The 5 Private Student Loan Consolidation Tips

It is important to note, that the same student loan consolidation can be done only once to the same loans. But if a student will continue studying and takes a new loan, then he or she can do the student loan consolidation once again.1. The Private Loan: Removal Of A Co-Signer.The private student loan consolidation gives a possibility to free a relative or a parent from the position of the co-signer. This is possible after 24 to 48 months after making the regular payments.2. Useful Questions To The Consolidator Of The Private Loan.After a borrower has signed, the deal has been made. So it is useful to remember to ask questions during the agreement terms talks. Does the consolidator charge the origination fee, can a borrower pay more without penalties, what is the maximum interest rate and what is the running time of the consolidated loan?3. The Private Loan: Do I Have To Pay During The Application?When you have applied for the consolidation, it is wise to do the regular monthly payments to the lender. This gives a good picture about your financial position and assures, that you will pay, what is needed.4. How Big The Loan Sum Should Be?Most lenders see, that the total sum of the private loans must be at least $ 5.000 before you can consolidate them into one private loan. The consolidation process for the private loan takes usually about 45 days.5. Do Not Consolidate, If It Is Not Needed.The target of the consolidation is to decrease the monthly payments and to reveal money for the other purposes. However, the longer you will pay your student loan, the more you will pay, because the longer it takes, the more interests you have to pay.On the other hand, if you will take the maximum length, and you have negotiated the terms, where you can pay earlier if you want, this gives you two options. You have more disposable money, but if you have some extra money, and if you want, you can pay more sooner, than what the terms require.

The Best Way of Consolidating Student Loans Bar None

There has been a big increase in the number of student loan being consolidated as more and more students are leaving college each year.Young people who have completed a good education are more likely to have more success in their lives. A top class job with a good salary is more likely. Most of the world are experiencing these similar trends as the U.S.A.To be able to go to college however, lots of students need some financial aid. This extra time at college or university are often partly funded by student loans. After graduation however, you will have a debt which needs to be repaid.There are places to help that process. Lots of banks and loan companies offer student loan consolidation plans. Just do a bit of shopping around.Consolidate your debt with the right one and your financial strains will be eased greatly. You can reduce the amount you pay out each month by up to 50%.Doesn’t that sound fantastic.The money saved on your loans can be used for all the pleasures that you had to forgo while you were still in education. You could celebrate with a special holiday, get a new auto or just squander it on all the utility bills. There will be the added advantage of a better rating for credit so your loan repayment term could also be extended by several years in this case.If you can start to save with the same institution, they may even offer you a higher interest rate on those savings. That means that you can actually benefit in several ways.The federal direct student loan program will probably offer you a consolidation loan with them if they hold your existing student loan. They also offer a fixed rate of interest which will be lower than with a normal banking company.So worrying about interest rates going up and the bank rate fluctuating would stop. That would make your monthly budgeting quite a bit easier.The application process is very easy as well. There isn’t an application form to complete. They do not charge you extra fees. Your credit record is not checked. It is good to know that they are there to make your life easier when you are at the turning point in your life.You might need to do a bit of investigation to find out if you chose private student loans at the out set or if the FDSLP have funded you already as a federal student loan. The information will be available if you do a bit of online surfing.There is nothing better than a student loan consolidation set up in this way.

