Student Loan Consolidation – Why Not?

You hear commercials about consolidation loans all the time on the radio and see them on TV. These are usually ads for debt consolidation loans that are typically used to consolidate consumer debt, such as credit cards, car loans, or store charge cards. The main advantage here is that you can replace many high interest loans with a single loan at a much lower interest rate. The disadvantage is that you have to put your house on the line as security for the new loan.That’s where student consolidation loans differ from standard consumer debt consolidation loans. Because most student loans are insured by the federal government, you are not required to use any security in order to consolidate them. You do however, get the same advantages you get with other consolidation loans; lower monthly payments and more convenience because you’re replacing many loans with only one. Therefore, you’ve got fewer possibilities for errors that can cause late or incorrect payments.A major difference between consumer consolidation loans and student consolidation loans is that, in order to consolidate student loans a credit check is not required. In fact, the process is relatively easy, and well worth doing, as there is basically no down side. You get all the advantages of consolidating consumer loans without getting a credit check or putting up a home or other real estate as collateral.According to recent government statistics, the average undergraduate college student now graduates with approximately $27,000 in student loans. This is because the dramatically increasing cost of a college education. This trend towards higher education costs is showing no sighs of slowing, so in the future students may have even a higher loan burden upon graduation. If that proves to be the case, the demand for student loan consolidation, and the payment relief it provides can only grow.

Free Government Debt Consolidation Loans – Federal Bailout Money to Eliminate Your Credit Card Debt

If you have been in the habit of depending on credit, your debts will eventually mount to unmanageable levels. This is one of the worst problems you can get in that also ranks among the leading causes of stress and physical health breakdowns. It may also lead to the loss of some important physical assets such as your home, job and car. However, the Obama administration has done it once again by setting aside funding that is aimed at helping out those who have struggled with debts for too long. This means that you may be one of the lucky ones who will qualify for this help that will restructure debts and the repayments of these debts. Certainly, you can be sure that this will relieve some of your stressful predicament.You can access online agents of the government who are trained so that they will be able to advice you regarding some of the available options – this will depend on your particular situation. You just need to go online in order to get in touch and you can be certain that you will find a professional who will discuss the options that will help you deal with those you owe. For instance, you can pay off current debts using consolidation plans which will simplify your repayments down to a single monthly payment that you will find easier to manage. With your agent, you will be able to arrive at the best course to take in this matter. Normally, creditors will be paid the entire balance though this balance can also be negotiated to some lower amount.One of the many government services for debt relief is the DOE (Direct Loan Consolidation) program, which was set up as part of the American Recovery and Reinvestment Act of 2009. The DOE can consolidate and even eliminate a large portion of your credit card or mortgage debt. In case several creditors demand repayment from you, this program will pay them off. It will also negotiate a payment plan using some lowered interest rate. Such lower payments and interest rates will enable you to undertake to repay your debt quicker using extra money hence you can be certain that you will soon be debt free. You will also benefit by increasing your FICO credit score, which can save you even more money by lowering interest rates for any future credit cards or loans you receive.

Do Debt Consolidation Loans Affect Credit Rating?

Debt consolidation is one of the most widely used methods of financial rescue, but also the one that has probably the most myths surrounding it. Many people talk about debt consolidation and offer differing opinions about it. One of these myths is that debt consolidation hurts your credit rating. In fact, that could not be further from the truth. It is far more likely that getting a loan, if you don’t want it to hurt your credit score, then it won’t.There are a number of ways that a consolidation loan can help your credit score. The first of these is the simple fact that you are doing something to try to be able to pay off your creditors. Your scoring is a number that basically condenses how likely a creditor is to get back their money, as a way for them to calculate the risk inherent in lending to you. Your credit score may not explicitly reflect that you are trying to pay off your creditors, but that will show up as a positive on a comprehensive credit report that many creditors ask for, when deciding if they will give you a loan.There are also a number of miscellaneous things that are affected by getting such a loan. For example, you are closing a number of lines of credit, which alone will help your credit score, as each open line of credit “pings” your score for a little bit.Credit counseling can help too, which many consolidation companies offer. The only thing involved in consolidation that could possibly hurt your credit is if your consolidation company offers a debt settlement service, which you can probably refuse if you don’t want to hurt your rating. You should note, however, that settlement will reduce your debt and, therefore, your debt to income ratio, so it too could possibly help your credit score. But if you wish to be safe, it is possible to ensure that your credit score will not fall at all from a consolidation loan.By the way, there certainly are reputable debt consolidation companies in the market, so you must research and compare several services in order to to determine the one that meets your specific financial situation, plus the cheaper interest rates offered. Nonetheless, it is advisable going with a trusted and trusted debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.

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.

Consolidation Loan to Get You Back on Track and in the Black Instead of Being in Debt

This may seem like an impossible mountain to climb and sometimes you may think to hell with it. This is not the way at all as you will lose everything in the long-run. What you need to do is sit down and take a good long hard look at your incoming money and your outgoing money. This is often a hard lesson as you will see where money is being wasted and we are all guilty of that. It is scary to see how much the lunch at work with a coffee builds up over a few weeks into a tidy some of money spent for no gain. I would advocate being really honest with yourself and write down how much you spend and on what every time you get your wallet out. One way of potentially halving what you pay out in interest charges is by taking out a big loan to pay off all your little ones. This is called a consolidation loan and it really does work because instead of needing lots of different payment options you would only need to manage one payment.Most money lenders will be quite happy to be getting some money from you and honesty with them is the absolute best policy as they want their money back and will try to help you out if you are honest with them in the first instance of you getting into a bit of trouble. A lot of money lending companies know that once you have a bad credit history then it is an uphill task for you to get more money. Some lenders will actually look into your history and circumstances then make a decision on that as to whether they lend you money. Do not give up if you get into trouble as some honest thinking about your spending and telling the financial companies what is going on will help to get you out of trouble. They will probably call you in and go through various methods of getting yourself back on track and a consolidation loan would be one of the best options to go for.

