Student Loan Deferment – 7 Things to Keep Straight

Know what student loan deferment means? In case you just started with financial aid, I’m going to tell you a little about it to help you stay out of trouble. When you need to use it, you need to understand the benefits you have.Let’s run through it so you have some specifics.1. What does student loan deferment mean?Deferment starts with the name. You can defer, or postpone until later, some payments on these loans. This can help in some important circumstances.In a true deferment, your interest will also stop.2. What loans allow deferment?Great question with a great answer. Stafford loans, Perkins loans, PLUS loans, and some private student loans.But here’s a key to know about your loan. Subsidized Stafford loans and Perkins loans typically defer completely.Unsubsidized Stafford loans, private student loans from a bank not part of your government approved financial aid, and PLUS loans don’t defer completely.In the case of the PLUS loans and unsubsidized Stafford loans, you can defer the loan but you will still have to pay interest – only the principal will be deferred. If you don’t pay the interest, it is capitalized.In other words, added to the loan. After that, you will pay interest on the original balance and on the added interest.For a private student loan, you’ll have to check with your lender, but many offer some form of deferment similar to the PLUS loan.3. When can you defer a loan?In my case, I used student loan deferment to go back to graduate school. This worked great. As long as I was registered and going to school at least half time, I didn’t have to pay my loans.I have also used it once when I couldn’t find work. That really helped.You can also use it during Peace Corps service, and graduate fellowship programs or rehab programs for the disabled. Also, you can use deferment during military service.4. How do you start a deferment?It’s not hard. Call your lender and ask for the form. Usually, you can print the form online and maybe even sign it there.If you have a legitimate reason, your lender will let you know that your loans have been deferred.5. How long does deferment last?In my case, I used student loan deferment for my whole graduate degree, or about 3 years. That really helped, since I was unemployed much of the first year.If you use it while you look for a new job, you can defer payments for 3 years in the federal program. Your lender may have different rules for your private loan, so be sure to ask.6. What’s the difference between deferment and forbearance?Deferment and forbearance essentially accomplish the same task: turning off your loan payments for while.Deferment usually doesn’t increase the value of your loan. Forbearance means that your lender doesn’t collect your payments, but still charges you interest in most cases.A deferment may cost nothing or just interest payments.A forbearance will typically cost at least the interest tacked onto the end of the loan. Also, forbearance applies when you don’t qualify for deferment.7. Can I use student loan deferment after consolidation?Yes! If you have consolidated through the federal consolidation program, you still have benefits.Private student loans may not have the same benefits, so check into it with your lender.Keep It StraightThere you have it. 7 things to keep straight about deferment. Remember, federal student loans can be great, but they do lack one thing. You can’t escape through bankruptcy.Be careful to only borrow what you need and can pay back. Whether you borrow through the federal financial aid program or a private lender, keep your lending low and you’ll be able to pay it off faster, and don’t borrow when you don’t need it.Good luck!

Fixed Rate Private Student Loan Consolidation – A Sure Way to Save Times and Sweat

A lot of student and some college students that have just graduated are searching for proper means to make some saving. One of the assured means of saving is through a fixed rate private student loan consolidation and this has been a very effective means of saving over a long period of time.Consolidating college loan is a successful way of totaling up all of once previous loans be it on different company or one company. These loan of your is combine together into one loan and the difficulty of tracking all of once loan at different place at different time is eliminated from the student with ease to the consolidation company that is the company is in charge of taking care of your loan for you.Consolidating student loan is necessary because one may not have enough time to handle his or her loan due to things like been busy with your new work and your life. The reimbursement of consolidating college loan, are continual and one among them is that a student can have very low monthly payment this is as result of very low fixed interest rate. It is known that the effect can only be done once and not one after the other from company to company.One must remember to rank high in your credit rating because the creditors and lenders take this very important. A better way of having high credit rating is by going for a fixed rate private student loan consolidation service and it is made possible because you are paying them all at once and not the lending companies. In general, student loan consolidation allows you to have only one company instead of having two or more.Consolidating student loan is of great help and relief to the student but searching for a very good company to run the task is not as easy as you think. Now you have known the meaning of consolidating loan you can as well look up for a company that has had great result in the past and has existed for a considerable number of year. Endeavor to trial in your best possible effort to pick the most trustworthy one.