Student Loan Debt … 5 Strategies That Work

Graduating from college is the easy bit. It’s “growing up” that’s difficult, especially when a freshly-minted graduate realizes that she’s taking her first step into full blown independent adulthood with on average $20,000 of student loan debt hanging off her neck.Student Loan “Grace Period” 6 Months After Graduation. Cleaning up after graduation parties and removing end-of-senior-year mind cobwebs reveals that each new graduate has a Federally mandated 6 month grace period in order to pay down the total student loan obligation…or to refinance the debt via a 1-time student loan consolidation.Consolidating Student Loans. Student loan consolidation involves some simple, but important rules. Only graduates can consolidate. Current students are barred from consolidating student loans.* Student Loan Consolidation Rule #1. Identify 100% of your outstanding college student loans. Why 100%? The Government only permits a 1-time student loan consolidation. Forget to include a past borrowing and you get nailed. The National Student Loan Data System manages a database where your loan history should be recorded.* Student Loan Consolidation Rule #2. Time matters. Consolidating student loans must result in your application being received on or before 30 June if you want to avoid potential interest rate increases.* Student Loan Consolidation Rule #3. Freshly graduated students are provided a 6-month grace period following graduation. Identify, say, your total Stafford student loan portfolio and then consolidate student loans in one fell swoop…and you’ll receive an instant 0.6% interest rate reduction on the balance. This discount could become serious money savings over time.* Doing The Math. Student loan consolidation is based on math…taking weighted averages of all past borrowings, then rounding up 1/8th percent to result in your consolidated student loan interest rate. All of this consolidation occurs prior to 30 June in the year that you apply.Where Are The Lowest Cost Student Loans? Thank you Big Government…the best student loans rates you’ll get are Federally issued Stafford, Perkins or PLUS student loans. Government-backed, these Stafford and related student loan borrowing plans offer lower interest rates than private market lenders can offer, along with more flexible loan repayment terms. Why? Unlike a personal loan, the Federal student loan transfers a portion of the borrower’s risk to the Government…resulting in lower-cost-of-funds.Are Personal Background Credit Checks Always Required? No. Not every student, or her parents, necessarily has the cash or good credit history to satisfy student loan lenders. The good news is that “No child left behind” and the American commitment towards higher education…enters into a marriage of convenience with profit-seeking lenders…to create a secondary market in bad credit student loans. Risk adjusted, bad credit student loans carry marginally higher interest expenses, are generally more inflexible regarding payment lapses, yet offer longer repayment terms which lowers the monthly out-of-pocket expense. Meanwhile Federal Stafford or Perkins loans are ‘credit neutral’ and do not require a credit background check in order for a student and his family to qualify.Federal Student Loans Versus Private Loan Sources – Pros & Cons. Historically, Federal PLUS, Perkins or Stafford student loans offered the most flexibility and, due to government backing, the lowest interest and repayment rates. Until 2006 Federal loans could be “variable”… where the next year’s interest rate is based on the Treasury market in a 90 plus trading period ending 1 June. The new “variable rate” becomes effective 1 July each year for all past variable rate loans. For example, 2006 Federal student loan rates for variable carried a 6.54% interest cost.* Congress Passes New “Fixed” Rate Student Loan. Because of new legislation passed by Congress, all “new” Federal Stafford loans from 1 July, 2006 onwards are now “fixed” at 6.8%.Fine Print – What’s The True Discount Student Loan? College student loan “deals” require a mix of focus and document review in order to decipher the true nature of “discounts”. As Albert Einstein opined “God dwells amongst the details” and so it applies to student loan documents.* Practical Example. For example, “discounts for on-time payments” may look attractive…but what if the interest rate deduction “reward” only occurs retroactively after 4 to 5 years? One missed payment anywhere in the time-stream and presto…the discount vanishes. Or, certain discounts only apply to portions of the loan term…in other words, you’ll pay “full rate” for substantially all of the loan life, and the discount only applies to a portion of the loan life. Result? An advertised 1.25% “discount” may actually be worth only .25% when you move through the discount analysis. A useful site for families interested in the “fine print” cost of student loans is www.finaid.org.

Information On Consolidating Student Loans

We all hear about these student loans consolidation programs, but why are so many students so drawn to it? Simply put, graduating students will be filled with debt after graduation and so the only solution is to consolidate it all. Student loans are usually quite easy to come by and they can be found at very competitive interest rates, but the most difficult part is trying to pay it off once you graduate. For this reason, many students will find that they are in a lot of debt once they graduate and they’ll even have a hard time making their monthly loan payments.People typically will have a hard time paying back their student loans primarily because they did not calculate the interest rates that they will incur and have not secured a good paying job once they graduate. It can be quite difficult to make the monthly student loan payment since there are also many other things that the student has to take care of such as auto loans and housing cost. These debt will soon take their toll and an unprepared person will find themselves in a tough financial situation. Getting a loan consolidation would probably be the only way for these graduates to get their lives back on track. These loan consolidation are often the one thing that saves students from their financial troubles.Frankly, there really is no reason why you wouldn’t want to consolidate your student loans if you are barely able to make your monthly student loan payments. By getting your student loan consolidated, you can avoid having a bad credit record because of your inability to make your monthly debt payment on time. Your monthly payments will be significantly be reduced and so you’ll have much more leftover at the end of each month. Furthermore, these loans consolidation programs can give your credit counseling advice.All of your remaining student debts will be paid off in full by the loan consolidation companies. This means that the student will no longer owe any of their current lenders, but instead will only owe money to the loan consolidation company. The amount of time that you have to pay off the consolidated loan is between 5-30 years. For this reason, their monthly payment will be reduced significantly, enabling them to be able to make their monthly payments easily.Usually these loan consolidation companies are very easy to apply for and all that they usually ask of you is that you have a steady paying job. Try to apply for these loan consolidation before you graduate. This will lessen the financial burden on you after you graduate.

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.

