Consolidating College Student Loans – Efficient Solution to Debt Woes

Certainly you must be tired of the interest repayment on your student loans that you need to face every month. Worry not as there is not an effective solution to all your problems and this is what we call student loan debt consolidation. With college loan consolidation schemes, students are able to enjoy numerous advantages and benefits.However, students can become confused on what the qualifications are when applying for college loan consolidation programs. But when it comes to federal loan consolidation, the government is clear on the rule that students within their grace or who found themselves in the position wherein they are not able to pay their loans qualify in getting student loan consolidation schemes. Those who are still enrolled may enjoy the benefits that federal guaranteed loans offer.Nowadays, there exist many lending companies that offer student loans to students, however there are many of them who charge high rates of interest. Indeed, students are obliged to pay interests on the loans that they obtained, and this is done on a monthly basis. For some, this responsibility can be quite impossible to fulfill because of lack of financial resources.When it comes to repayment of college loans, this task can be a great burden and certainly a big distraction from the career of life of a student. The best thing to alleviate such burden is by getting a student loan consolidation program. This is the greatest deal for one to get and enjoy. Such financial schemes certainly help a student by taking away his worries on how to pay back his monthly payments. This happens once he is able to obtain a new, more manageable loan.

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.

Can You Refinance Student Loans After Consolidation?

While you’re trying to get a college education, student loans can seem like a huge bonus, but once you are out of college, you’ll face the repayment on all those loans that you have taken out during your years of school. If you’re overwhelmed with your college loans, then you may be wondering if a consolidation loan is right for you. However, there are many things to consider before you take this route.One of the big questions people have when it comes to consolidating loans is whether or not student loans can be refinanced after consolidation. Well, while the actual consolidation loan cannot be actually refinanced, you are able to consolidate a consolidation loan, but this can only be done once.If you are going to consolidate the consolidation loan you already have, the only way you are able to do this is by adding on new loans that you have not consolidated. Two different consolidation loans can also be consolidated into just one loan, but you cannot just refinance it on it’s own.Even if you do a reconsolidation, it doesn’t mean that the rates on your previous loan are going to be relocked. A special average interest rate formula that is weighted is used to figure out the interest rate.If you are trying to work on consolidating your current student loans and you think you may want to switch lenders in the future, then you may want to exclude one of the loans you have from this new loan. This way, if you think you want to go to a different lender and reconsolidate, you have the option available to do that.

Great Tips to Easy College Student Loan Consolidation

If you are a student borrower who desperately wants to lower down your loan payments every month, then college student loan consolidation is a great solution to this problem. However, the process of consolidation your loans is not that easy and so in order for you to free yourself of too much hassle, here are some great tips on how to consolidate student loans.One good thing about government loans is that the interest rates are fixed when consolidating them, and so rest assured that the rates that the lending company will charge you are within the boundaries of the law. Albeit there is already a ceiling on the interest rates when consolidating government loans, it is always to your advantage if you will shop around for those with really low interest rates.Grace period of loan repayment means you are done with college and earn a degree but the part of repayment, you just have not started. The grace period is usually from the graduation day to 6 months after and is usually regarded as an excellent time to which you acquire college student loan consolidation. Lower interest rates are primarily the benefit that we can take advantage of when consolidating during this period.Most students try to keep themselves tied solely to federal student loans, however, it can’t be avoided that their overall college expenses are not covered by government loans – and so they need to get another type of loan, which is the private student loans. The latter basically pay off everything else that the federal type was not able to.Now if it so happens that you have both the government and private loans, which is most likely if you fund your education primarily through loans, then never have them consolidated together.Apply first college student loan consolidation on all your federal loans – this is a totally separate group. Then you can deal with all your private loans, which you must consider you other loan group. Have them all merged into another process of debt consolidation.What’s the reason behind the separation of the two types of loan when acquiring college student loan consolidation? Simply it is because the federal loans have more benefits such as the interest cap, which will be lost once it gets consolidated with private student loans.

Can You Refinance Student Loans After Consolidation?

While you’re trying to get a college education, student loans can seem like a huge bonus, but once you are out of college, you’ll face the repayment on all those loans that you have taken out during your years of school. If you’re overwhelmed with your college loans, then you may be wondering if a consolidation loan is right for you. However, there are many things to consider before you take this route.One of the big questions people have when it comes to consolidating loans is whether or not student loans can be refinanced after consolidation. Well, while the actual consolidation loan cannot be actually refinanced, you are able to consolidate a consolidation loan, but this can only be done once.If you are going to consolidate the consolidation loan you already have, the only way you are able to do this is by adding on new loans that you have not consolidated. Two different consolidation loans can also be consolidated into just one loan, but you cannot just refinance it on it’s own.Even if you do a reconsolidation, it doesn’t mean that the rates on your previous loan are going to be relocked. A special average interest rate formula that is weighted is used to figure out the interest rate.If you are trying to work on consolidating your current student loans and you think you may want to switch lenders in the future, then you may want to exclude one of the loans you have from this new loan. This way, if you think you want to go to a different lender and reconsolidate, you have the option available to do that.