The cost of education today is several times greater than many years ago. The value of everything has become more expensive. More and more people are finding it difficult to get hold of these kinds of goods and services because they could not afford them. There are still many college-bound high school students who make sudden changes in their college dreams once they learn about the cost of tuition fees and other education expenses. This is a very sad scenario, right?Good thing, students can apply for any private loans offered by schools and other private companies. They will definitely be a great help to achieve any kid’s desire to get a degree. But after graduation day, what do students with multiple loans have to do to easily pay off their debts?A private loan consolidation is a service that ensures stress free and hassle free repayment methods for any student. It will merge all the private student loans that you have into one, which will make paying off simpler and easier. It can reduce the amount that you need to pay monthly. It can save you money because it can lower your interest rates too. It can make sure that you are able to pay the required amount every month, because it extends your repayment period over a longer period.Apply to a private loan consolidation program that expresses genuine interest in helping you out. Study the company’s terms and conditions, rules and regulations, and interest rates. Nowadays, online consolidation services are already available, so you can also go that way if you prefer those.Probably the best time to get into private loan consolidation is immediately after graduation or during the grace period. This is when you can avail of the best rates. So select a program that will best suit and provide your needs.
Student loan consolidation is a debt repayment solution that most borrowers opt for however what most of these people don’t know is that there are disadvantages that come with this option. What are these?One main disadvantage is that though you may be paying lower monthly interest rates when you consolidate your educational loans, these interest savings may still be eaten up because you are losing on discharge benefits.Also, you are most likely to lose borrower’s benefits that apply on your individual loans if you opt for student loan consolidation. These borrower’s benefits include rebates and interest rate discounts. Such benefits can actually cover for the low interest rates that usually come with college educational loans so it is better to weigh all available options when repaying your debts.One more disadvantage (though this affects very few cases only) is that repayment of college loans through consolidation can end up more costly than when done the ordinary way. The interest rate of consolidated loans is the average of all individual loans. If one loan has a high interest rate, this may end up increasing the overall interest rate that you will be paying.Your personality can also affect your loan repayment choices. Having several outstanding debts ranging from mortgages, credit card loans, health insurance loans, etc. may render you incapable of coping with the necessary commitments of eliminating your debts all at once. Make sure that your other loans can be consolidated with your college loans in a beneficial way should you prefer this method of repayment.Some student loan consolidation plans also have pre-payment penalties so avoid these types of plans. Also, to avoid extra payments in the future, make sure that there are no penalties involved in case you default on payments which may happen in case you lose your job or source of income.
Many students will bear witness that, in more cases than not, one will need to apply for a student loan to cater for tuition fees through their college studies. It has become relatively easy to acquire these loans, bearing in mind that many financial firms have been set up with the aim of bailing students out of financial difficulties. On the part of the student, one needs to keep in mind that repayment of the loan may not be as easy as borrowing it. This is why there is need to come with a strategy on how to manage the loan. The strategy should be formulated while one is still in college instead of waiting until when you are hassling to get a job.Remember a few things about your student loan:1)The repayment period for your loan greatly depends on the amount of money that you have borrowed. Some take even up to 30 years to repay, and it is therefore up to you to be financially responsible, so that you can clear off the debt within the shortest time possible.
2)The sooner you get your loan cleared, the lower the interest you will be subjected to. These are terms that you can get to agree on with your lender the moment you sign up an agreement for the loan with them. This is to say that, for you to be able to effectively manage your student loan, you must do a lot of hard work as you set out to look for a lender.
3)Getting a lender who will give you favorable rates, terms and conditions for the loan is not very easy and you must shop around, online or otherwise.For some tips on how to manage a student loan remember:1)It is always advisable to go for financial counseling before signing that loan agreement with any lender. The more knowledge you can gain regarding borrowing and repayment, the better placed you will be to prepare yourself for the task ahead.
2)Once you are through with your college education and it is time to start repaying the loan, calculate just how much you will need to pay every month and start keeping this money aside every month without failure.