Private Student Loan Or Federal Student Loan – The Choice is Yours

Federal Student LoansLoans granted are based on the credit score of the borrower. The interest rates are fixed and comparatively low and repayment begins six months after the completing your graduation or a little earlier. These loans are guaranteed by the Federal Government.Subsidized Federal Students LoanThe Federal Government undertakes to pay the interest portion on the loan availed to the respective lending institution on behalf of the student while the responsibility to repay the principal loan amount rests the student. Also called the Stafford Subsidized Students Loan program, the approval is highly restricted.Federal Loan ApprovalStudents scouting for a subsidized loan should file the FAFSA. Proof of their financial condition and the need for financial assistance should be expressed by way of a FAFSA application. Part-time college enrollment is a minimum requirement to qualify for a federal subsidized loan. No credit check required. Independent students or students whose parents have a bad credit history can apply.Private Student Loan as an AlternativePrivate student’s loan is an unsecured credit based loan offered to graduate or undergraduate or continuing education students and their parents, where the students are at least 18 years of age. There is no question of choice, Private or the Alternative Student Loan option generally supplements the Federal Student Loan as the benefits offered by a federal loan is far more than private loans.Benefits of a Private Student LoanThe benefits arising from the Private Student Loan option
Maximum borrowing limits not fixed

Students can apply for a loan with credit worthy co-signers

Prepayment penalties, application deadlines and cancellation charges not applicable

Tax deductible interest on loans

Immediate loan processing procedure
Requirements for a Private Student LoanThe requirements to be satisfied are as follows Study in TERI approved schools
Proof of income and enrollment
A good credit report
Higher loan amount requires credit worthy co-signer

Personal Student Loan Consolidation – How Does a Student Loan Help You To Achieve Your Dream Career?

Today the most important facet behind people’s success is their talent and experience, and that talent is emerged through their education. Today education is playing a very vital role in student’s life for their future that they can’t even think of their career without it. Education is not just a way that leads the students towards their dream goal of achieving a good wealth, but also helps in earning respect in the society. The other facet of an education which is also as important as a degree is the college education. Besides just an education today many companies also see from where a student has achieved a degree, since a degree of an unrecognized or unfamiliar college is next to the word futile.Now to get an admission in a highly renowned college is not as easy for everyone, especially when it comes to finances. Many students are capable enough to get through the test and other selection aspects of admission, yet they halt themselves to enroll in such colleges just because of their skimpy economic conditions. After surveying this reason of many people not holding a degree, government and many other private banks concluded to offer student loans. The interest of the student loans is very less compared to other loans and offer several benefits. One of the significant advantages of personal student loan consolidation is students get the flexibility of repaying their loan after the completion of their graduation. Such facility is provided because ultimately after getting the loan the students get tensed on how to clear the loan along with their studies, which eventually affect their concentration on studies. These personal student loans ensure the students shouldn’t carry any sort of burden pertaining to the repayment of loan while they study; and pay it back after acquiring the degree and job.No doubt that personal student loan consolidation does have certain norms on which basis the loan gets approved. The procedure of the loan may include the verification of house hold income, profession of granted person and other elementary things. Before thinking of opting for personal student loan it is very imperative to make an agenda how to cover up the repayments in case if there is procrastination while getting a job after achieving the degree. Because the deferment of personal student loan consolidation has a certain limit of repaying after gaining the degree. And if the time is surpassed beyond the specific period than that may lead a student to pay higher interest or come on the brink of bankruptcy. Eventually, the worth of such degree becomes pointless. Nevertheless, it is just a worst scenario that takes place very seldom, though to avert such circumstances it is better to plan everything before opting for a loan and move accordingly.