The Pros and Cons of Student Loan Consolidation

Most individuals leave college with huge amounts of student loans. However, repaying that debt is much more stressful than it was to receive the loan in the first place.Since about 67% of college graduates finish college with some sort of debt, there needs to be a way to help consolidate and ease this financial burden. Some believe that consolidating their loans will help lower their monthly payments and make life easier. This will not always work for all people.However, federal loans can not be consolidated with private loans, and student loan interest is now fixed. In the past, the variable rates could possibly be consolidated with lower fixed rates. Now, “there is no financial benefit to consolidating federal loans, other than having a single monthly payment and access to alternative repayment plans,” says Mark Kantrowitz, publisher of FinAid, a Web web page that tracks the college financial aid industry.If you can not make your monthly payments, consolidation might assistance you. However, it’ll cost you in the long run in interest payments. You have to weigh the benefits of lowering your monthly payments now towards longer term costs associated with student loan consolidation.Starting last July (2009), borrowers who have federal student loans can apply for an income-based repayment plan. This might be a smart selection for those entering low paying fields. This would cap monthly payments based on income.If you decide to consolidate your student loan, be sure to ask if it charges origination fees or prepayment penalties. Avoid any loan that charges a prepayment penalty. You should be wary belonging to the maximum interest rate, and the term of the loan. Also, be sure to ASK QUESTIONS if you are unsure about any aspect of your loan.Good luck!

How Consolidating Student Loans Can Be an Efficient Way to Manage College Loans

The consolidation of college loans can be a colossal lifesaver in the majority of cases. A college education is a big financial undertaking, and it is seemingly unattainable to get a degree without taking out at least a few academic loans. But, these academic loans do not have to take over your finances for years to come.Academic loans can generate huge amounts of debt that almost hits you from nowhere. It is very easy for you to forget that you are increasing your levels of debt while enrolled in the university of your choice. Most student loans are offered on what’s called an academic deferment basis, or you’re not at all required to make any student loan payment until your schooling is finished. The bulk of these loans also accumulate interest while you are enrolled in school, even as no payment is required until after you graduate.Six months after graduation, or in some cases even fewer months, your student debt becomes a reality. Loans obtained near the beginning of your college career usually feature repayment terms of about ten years, but that may vary depending upon the type of student loan debt you are paying off. Once the repayment period begins, you have to start making the loan payments in order to maintain a clean credit history, even if you have not yet found an occupation in a field that matches your degree choice.Masters, doctorates, med school and law degrees include some of the most expensive types of career paths. In these fields of study, you could quickly and easily find yourself in debt tens of thousands of dollars consisting of financial aid and interest by the time you graduate and begin working in your desired field. In the case of doctors, you will likely be required to start the repayment process on your student debt before completing your residency requirements. Additionally, law graduates are also expected to begin the repayment process upon completion of law school, and this holds true even if they have yet to take the state bar exam. So, you will in most cases have to start the repayment process on this considerable amount of student debt long before you’re realistically earning enough money to do so.The only way to help make student debt more manageable is by combining your debt into a single loan. Consolidation of student loans makes your outstanding student debt far easier to manage. The lending institution that consolidates your student debt begins by buying up all of your college debt. In other words, the lender is forgiving the student loans for you. This debt is then handled as a single, lump sum consolidation loan which you are obligated to payback in reasonable increments.Not only will loan consolidation make your monthly payments far easier to manage, consolidation can also reduce the total amount paid on your student loans. More times than not, consolidation loans feature lower interest than at least some of the previous student loans. Additionally, you lower your risk of getting several finance charges and past due fees that can add up very quickly if not noticed immediately.

What You Need to Know Before Consolidating Student Loans

If you can’t keep up with your multiple college loan debts, consolidating student loans might be the best solution to your problem. But before you go for this option, it is wise for you to know not only the good things about debt consolidation. You must take time to know the bad points as well.As with any other decisions you make, knowing the pros and cons of the solution you choose will prepare you for any consequences and prevent you from regretting your actions later. What are the things you have to know about consolidating student loans?Let’s start with the good things first:- Your monthly payment dues are reduced and your payment term extended- You only get to pay a single loan every month so you don’t have to worry about paying off multiple lenders- You get to lock in on a lower interest rate that is fixed for the rest of your loan’s tenure- No credit checks, no bank fees, no prepayment penalties- You can consolidate your debts with those of your spouse’s or partner’s for lower and more affordable repayment process- You can choose which loans to consolidate together and which ones to leave outWhat are the bad points of consolidating student loans?- You will end up paying more than your loan’s overall cost because of the extended payment term- If you choose to consolidate your federal debts with private debts, you will lose helpful incentives like forbearance and cancellation options or loan forgiveness- New loans can’t be consolidated with older ones- Debt consolidation voids the grace period: this is if you consolidate within the grace period – you will be required immediately- Since your interest rate is fixed, it cannot be adjusted in case prevailing rates go lower