3)If the minimum amount required by the lender is not affordable, look for other repayment plans that are available. Among them is the student loan consolidation plan.Student loan consolidation will be effective for you if you owe multiple lenders. Consolidation always ensures that you repay at cheaper rates, consider this option if you have a federal student loan. If possible and in order to reduce the risk of forgetting to make a payment, make your repayment automated. This is to say that they will automatically be deducted from your account on the due date every month. Automated repayments will also earn you discounts on the interest rates. To manage your student loan even more effectively, please make sure that you notify your lender when you are faced with an economic hardship that makes you unable to repay. If not be prepared to be slapped with a penalty fee for default.
If you are going to graduate school you have many things to consider besides studying for the GRE and choosing the location and area of study that will probably determine the remainder of your life. You additionally have to make sure that you do not fall to far into debt after college. Therefore, you must research student loans. Student loan consolidation is one of the best ways to save money because you are only required to pay your loans back in small increments. You can also look into federal and private student loans, which come with pros and cons.If you have a private loan, a borrower can take out more money but may pay it off at a higher rate. In addition, private lenders are entitled to their own regulations, whereas federal loans are openly operated by set government standards. One example of discrepancy in these programs is the responsibility of private and federal loans during times of economic hardship. If a borrower cannot make a federal student loan payment, he or she can defer for up to three years.There is one big problem that usually happens when someone overlooks the difference between federal and private loans. Federal student loans are guaranteed by the federal government.Consequently, federal student loans carry a fixed interest rate of 6.8%. Though the fixed rate may fluctuate yearly, a borrower has the opportunity to lock it in. When it comes to private loans, there is not a cap on the interest rates and fees lenders can charge-as a result, unsuspecting borrowers find themselves buried in debts larger than anticipated. Often times, students think that mass amounts of money cannot be consolidated along with his federal student loans because the predetermined amount was from private student loans.Because college students are known for procrastinating, on occasion, college students might find themselves accepting student loan offers without doing much research on them. It is a resounding sigh of relief to have the costs of education temporarily funded; but when the tassels are moved and the diplomas are mailed, several graduate students discover that they should have learned more about their student lending. Keep in mind that private loans do serve an effective purpose.It is becoming more common for families to find themselves relying on them to make college educations possible.The largest reason private loan lending grows every year is because some students take out the ceiling of Stafford Federal Student Loans and still fall short of meeting their expenses. Do not let the process of loans be intimidating. As long as you take a minute to do some research, you should find a student loan that will be conducive to your future financial needs.
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 consolidation interest rates are very competitive and vary considerably from lender to lender. Loans for student consolidations can be obtained from the government, and also through private lenders. There are quite a few choices when it comes to picking your lender and type of consolidation loan, so it definitely pays to shop around.Consolidating your student loan payments can help you to get your finances under control. It can save you money, since you’re paying a high interest rate on several different loans. When you consolidate, your interest rate will be lower, but the life of the loan might be longer too, so the total amount you repay could increase.It’s very important in today’s world to attend college and get a degree in order to obtain a good job and be competitive in the work force. Unfortunately, with the high cost of education, the bills really add up quickly. Many people have to take out student loans just in order to be able to afford to go to college. It’s a very common practice in the United States today. The drawback is that upon graduation, you’re faced with a huge pile of debt you need to pay off over the next several years.When faced with such a huge financial burden, it’s in your best interest to shop around for the best student loan rate you can find when you’re ready to consolidate. To find the best rate, you can do searches on the internet. You can also ask someone at the financial aid office of your college for more information on student loans and paying them off. They should be able to give you some sources for consolidating. If you do this while you’re still a student, you can probably get a grace period of a few more months until you start repaying your loan.Finding the best student loan consolidation rate will help you to get the lowest monthly payment possible for your particular situation. The lower your monthly payment becomes, the more money you will have left over for other expenses and entertainment (like drinking at wild parties, etc) each month and the easier it will be for you to keep up with your payments. This will help keep your credit rating good. Plus it’s simply more convenient to make a single payment each month instead of several.When you consolidate your student loans, you’ll likely be doing so for a period of several years, so you want to be sure to get the best rate possible, so that you don’t wind up paying more over the life of your loan than necessary.