Part-Time or Unemployed Students Can Get School Loans

Food, clothing, housing, utilities, transportation, fuel, medical expenses, and a little allowance for recreation – these are all the necessities of any non-student. But a college or university student is saddled with a lot of other expenses – tuition, expensive text books, basic school supplies, lab fees, student union fees, fraternity or sorority dues, a laptop computer, connectivity fees or equipment. Special calculators and cell phones are becoming necessities for college attendance as well.Loans to Pay for a Higher EducationDepending on the reputation and other considerations, tuition and other education fees will vary widely from institution to institution. Tuition at a small community college will be considerably less expensive than an ivy league school. Every student should exhaust every avenue to find money for school. These can be in the form of scholarships, federal student loans, grants, government agency programs, and so forth. But even with these programs, the cost of the education could be out of reach for many. That is where the federal government can help, as well as private education loan lenders.Free Application for Federal Student AidFree Application for Federal Student Aid, or FAFSA, is a government aid program that provides loans to students, especially to those who are unemployed or only working part-time. They even consider students who may have poor credit histories. These loans, however, are meant to cover only tuition and other fees fundamental to the cost of an education.These funds are remitted directly to the school and do not cover other expenses such as text books, housing, transportation, etc. The student would be responsible for covering those expenses. The amounts bestowed are based on family income and tuition and fees necessary to attend the chosen institution of higher education.Private Loans for Higher EducationPrivate lenders are also available to supplement student expenses. Shopping around is an extremely important part of landing a private student loan. Private student loans can weigh in a little heavy on interest rates charged. Amounts offered, interest rates, and payback terms can vary widely from lender to lender. Extra effort spent on researching lenders can potentially save hundreds or even thousands on interest rates.Students with a good credit history can contract these loans themselves. Often, even if the student has no credit history, a lender will be willing to take on the risk with only the student signing. If a student has poor credit, a co-signer with a good credit history is required. Both the co-signer and the student should realize that if a student defaults on the loan, the co-signer will be required to pick up the bill with a substantial penalty.Summarizing Student LoansWhen it comes to interest rates, federal loans offer rates considerably lower than those required by private lenders. While federal loans go directly to the institution of higher education, the funds for students from private lenders are put directly into the student or parent bank account. The funds can be used for tuition and other fees, and they can also be used to cover the day to day expenses of the students, such as transportation, text books, cell phone contracts, or a laptop computer. The student or parent is responsible for covering the expenses needed to retain enrollment.Both federal loans and private loans pretty easy to pay off. Payments are not required until after being graduated and the terms can extend over five to ten years. If a student decides to pursue a higher degree, payment for these loans can be extended, in many cases, until the higher degree is achieved or the student leaves the academic life.

Eliminating Debt Early With Private Student Loan Consolidation

Many recent graduates are finding it harder and harder to stretch new paychecks. Graduation may be a milestone in itself, but alongside a college diploma are the endless monthly bills. Living on one’s own has never been easy. Private student loan consolidation is often used to lower monthly payments and improve credit ratings.Accumulating DebtsOften, the accumulation of other debts is to blame for such a sorry state of affairs after graduation. Take the case of 25-year-old Tamika Gambrel, who has a $60,000 a year job but still finds it difficult to make ends meet. She has to pay $840 for the apartment, $280 for the car note and a hefty $24,000 credit card debt that came from her college days. She speaks frankly about her debts:”After four years, I walked away owing only $28,000 in loans. Considering that tuition and room and board alone at Colby was $35,000 a year, I think I did alright.”Not everyone could put up such a brave face in the face of debt. Some just decide to file for bankruptcy, instead of getting a private student loan consolidation.Fees Not Letting UpAccording to the College Board:”The cost of attending a public, four-year college or university in the 2007-08 school year–including tuition, fees, and room and board–was $12,796, up 35% over the past five years; for private schools, the cost was a hefty $30,367.”These figures are by no means fixed. As we all know, tuition fees and other related fees increase and decrease depending on inflation and other economic forces. But people still want to borrow money for their college days, because indeed it’s a chance to get a better shot at life. Private student loan consolidation becomes a chance to get better rates in the end.Know Your Debts FirstTo “retire” your student loans faster, you have to know your loans. Log on to www.nslds.ed.gov (National Student Loan System) to read about the specific details of different student loans. Check the status of your loans, as well as the variable interest rates and the principal. Make sure too that you obtain the required personal identification password (PIN). This can be obtained from the Department of Education. Log on to www.pin.ed.gov for more details.Another important thing to remember is that federal loans and private loans are different. Federal loans have caps on their interest rates while private loans do not. Often, private loans are costlier. And another thing: federal loans and private loans cannot be consolidated by one large loan. They must be consolidated separately. And again, federally subsidized loans have the government backing it up (Uncle Sam pays the interest rates while you’re in school).Make sure that you only go to attractive private student loan consolidation deals. The case of Gambrel was actually good: she had been able to get consolidation at a 2.87% interest rate. Gambrel acknowledges: “I got very lucky. At the time I graduated, jobs weren’t plentiful, but student loan consolidation programs were very, very attractive.” This just goes to show that careful financial planning can lead to beneficial results.

