ProgramAs stated at the beginning, you must have outstanding federal student loans. Then you must qualify based on your need which is evaluated on the basis of your income, family size and the total outstanding balance of your federal student loans.Some Benefits Of The Government Assisted Consolidation Loans:
The ability to defer payments up to 3 Years
No payments for the first 6 months
No loan origination costs or fees for consolidation
Extended loan payment period of up to 30 years.
Do You Qualify For Direct Consolidation Loans?

Student Loan Consolidation – What You Should Know

Student Loans can be a heavy burden. Student loan default rates continue to be high and are a growing problem. A default on a student loan can wreck havoc with a young person credit score, when they are just starting out.What is Student Loan Consolidation?Student loan Consolidation can help, not only in avoiding default but in making monthly payments more manageable. According to the Higher Education Act, just about every kind of Federal Family Education Loan (FFEL) or Direct Loan is eligible for consolidation. Both undergraduate and graduate school student loans qualify. There are a few specific exceptions and these can be found listed at federal programs make student loan repayment easier by combining several types of Federal education loans regardless if they have different terms, different repayment schedules – even if they have been made by different lenders – into one often lower interest loan. In addition, the monthly payment amount on a consolidated student loan is usually lower and the schedule of payments is usually extended to one that is more reasonable. These features are designed to create a much more manageable debt and should make borrowers less prone to default.Is it Right For Me?Just about anyone with outstanding student loans can benefit from consolidation. However you need to seriously consider it if:Your Monthly Payments Have Become Unmanageable. If you are in danger of default, if you have had trouble meeting your monthly payments, and have exhausted your deferment and forbearance options, student loan consolidation should be serials y considered. There are online calculators available that can help you determine what you new payments would be under the various program available.You have Multiple Payments to Multiple Lenders. If you want to avoid the hassles of sending different payments to different lenders every month with a Direct Student Consolidation Loan you wile b making only one payment to one lender every month
You have Variable Interest Rate Student Loans. The interest rate for a Direct Consolidation Loan is fixed for the life of the Direct Consolidation Student Loan. Interest rates on consolidated student loans are calculated by using a weighted average of the interest rate on the loans being consolidated and have a cap of 8.25%Should I use a Student Loan Consolidation Service?Consolidating your student loans through the US Department of Education is free and anyone can apply. However if you realize you will benefit from student loan consolidation, or are seriously in over your head and facing default, you may want to consider using the services of a professional lender that specializes in student loan consolidation. They have the ability to look at multiple loan programs available from multiple lenders and not just the programs available from the federal government. A professional Student Loan consolidation company can quickly and easily assess your situation and match you with a consolidated loan that is right for you and your financial situation.

How to Lower Your Private Student Loan Consolidation Payments

If you’re having trouble repaying your private student loans you can get help now with private student loan consolidation payments. A consolidation of student loans both consolidates all your private education loans into one loan and resets the loan’s terms.Because, for the most part, you can’t consolidate private student loans with federal student loans, the low federal student loan consolidation interest rates would not be applicable. However, it still is possible for you to pay less each month.You actually have quite a few options that can lower your monthly loan payments.1. Because your credit score strongly influences your interest rates, if your credit score has significantly risen since you applied for your loan, for example by fifty points or more, you might be able to get a lower rate when you consolidate your loans with a different lender.After doing your initial research, talk to your current lender and see if they can lower your interest rate on your current loans. They might consider doing this if they see that they could lose your business to a different lender.2. If you’re a homeowner, compare the interest rate on your variable interest rate school loans to a fixed rate home equity loan rate. If interest rates look like they are going to go up, you may want to get a home equity loan and use the money to pay off your private education loan. Doing this would guarantee that your interest rates will not increase.On the other hand, it also guarantees that they won’t go down if interest rates fall. And, worst case scenario, you could possibly lose your home, so be cautious with this option.3. You can consolidate student loans with an educational lender, such as the private consolidation loan divisions of either Wells Fargo, Chase, the Student Loan Network or others.These companies offer different repayment plans. Some offer up to 15-year term while others offer up to 30-year term. The interest rates they charge as well as fee structures also vary.Because these differences can amount to thousands of dollars in savings, most people that consider consolidating their student loans do extensive research and even do a spreadsheet analysis comparing the pros and cons of each offer before choosing the option that’s right for them. Luckily, the Internet makes it very easy to get the information you need to make these comparisons.When you evaluate private lenders consolidation loans, make sure to find out1. If their interest rates are fixed or variable2. If there are any prepayment penalties, and3. Whether or not there are any fees and what they are.