Americans are in a heap of debt trouble today. According to the American Payroll Association:”67% of Americans would find it difficult to meet their current financial obligations if their next paycheck was delayed for one week.”You heard it right. Americans are living from paycheck to paycheck, feeling faint whenever delays are inevitable. With this grim picture in the background, where is the space for savings? For good and profitable investments?Inevitably, living from paycheck to paycheck means there are debts to be paid- and this is when private loan consolidation and other measures appear.Paralyzing DebtsDebt, like a silent tumor, begins slowly enough. Take the case of Lisa and Wade Norwood of Rochester, New York. Lisa shares that:”Our problems started when we began living beyond our means on credit cards. We admit to not managing their money well in the past but we are making an effort to spend less, but the recovery process has been slow, and we still find ourselves strapped for cash each month.”Wade and Lisa have $43,000 in mortgage, and they have an annual expenditure of about $15,000 on household items and food. Their problem is not uncommon, and is fast becoming the staple tale of young families and even members of the more advanced generation.The Expert Comes InWith the Norwoods as our particular case study, let’s listen to a financial advisor see what he makes of the situation. According to Herb White, a certified financial planner and managing director of Colorado-based Life Certain Wealth Strategies:”The Norwoods should consider joining a credit union and taking out a private loan consolidation to lower their monthly fees. Although private loan consolidation seems like a cure-all, there can be drawbacks. Borrowers with very high debt may not qualify for the lowest interest rates, which are usually given to those with excellent credit.””However, this option will work for the Norwoods because they have paid their cards in full and on time for more than a year. And if they take out through a credit union, they can benefit from lower rates.”Getting to the Bottom of the ProblemSometimes, even the best private loan consolidation cannot solve bad “money manners”. If you are a spendthrift, your money will be obliterated. It’s that simple. According to Daisy Reese, a director at California-based Insight Financial Group and co-author of True Self, True Wealth: A Pathway to Prosperity:”We all carry messages about money we learn as children. Most people act out one of 10 money scripts: co-dependent, coupon clipper, craver, gambler, hoarder, masquerader, power player, prince or princess, procrastinator, or victim. The Norwoods were operating under the co-dependent and the masquerader scripts. Co-dependents tend to put others first, while masqueraders typically desire to win admiration.”As you can see, the ten money scripts above can be applied to anyone with money problems. To get to the root of the problem, you must be able to identify who is ruining your finances at home. That way, all your efforts at saving money and investing will not go to waste.
A study by the National Post-Secondary Student Aid reveals that the average student debt is $23,186 after graduation. In addition, college students are likely to have multiple student loans that they must start paying back upon graduation. Federal and private student loans can be consolidated into a single loan, necessitating only one monthly repayment. There are advantages and disadvantages when you decide to consolidate your student loan.Advantages of Loan ConsolidationConsolidating your student loans simplifies your finances. You will only have to make a single repayment each month, making it easier to keep track of your payments. You will be less likely to forget making payments on time. Keep in mind that late payment charges eat up a lot of cash.When you consolidate your loans, you may be able to lengthen the term of the loan. This will make the monthly repayment amount much smaller and more affordable.You may also be able to ask for deferment and forbearance. This will allow you to delay payment for up to three years in the event that you cannot find work. Other factors such as illness, financial hardship or going back to school can be a basis for loan deferment.Disadvantages of Loan ConsolidationAs a rule, you may be able to get a lower interest rate when you consolidate your loan because the total principal amount will be high. However, this is not necessarily true for those who have federal student debts, especially if the loan is subsidized.It will be difficult to consolidate student debt if you have poor or no credit history. If you have bad credit, you won’t be able to borrow money unless you have a cosigner who will be financially responsible for your loan in case of default. A cosigner with excellent credit is also necessary if you want to get the best possible terms on your loan.College students with federal student loans may be eligible for debt forgiveness programs if they happen to work in certain public sectors such as the military, nursing or teaching. This opportunity will be lost if you consolidate your loan. Also, college students are usually given a grace period of six months after graduation before they have to start paying back their loans. This grace period may be lost in the event of loan consolidation.Your finances will be greatly simplified if you consolidate your student loans. Just make sure that the benefits you get far outweigh the disadvantages.