7 Essential Student Loan Consolidation Rules and Regulations You Should Know About

When consolidating student loans, it’s important to know what you’re getting into first. As with any financial decision, you must do your homework before signing on the dotted line. Consolidating student loans is not a difficult process, but there are several rules and regulations in place that you must know before deciding to consolidate your student loans into one easy to manage loan. This is a list of some of the most important rules and regulations pertaining to student loan consolidation. Make sure you understand each of these rules before going through with the consolidation loan.Student Loan Consolidation is FreeObtaining a student loan consolidation loan is a free process, so never pay a fee for consolidating. If the lender is charging an upfront fee to consolidate your student loans, it’s most likely a scam and you should take your business elsewhere. This scam is often referred to as an “advance fee loan scam”, and it’s relatively common in the student loan consolidation world.You Cannot Consolidate While Still in SchoolYou may consolidate your student loans only after your loans enter their grace period, which is six months after graduating or dropping out of school. You can also consolidate once repayment of the loans begin, although you should consider consolidating before that point. It may not be beneficial to everyone, but it’s definitely worth taking a look at the numbers to see if it would save you money and make your loans easier to manage.You Can Only Consolidate Student Loans in Your NameThis rule seems pretty obvious, but in some cases where the student is married or has their parents’ name on any of the student loans, it may come into play. Students and parents may consolidate their student loans, but they cannot combine them into one consolidation loan – They must be separate. Same thing holds true for married students who both have student loan debt. As of 2006, married students cannot combine their student loan debt into one consolidation loan – They can, however, each have their own consolidation loan.Student and Graduates May Consolidate With Any LenderThere are no restrictions that limit which lenders are eligible for consolidating student loans, so you may choose whatever lender you wish. This allows you to shop around for the lender with the best interest rates and incentives. Keep in mind that most lenders require you to have a minimum balance totaling $7,500 or sometimes higher.Any Federal Student Loan is Eligible for ConsolidationAny type of federal student loan can be consolidated, including single student loans. That being said, you can only consolidate an existing consolidation loan one time, but not in every circumstance. In order to reconsolidate a consolidation loan, you must add a previously not included student loan to the consolidation. In this case, your interest rate would be reconfigured using a formula to weigh the old interest rate with new rate brought on by the student loan being added to the mix. Please note that a student loan consolidation loan uses a weighted average of all of the included student loans to determine the overall interest rate – Reconsolidating in future will not completely reset your interest rate.Consolidation Loans Offer Longer Repayment TermsFederal student loans feature standard 10-year repayment plans. When consolidating student loans, you can extend these terms to 12-30 years depending upon how much is owed. As with any loan, though, it’s not recommended to extend the terms of the loan, because interest charges will be greater the longer the loan exists. It’s recommended to pay off the loan as soon as possible. That being said, extending the consolidation loan repayment plan can help people to better afford the lower payments brought on by a longer repayment plan.There’s No Prepayment PenaltiesYou may pay off your student loan consolidation at anytime without any risk of prepayment penalties. I highly recommend paying off the consolidation loan as soon as possible to avoid some of the interest charges and to relieve yourself of the financial burden as quickly as possible. Just make sure that when making additional payments each month, you inform the lender that the additional amount should go towards the principle of the loan rather than future payments.

The 5 Private Student Loan Consolidation Tips

It is important to note, that the same student loan consolidation can be done only once to the same loans. But if a student will continue studying and takes a new loan, then he or she can do the student loan consolidation once again.1. The Private Loan: Removal Of A Co-Signer.The private student loan consolidation gives a possibility to free a relative or a parent from the position of the co-signer. This is possible after 24 to 48 months after making the regular payments.2. Useful Questions To The Consolidator Of The Private Loan.After a borrower has signed, the deal has been made. So it is useful to remember to ask questions during the agreement terms talks. Does the consolidator charge the origination fee, can a borrower pay more without penalties, what is the maximum interest rate and what is the running time of the consolidated loan?3. The Private Loan: Do I Have To Pay During The Application?When you have applied for the consolidation, it is wise to do the regular monthly payments to the lender. This gives a good picture about your financial position and assures, that you will pay, what is needed.4. How Big The Loan Sum Should Be?Most lenders see, that the total sum of the private loans must be at least $ 5.000 before you can consolidate them into one private loan. The consolidation process for the private loan takes usually about 45 days.5. Do Not Consolidate, If It Is Not Needed.The target of the consolidation is to decrease the monthly payments and to reveal money for the other purposes. However, the longer you will pay your student loan, the more you will pay, because the longer it takes, the more interests you have to pay.On the other hand, if you will take the maximum length, and you have negotiated the terms, where you can pay earlier if you want, this gives you two options. You have more disposable money, but if you have some extra money, and if you want, you can pay more sooner, than what the terms require.