How to Refinance Private Student Loans – 4 Ways

Refinance private student loans and save money, right? Those loans tend to be a burden. And they can take forever to pay off – they seem to stick around forever.I’ll show you 4 ways to get them refinanced and to get your payment down. You decide whether these apply to you, and if you can use them.Here’s the first one:1. Use a Private Student Consolidation LoanYes, banks actually offer these. Here’s how it works.You get a loan during college for tuition or other expenses from a private bank, and without a federal student aid guarantee – a real private student loan. Maybe you are paying 8 or 10 percent interest for this student loan, and you have a deferment until after you graduate.Then, the next year, you get another one. Yippee! Or maybe Uh-oh…either way, you now have money to go to school for another year.And maybe this happens again…so you want to refinance private student loans from 3 years of college. Maybe from all different banks, maybe from the same one.Several banks offer a private student consolidation loan. They will pay off your other 3 loans, and give you a new loan to replace it.This can help by combining all your loans into one payment, possibly reducing your interest, and extending the term of your loan.That’s one way. Here’s another.2. Refinance Private Loans with Another Type of LoanYou can use any other loan you want in this one. If you have a good opportunity to borrow money, you might consider using some of to pay off your student loans.This would only be a good idea if you have better terms on the new loan, like a much lower interest rate or longer period to pay off if you need that.I don’t think you can refinance private student loans with for example federal ones, but you might look into it, since the rate is lower.3. Refinance with a Home Equity LoanI’ve broken this out as its own item because so many people have done it or looked into it. When interest rates are low, this idea looks even better.The benefits of this include a longer pay off, up to 30 years. Often your rate will be lower since the loan has collateral. Also, if you sell your house, you also pay off the loan!The problems might be that you will extend an already long pay off for another 30 years. And if you get a variable loan, you could end up paying higher interest than you do now. Also, you will be using your equity, meaning that you won’t get as much cash when you sell.These tradeoffs are serious. Be careful and talk to a professional financial counselor if you decide to do this or any of these ideas.4. Refinance with New, Lower Rate Private Student LoansIf your credit score has risen or other things have changed in your life, you may have better credit. When your credit score rises 50 or 100 points, you qualify for lower rates than you did before.You could get a loan to pay off your old one, and refinance private student loans that way. You’d get your rate down, and that is always better.Pay Off Your LoanOf course, you’ll save more interest just by paying off your student loan or skipping it in the first place if you can. It may take having a second job or working more hours for a while, but paying it off will feel so great.So whether you refinance private student loans you have or not, plan to pay them off as quickly as possible.Good luck, and finish that degree!

Private Student Loan Consolidation – Reduce Your Monthly Payments

Private student loan consolidation aims to ease your financial burden by combining all your private loans under one loan program. Making monthly payments for different loans could be quite frustrating, particularly when you have other bills to pay. At times you may not even have the resources to pay for all the loans that pile up one after the other. Private student loan consolidation plans bring all your loans together and what you are left with is a significantly reduced amount of monthly payments at lower interest rates (in most cases).One loan, one paymentWhen you consolidate all your private loans into one loan program, it becomes easier for you to make a single loan payment every month. Not only are your monthly payments significantly reduced, but you also benefit from improving your credit score over time. Maintaining a good credit score secures your financial future and helps you to obtain other loans in the future (car loans, mortgages, etc-).Make your finances more manageablePrivate student loan consolidation is a great way to simplify your finances. For example, if you have 10 college loans, you will need to keep track of 10 different monthly payments; adding to this are 10 different payment due dates. This kind of financial situation can be quite overwhelming for a student who is trying to make ends meet. A private student loan consolidation program makes sure that all your existing loans are brought together under one loan program, and all you need to do is make single payments every month, instead of multiple payments that could leave you confused and frustrated.Extending the loan repayment termsOne great feature of private student loan consolidation is that you can extend your loan repayment period for up to 30 years. This gives you the opportunity to spread out your monthly payments over a long period of time so that you are able to pay a lesser amount every month. The downside to this is that you might actually end up paying more considering that your loan period is extended. However, different private loan companies have different policies, and it is always better to carefully go through the terms and conditions before going through with any type of student loan refinancing program.When you are making multiple monthly payments to payoff your student debt, you may find it nearly impossible to save money or make all of your payments each month. As a student or recent grad, you need to look out for different ways to save money and private student loan consolidation program is definitely a smart way for most people to reduce monthly payments.