As recently as January 21, 2009, CTV News reported that “Canadians who have pursued post-secondary studies now owe the federal government $13 billion in outstanding loans, according to new figures from the Canadian Federation of Students.The CFS says Canada Student Loan debt increases by $1.2 million per day and will cross the $13 billion mark on Wednesday.”CFS national chairperson Katherine Giroux-Bougard told CTV that “the government must do more to help stem the growing levels of Canadian student debt.” She added, “What the priority of the government should be is really to make post-secondary education affordable,” she said.Now the scary part is that all we keep focused on is longer finance terms. Here’s my simple thinking: Why doesn’t the government offer companies who hire these debt-laden students, a specific tax break. As part of the hiring process, companies could assume part or all of the student debt. The companies are after all the ones who gain the most in hiring these highly educated people. They should play a role in the debt financing as well. We used to fund apprentice programs remember or am I showing my age? Don’t answer that.It solves many issues. Instead of the government just backing loans and extending payment terms, let’s transfer the debt to the companies who benefit the most, through a specific tax break. It will essentially free up government from backing loans, and free the student from a rather unrealistic debt. Now I realize this just seems too easy, but then again, we really seem to always make it more complicated that it has to be.Some employers still assert that they like their employees to be in debt, that means they need their job more. This of course is old fashioned moronic thinking! More modern companies want to see their employees flourish and enjoy the good things life has to offer versus having to have a night job and work weekends just to barely keep up. A happy employee becomes an inspired worker who gives and achieves more. But this is reserved for the very special few employers who look at their employees through a holistic looking glass and not some tired old sweat shop mentality.Okay have I stepped over the line here? Well at least it got you thinking. Whether you agree or not, I think you will concur that we simply can not lose sight of what these students mean to our future.You know $13 billion in student loans is only the tip of the iceberg. Look at the transfer payments that provincial governments already give to post secondary institutions. The U of T alone gets almost a billion a year, from the province of Ontario to offset their tuition costs. And these huge transfer payments happen every year!
Credit card debt consolidation may be the only viable option to getting out of credit card debt. It’s not hard to get into debt if you just go out and spend money on credit without thinking about how you’re going to repay it. All of those plastic credit cards are a disaster waiting to happen if you don’t have self-control over your spending habits or the ability to repay your debt quickly.It’s not difficult to get stressed out or even feel hopeless when those monthly credit card bills show up in your mail box every month without fail. The problems begin to mount, however, if you do not pay the credit card balance within the grace period (usually less than 30 days) and have to pay an interest fee on top of the principal repayment. The total debt grows every month when you don’t pay all the interest due in addition to reducing the principal debt each month.An individual cannot continue to treat the credit debt problem without reducing the debt amount on a regular basis. There is help around the corner if you’re willing to consider the optional method. It’s called credit card debt consolidation. This is a method of taking charge of your debt problem and reducing it gradually over time with lower monthly payments.Financial institutions created the credit card as a method to earn a fee on consumer purchases financed by short-term loans. It was an alternative to the “lay-away” process used extensively by many retail stores in the 1940s and 1950s. The credit card process was a blessing in disguise for many consumers that had the financial ability to pay off their credit purchases in a relatively short period of time.Credit card debt consolidation involves the process of setting up one single loan to pay off all the individual credit card bills. There are two consolidation methods available depending on the financial institution you deal with. Method one requires setting up an unsecured (less likely) consolidation loan to replace the multiple unsecured credit card balances. Method two requires setting up a secured (most likely) consolidation loan to replace the unsecured credit card balances.A secured loan requires that an asset (usually a house) be used as collateral for the loan in case you default on repaying the loan. The secured loan enables you to replace the multiple high interest credit card costs with a lower interest and lower monthly payment. Credit card debt consolidation is a much better process of paying off those ugly debts than suffering each month with the multiple credit card bills.If you have a severe credit debt problem that has gotten worse over time, you are a prime candidate for credit card debt consolidation loan. There are many financial institutions that offer consolidation loans if you meet certain criteria and have valuable assets (e.g. a house with equity value) that can be used as collateral for the loan. You can research the types of consolidation loans available by getting information through online Internet searches. You need to make certain the interest rate is low and the monthly repayment (interest plus principal) is within your financial ability.