Consolidating Your Way Out of Student Debt

When college is over and you are left with multiple student loan repayments and sometimes even in debt, consolidating your student loans will help manage your loan repayments and even help save some money. Though consolidating your student loans can be found very useful there are different factors you should take into consideration before making a decision.Consolidating Student Credit Card DebtIt is important to know that when you join a debt consolidation program you will consolidate your debts that have aroused from loans you have applied for during or before your studies. Most debt consolidation service providers do not provide programs for consolidating credit card debt. Do some research covering the topic of personal debt consolidation solutions for different solutions and ways to pay off credit card debt.Consolidating Loans that have Fixed Rates with Variable RatesWhen you were granted the student loan a repayment plan was also given to you. Federal student loans such as a Perkins Loan offer fixed and low interest rates. Consolidating these types of loans with other variable interest student loans will not be beneficial. The interest rate you are quoted will not exceed a fixed 8.25% interest rate, whether or not the average of the interest rates you have to repay is higher than 8.25%. Therefore, logic dictates that it is best to consolidate high variable interest debts. Doing so you will enjoy a fixed, and if lucky, averaged lower rate.Consolidating Federal with Private LoansThese two types of student debts should not be consolidated as one. Further more there aren’t many, if any organizations that will allow you to consolidate these loans. If you are in debt because of private student loans and federal student loans you may still consolidate them, but separately.Learn more about student debt consolidation [] before actually getting a loan, for more tips and strategies.

All About Federal Student Loan Consolidation and Its Specific Features

Student loan consolidation is essentially considered as a tool to manage one or more debts. Such a loan also allows any student to combine his/her federal or private student loans into one single mortgage with extended loan terms, which subsequently minimize the monthly payment.For US students, there are two types of student loan categories namely as mentioned below1. Federal student loans2. Private student loans.Federal Student Loan Consolidation:The Federal student loan consolidation allows a student to consolidate all his loans for one single loan at a lower interest rate. The student could also lengthen his term (tenor) of payment. Many financial institutions provide federal consolidation student loans. The students have a right to choose the most reasonable loan package that suits them.But ultimately, like several other loan options, the federal student loan consolidation also has its disadvantages. Though the students are offered a consolidated loan for less monthly installment, it unanimously increases the full total amount that has to be repaid.Nevertheless, some of the beneficial features of Federal consolidation student loans are as follows:* Interest Rate: Federal consolidation student loans have lower rate of interest than most of the private loan schemes.* Monthly Payments: There is subsequent reduction in your monthly payments. As a student, this can take the load off from your monthly budget and you can also pay the installments easily.* Single Loan: With loan consolidation, there is only one payment check to be paid each month. This is very convenient and uncomplicated form of payment scheme for any student.Eligibility Factor for Consolidation LoansA student is eligible for federal consolidation loans, when he/she is not enrolled in any school and has repaid the loans without any default. Even students who are in grace period after post graduation can apply for such loans. The minimum loan amount should be $10,000 or more.Students having federal educational loans are also qualified to get a consolidation loan. Private education loans are not considered for student debt consolidation loans. Many institutions and companies provide federal student consolidation loans such as credit unions, banks and secondary markets.Mixing up private loans and federal loans for student debt consolidation is not a good idea, as the federal loan interest amount is tax deductible. Some loan amounts are also forgiven depending on the nature of job or service. Private student loans are bereft of such benefits, as they are treated at par with normal loans. Combining private and federal loans for consolidation of debts makes you lose all the wonderful advantages of Federal consolidation loan student.Student loan consolidation [] is specifically meant to minimize the monthly pay amount and for extending the repayable loan terms. It is very convenient for students struggling to pay their monthly installments scattered in several outstanding loan forms.