Thoughts on Paying For College Beyond Just Loans

You’ve made it through all of it – high school, prom, applications – and now you have finally been accepted into the college of your dreams. Move over mom and dad, it’s time to hit the college road. The only question now is, how do you plan to pay for your education?If you are like most newly accepted college students, you probably plan to apply for a number of student loans in order to help with those payments. And, let’s be realistic here. You probably plan to go for the maximum amount of money just in case you have to spend a bit on, um, books.While this strategy is one that is adopted by nearly every college student on the planet, more students than ever before are graduating with a boat load of debt. How much debt? Roughly seventy percent of all college students these days rack up around $20,000 worth of student loan debt.This number may not seem like much to you now, but it will seem like a lot when you start getting those repayment bills four years from now. Four years seems like a long way away, doesn’t it? Make no mistake about it, those four years fly by far too fast leaving you with a lot of hefty bills.So, how can you avoid this horrid fate? Well, choose your loans (and loan amounts) wisely. Should you have any amount of money currently save up, use this money to pay for some of that tuition prior to applying for loans. You may be a bit skeptical about spending this money on loans, but it is worth it.Should you have a decent job that you plan to hang onto in college, try and pay for your courses one by one without applying for loans. If you are spending your pay check as soon as you get it, now is the time to realize that you must start saving some of that money.You’re young, free, and ready to experience life, so you don’t have to save all of the money that you work hard for (after all, you do want to enjoy those college years too). Still, save enough to cover your courses, books, and tuition if you can. This way, the accrued debt will be a lot less when you graduate.It may be hard to think of those inevitable student loan bills now, but when those four years are up you will be glad that you did. Enjoy your college years, get a great education, and find a superb job that you love. Just don’t wind up owing more than you can handle when you graduate.

Student Loan Consolidation Program – A Simple Way for College Debt Relief

If you are in debt of multiple loans and want to consolidate them to one loan, then getting familiar to student loan consolidation program can help you a lot. Many students need financial support for their higher studies, which they can afford to pay back once studies are completed. Managing multiple loans is obviously a difficult task and could sometimes lead to late payments or even missed payment; this can result in giving a bad credit name to you, which might affect your future borrowings.Application Processing and the Interest RatesStudent debt consolidation accumulates all your outstanding loans and forms a single loan. The interest rate calculated under student loan reduction program will be less than what you were paying before. The rate is low and fixed for the time till the loan exists. This gives several benefits to the student, attached with the consolidation program that includes low interest burden, less hassles, and good credit rating.Student debt consolidation application can be applied online and there are number of institutions offering college loan consolidation programs. So, you can choose among them, depending upon the offers and services they are providing as per your choice.When And Who All Can Consolidate Loan?Student loans can be consolidated any time during your six-month grace period or after the repayment of the loan has started. If in case the loan is consolidated during your grace period, then you might loose the advantage of getting a low interest rate. However, since you will lose the rest of the grace period, it is recommendable to wait until the fifth month of the grace period before consolidating. The overall student loan consolidation program usually takes 30-45 days to get completed.Further, your spouse and your loans can also be consolidated together, but it is not very much recommendable, because by any chance you both get separated in future then also both of you will be responsible for paying it together, and if defer payment on the student debt consolidation loan is preferred then you both have to meet the deferment criteria.For the payment of the student loan consolidation amount, there are many payment plans and the students can choose from them as per there convenience. For any assistance, you can choose Student loan debt counseling, which can help you in deciding. Students can either choose standard payment of set monthly payments, variable plan where the payments can be changed as your income increases or decreases, graduated payment plan in which you have to pay low monthly installments in the beginning and then it gradually increases, and the last is extended payment plan, which allows you to reduce the monthly payment by extending the loan payment period.

Bad Debt Loan – How To Select Your Options?

If you have bad credit history and looking for bad debt loans, then I feel this article will help you a lot. Here, we will discuss specifically about your options, advantages and disadvantages as well as care which should be taken while applying for bad debt loans. After reading this article, you should be able take informative decisions as far as loans with bad credit are concerned.So, what are the options are available to you if you have bad credit history?First of all, if due to any reason you have bad credit history and now want to take a decisive action on your finances then don’t worry; now you have many options which are available in the market for you. Many financial institutions, government as well as private are giving bad debt loans to people having bad credit history.What types of loans which are available for you?There are mainly two types of loans which are available to you.1.       Unsecured debt consolidation loans2.       Secured debt consolidation loansWhen it comes to secured loans, I can say that these loans are easiest to get as your one of the assets like home or car will act like collateral for the bank. Due to the secured nature of the loan, you get your consolidation loan at very low interest rates. These loans are available for 5 to 25 years.Unsecured consolidation loans are also available to people with bad credit. However, these loans are available at much higher interest rates than a secured one. These loans are available for 1 to 10 years only.Is there any other option available to you?Yes, there is one more option where you can take help of debt consolidation companies. These companies often have very close relationship with major financial institutions. When you approach these companies for your loan consolidation, they talk to your bank or your credit card companies on your behalf and negotiate a much lower amount which, you need to pay at very low interest rates.Although, there is one caution!You should be careful about the authenticity of the debt consolidation companies with which you are dealing. You should disclose your financial condition before them only after proper investigation. Many companies will charge you a nominal amount to consolidate your debts. But that is well worth as long as your debt situation is in your control.I can assume now that you will take a good decision for your bad debt loan. These loans are also available online. You should apply for your debt loan consolidation as soon as possible to avoid further debt burden and stress from your life.