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.
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.
Student loan consolidation rates are often among the very top concerns of someone who finds themselves under the load of numerous debts and loans they’ve taken out to get an education.While I won’t argue that it shouldn’t be a major concern, before I go on, I do want to simply point out that the monthly payments, the length of the loan and any terms or fees should also be factored into the decision to consolidate your student debts into a single loan.Many factors figure into student loan consolidation rates. Is the loan a private loan or is it backed by the Federal Government? Generally you don’t want to combine these as the terms and rates of federal loans are much better than private loans. Which Federal loans you have, or are applying for are also a factor.In the past, a Stafford loan, for example, had an adjustable formula to determine it’s rate. It was tied to the treasury bill, but starting in 2006 a rate of 6.8% became the fixe rate. In today’s climate, many providers of loans will accept a lower margin on the rate than the Federal government entitles them to. They will offer a lower rate in the hopes of attracting your business. It’s impossible to give exact figures as student loan consolidation rates constantly change, just remember that it pays to do your homework and shop around.Also be aware that your credit history can be a big factor in many, but not all loans. Some lenders will offer a break or incentive based on a better credit score. If this is an issue for you, you may want to look for lenders like Stafford that do not base student loan consolidation rates on your credit history. These loans tend to be based on conditions of need rather than credit score and ability to pay it back… for many this is their best bet.Another factor or issue to consider is the “origination fee” that may also accompany the issuing of a student loan. Some institutions may charge up to 4% of the loan total, but in a competitive market may will offer a lower rate. In the case of Federal loans, a portion of this fee goes back to the government to reduce the over all cost of loans. Once again, it pays to shop around as these rate can vary greatly.Beyond the upfront terms and fees, you’ll want to consider what many would call “the small print” in student loan consolidation rates. What sort of fees are charges if you make a late payment? What is the grace period before a collection fee is imposed? If you have a history of struggling with making payments on time, or find yourself in unfortunate circumstances financially these issues can be very important to thing about.Remember that these are not grants and must be paid back. Failure to do so could have real and significant consequences for your financial future. This could affect not only the rates of your student loans, but the rates of any credit you may wind up needing as you progress through life.
Private loan consolidation can be a very wise move. Whether you are seeking to combine private student loans or find yourself overextended and looking for payday loan consolidation, we’ll try to help out and steer you in the right direction.Let’s begin with private student loan consolidation as that seems to be were the majority of the need arises. First be aware that private student loans cannot, in general be combined with federal student loans. Federal consolidation loans, with their very low interest rates do not extend to private educational loans. However, there are a number of options for those who seek the refinancing of private educational loans.An important factor to be aware of is that most educational loans in the private sector do not compete on price or the interest rate. In most cases the real benefit of a private loan consolidation is simply having a single monthly payment… and since the term or length of the loan is reset, you may indeed wind up with a lower monthly payment. Do remember, however, that just because you are reducing your monthly payment, you may wind up actually increasing the total cost of the loan by extending the length of time it takes to pay off the total balance.There may be good news however. The interests rate on most private student or educational loans is closely tied to your credit score. If your credit score has significantly improved since you took out your original loans there is a good chance that you could qualify for a better rate. If your score has not improved, it maybe worth your while to work on your credit score before you look at combining your loans.Let’s say that you’ve graduated and now have a good job. You haven’t been burdening yourself with a lot of extra debt and your credit core has continually risen. At this point, if you are seeking private loan consolidation, you will very likely qualify for a much better rate. Even if you wind up not being able to consolidate, you should try to negotiate with your current loan holders to see if they will lower your rate rather than lose you to another lender. ( It doesn’t hurt to bluff a little in these negotiations as long as you keep everything truthful. Never lie, it could easily come back to bite you.)Another option for consolidation, if you are fortunate enough to qualify, may be a home equity loan. Even if the interest rate of your private educational loans are not that much more than that of an equity loan. Trading a variable rate loan for a longer term fixed rate could be a huge advantage.In general you should not consider consolidating your federal student loans with private loans. It is wise to keep them separate simply because federal consolidation loans have better benefits and lower interest rates when combining federal student loans.Here is a short list of some of the better known educational lenders who will consider consolidation of private educational loans. Be aware that here the interest rates are set by the lender here, not the government. There may also be fees for originating the loans. Be sure to ask whether the interest rate is fixed or variable, what fees there may be, and if you want to pay off early, are there prepayment penalties?Consider contacting:Chase Private Consolidation Loan – chaseprivateconsolidation.comNextStudent – nextstudent.comStudent Loan Network – studentloanconsolidator.com/private/Wells Fargo Private Consolidation Loans – wellsfargo.com
No-Cost Student Loan ConsolidationA no-cost student loan consolidation – doesn’t that just sound too good to be true? Think about it. You have just accrued thousands of dollars in debt through student loans after 4 years of college, or possibly even more. Then, a company offers to take all of your loans off of your hands, put them into one central loan, and do it all for free! Well, while it might not be too good to be true, it all depends around your particular situation, which could make this a “free” process, or could still work out to the benefit of the consolidation company that you are working with throughout the process.How A Student Loan Consolidation WorksHere is how the student loan consolidation works. You have used up thousands of dollars in student loans to pay your way through college, obtain housing throughout college, and pay for other odds-and-ends while attending college. A student loan consolidation then takes all these different loans, pays for each of them, at which time you then pay the student loan consolidation company for the total amount of loans taken out during college.Example of Student Loan ConsolidationIf you were to have outstanding loans of $5000 to one company, $6000 to another, and $9000 to a third, the student loan consolidation allows you to owe $20000 to one company, rather than to three. This can save you money in the long run, as these companies also may be able to offer you a competitive interest rate, which means you will be paying less overall for your student loans in a shorter amount of time and to only one company.Potential Student Loan Consolidation ProblemsProblems can occur with student loan consolidations if you catch a deal that does not work out favorably to your situation. For instance, if you choose a no-cost student loan consolidation that does not offer you a low interest rate, you could actually end up paying them more than you originally would have! It is important that you choose a company not for their “no-cost” approach, but for their willingness to get your student loans paid off with a consolidation that promotes a quick pay-off with minimal interest rates.This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about how to get No-Cost Student Loan Consolidation at www.NextStudent.com .