Student Loan Consolidation – Consolidate Federal and Private Student Loans

Student loan debt consolidation can be a blessing for college students all over. Going to college is a wonderful and exciting journey but the costs of student loans can really add up. It can be very beneficial for many students to take a look at student loan debt consolidation. This is a great way for you as a student to get a handle on your finances when you find that they are spiraling out of control with many student loans.When in college you have to worry about tuition, room and board not to mention books and regular daily expenses. Some students rely on credit cards to help them make ends meet but in the long run, this is only putting them further in debt. The loans can pile up and the monthly payments on these loans can take their toll on your wallet. If you go with student loan debt consolidation options to can free up some of your money and get yourself back on top of your money.When you do a student loan debt consolidation, you take all of the loan debts that you have and roll them into one easy monthly payment. The loan you get would pay off all of the student loans in one lumps sum, allowing you to have just one small monthly payment to worry about making. You will free up your money to help you better deal with regular monthly expenses. They key is in combining loans that were used expressly for education. You can always check with the financial advisor at your school to see what your options are exactly.By doing this type of consolidation, you actually save money in the end and you do not have the high interest rates piling up on many different loans. When you make the choice to consolidate your loans you will want to start by consolidating such loans as Federal Direct Loans, Federal FFELP, Parent PLUS, Stafford Loans and even Perkins loans. You will be able to refinance all of the non-federal loans that you have that is specifically for education.You will need to have a minimum total of $20,000 in federal student loans in order to be able to do a student loan debt consolidation. You cannot be in a default status on any of the loans. Some students find it hard to find work that will go around their school schedule so it is good to know that you do not have to be employed to consolidate. You also do not have to have any type of collateral to put up or a cosigner as you would for regular bank loans. If you feel that you would benefit from a student loan debt consolidation, then you will want to talk with a financial advisor.

How to Save Thousands on Student Loans Using a Loophole in the Federal Consolidation Program

Most graduates don’t realize until it’s too late that there is a loophole in the federal student loan consolidation program that allows borrowers to lock in an interest rate that is 0.60% lower than standard repayment rates. Each year’s graduating class has a unique opportunity to take advantage of this loophole before it closes after the 6th month following their graduation. For students in the class of 2006, November marks the last opportunity to lock in their current low interest rate before it increases.Why consolidating during the grace period makes such an impact on savingsThe reason borrowers are able to save so much by consolidating college loans during the grace period has a two-part answer. First, the interest on a college loan during its six month grace period is up to 0.60% lower than when the loan enters repayment status. Add to this the current federal student loan consolidation rate guidelines that dictate the rate of the new consolidated loan using a weighted average of the current loan’s interest rates. Once college loans are consolidated, the lower repayment rate is fixed for the entire 10 to 30 year repayment period.How student loan consolidation helps borrowersIf you miss the deadline, there are still ways to save with student loan consolidation. One of the benefits that many people say they enjoy most about consolidating student loans, is the ability to extend the repayment term from the standard 10 year period, up to as many as 30 years. By lengthening the repayment period, monthly payments are dramatically reduced.When payments are spread out over a longer period of time, students will pay more in interest over the lifetime of the loan. But many students say that without this option, making the monthly payments on their student loans would be a larger burden than they could shoulder.By consolidating student loans and extending the repayment period, borrowers can keep monthly payments low during the early years of their budding career. Should they choose to do so, borrowers can contribute larger payments as their salaries increase in the future. Most lenders don’t charge any pre-payment penalties, meaning the choice about how long it will take to pay back loans is entirely up to the borrower, no matter how many years they spread out their consolidated loan.Don’t forget to factor in opportunity costsThough it would be ideal to have no debt at all, this simply isn’t an option for most people. New grads face a steep uphill battle. At this stage in life, graduates are juggling cash between buying homes, launching businesses, and starting a family. While a borrower could pay down their college loan in 10 years by paying $700 a month, rather than over 30 years at $258 a month, is it worth the opportunity cost?For those earning enough to do both, the choice to pay off college loans sooner might be more beneficial. But others who are forced to make a choice about how to leverage a tight income must decide what is in line with their ultimate financial goals. Instead of being forced to save around the student loan repayment, borrowers can choose a feasible monthly repayment amount, and then determine the number of years required to repay the loan at that amount using a student loan consolidation calculator.How to Save Even More with the PLUS Loan Consolidation LoopholePLUS loans, once only for parents of undergraduate students, are now available for graduate students to fund their own educations as a result of the Higher Education Reconciliation Act July 1st changes. PLUS loans experienced a rate hike in July, from 6.1% to 8.5% but there is a silver lining to this cloud through a loophole in the Act.Another one of the July 1st changes dictated that all consolidated loans would have a cap of 8.25%, a quarter of a percent lower than the rate of the PLUS loan. This means that any parent or graduate that has a PLUS loan will lower their interest rate, just by consolidating. PLUS loan borrowers can choose to extend the repayment period like any other federal student loan borrower to lower the monthly payment, but with this loophole, even if they make no changes to the 10 year repayment period, they will still save money just by consolidating.Just as before the changes, the process of consolidating federal loans is still free and requires no credit checks and no collateral. As always, federal student loan consolidation neatly wraps up all outstanding federal loans tied together with one fixed rate. So while the rate increase made big news last July, there are still plenty of benefits and ways to save money by consolidating student loans.