Student Loan Consolidation – Is It Worth To Do It?

Definitely YES!Life after graduation can get very expensive. With all the living expenses tied into post grad life, including housing costs, car payments, possible relocation and expenses related to your career, why worry about a huge student loan payment? Student Loan Consolidation can reduce your monthly payment, and help you manage your budget.Take advantage of these benefits:
Reducing your monthly payment up to 53%
No fines for early repayment
Improving your credit score
Simplifying your monthly bill-paying paperwork with one payment a month
No credit check, no co-signers needed, and no fees
Consolidation loan interest is Federal Income Tax Deductible
If you answer YES to one or more questions below then you should consider consolidating your student loan.Do you have problem our monthly payments manageable? If you have trouble doing your monthly payments in timely fashion, and/or want to avoid default, a student loan consolidation may help you. You will only have to take care of one payment instead of several payments with it’s own due dates.Too many monthly payments driving you crazy? If you send payments to more than one lenders every month, and want the convenience of a single monthly payment, consolidation may be right for you.Do you have to pay variable high interest for your loans? Then you may want to consolidate. The interest rate for a consolidated loan is fixed for the life of the loan. The rate is based on the weighted average interest rate of the loans being consolidated, rounded to the next nearest higher one-eighth of one percent and can not exceed 8.25 percent.However if you are close to paying off your student loans, it may not be worth the effort to consolidate or extend your payments.

Eliminating Debt Early With Private Student Loan Consolidation

Many recent graduates are finding it harder and harder to stretch new paychecks. Graduation may be a milestone in itself, but alongside a college diploma are the endless monthly bills. Living on one’s own has never been easy. Private student loan consolidation is often used to lower monthly payments and improve credit ratings.Accumulating DebtsOften, the accumulation of other debts is to blame for such a sorry state of affairs after graduation. Take the case of 25-year-old Tamika Gambrel, who has a $60,000 a year job but still finds it difficult to make ends meet. She has to pay $840 for the apartment, $280 for the car note and a hefty $24,000 credit card debt that came from her college days. She speaks frankly about her debts:”After four years, I walked away owing only $28,000 in loans. Considering that tuition and room and board alone at Colby was $35,000 a year, I think I did alright.”Not everyone could put up such a brave face in the face of debt. Some just decide to file for bankruptcy, instead of getting a private student loan consolidation.Fees Not Letting UpAccording to the College Board:”The cost of attending a public, four-year college or university in the 2007-08 school year–including tuition, fees, and room and board–was $12,796, up 35% over the past five years; for private schools, the cost was a hefty $30,367.”These figures are by no means fixed. As we all know, tuition fees and other related fees increase and decrease depending on inflation and other economic forces. But people still want to borrow money for their college days, because indeed it’s a chance to get a better shot at life. Private student loan consolidation becomes a chance to get better rates in the end.Know Your Debts FirstTo “retire” your student loans faster, you have to know your loans. Log on to www.nslds.ed.gov (National Student Loan System) to read about the specific details of different student loans. Check the status of your loans, as well as the variable interest rates and the principal. Make sure too that you obtain the required personal identification password (PIN). This can be obtained from the Department of Education. Log on to www.pin.ed.gov for more details.Another important thing to remember is that federal loans and private loans are different. Federal loans have caps on their interest rates while private loans do not. Often, private loans are costlier. And another thing: federal loans and private loans cannot be consolidated by one large loan. They must be consolidated separately. And again, federally subsidized loans have the government backing it up (Uncle Sam pays the interest rates while you’re in school).Make sure that you only go to attractive private student loan consolidation deals. The case of Gambrel was actually good: she had been able to get consolidation at a 2.87% interest rate. Gambrel acknowledges: “I got very lucky. At the time I graduated, jobs weren’t plentiful, but student loan consolidation programs were very, very attractive.” This just goes to show that careful financial planning can lead to beneficial results.