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.

Private Student Loan Consolidation – What Are Your Options?

If you’re struggling with school debt (and who isn’t!) then you may need to find out if you can consolidate all your school loans into one. By doing this, you may be able to pay a lower monthly repayment each month, if you can get a good deal with a longer term and lower interest rate.By doing this, you may be able to save your credit history. If you run the risk of paying your loans late because you’re having problems scraping together the repayments every month, then a consolidation program may be a good option for you.Private student loan consolidation can help give you your life back! By having more money in your purse each month, you’ll have the peace of mind that comes with knowing you have enough money available each month to pay all your bills on time.It’s important that you take a good look at your finances so you know if you can afford the lifestyle you’re currently living. If you can’t, then even if you can get a lower monthly repayment by consolidating your school debt, then you may still find yourself in financial trouble.This is because you’re running out of money every month before you pay all the bills that are due. The only way to fix this problem is to cut your expenses. This may mean that you have to cut down on the number of times you eat out every week, or go out with friends.This may seem hard at first, but surely it’s better to live within your means than ruin your credit rating?Private student loan consolidation can help you repay your school debt, if you can get a better interest rate and a longer term than you have now. And don’t forget to run your eye over your finances every now and then, to make sure you can afford to live your current lifestyle.

How to Lower Your Private Student Loan Consolidation Payments

If you’re having trouble repaying your private student loans you can get help now with private student loan consolidation payments. A consolidation of student loans both consolidates all your private education loans into one loan and resets the loan’s terms.Because, for the most part, you can’t consolidate private student loans with federal student loans, the low federal student loan consolidation interest rates would not be applicable. However, it still is possible for you to pay less each month.You actually have quite a few options that can lower your monthly loan payments.1. Because your credit score strongly influences your interest rates, if your credit score has significantly risen since you applied for your loan, for example by fifty points or more, you might be able to get a lower rate when you consolidate your loans with a different lender.After doing your initial research, talk to your current lender and see if they can lower your interest rate on your current loans. They might consider doing this if they see that they could lose your business to a different lender.2. If you’re a homeowner, compare the interest rate on your variable interest rate school loans to a fixed rate home equity loan rate. If interest rates look like they are going to go up, you may want to get a home equity loan and use the money to pay off your private education loan. Doing this would guarantee that your interest rates will not increase.On the other hand, it also guarantees that they won’t go down if interest rates fall. And, worst case scenario, you could possibly lose your home, so be cautious with this option.3. You can consolidate student loans with an educational lender, such as the private consolidation loan divisions of either Wells Fargo, Chase, the Student Loan Network or others.These companies offer different repayment plans. Some offer up to 15-year term while others offer up to 30-year term. The interest rates they charge as well as fee structures also vary.Because these differences can amount to thousands of dollars in savings, most people that consider consolidating their student loans do extensive research and even do a spreadsheet analysis comparing the pros and cons of each offer before choosing the option that’s right for them. Luckily, the Internet makes it very easy to get the information you need to make these comparisons.When you evaluate private lenders consolidation loans, make sure to find out1. If their interest rates are fixed or variable2. If there are any prepayment penalties, and3. Whether or not there are any fees and what they are.

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.

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.

Private Student Loan Consolidation – Tips on How to Do It

One way of getting out of debt especially when you have many different loans is to consolidate them. This would work well especially when you have just completed your course and think of ways to repay your debt. When you go for the private student loan consolidation option, you simply reduce your numerous payments into one. This is a convenient way to deal with your debt even though you may end up paying higher interest rates since you will repay in a longer period of time.However, this does not mean that you cannot secure lower interest rates. You can achieve this by repaying your loan immediately after you graduate or during the grace period. However, you cannot get lower interest rates than those offered by federal loan consolidation program. There are various private student loans consolidation programs that are offered by lending institutions that have different interest rates and variable application requirements.It is important that you look into these different offers so that you can be in a position to select the option that suits you best. For you to be approved for this type of program, the lenders base their decision on your credit score. It is vital that you have your credit report ready when you applying for this type of consolidation. You can access your credit report online or even consumer reporting companies. A co-signer could be needed if your credit report is unsatisfactory.Some loan consolidators offer fixed interest rates while others with fluctuations. Ensure that you select the type that will help you achieve debt relief without too many problems. The most popular companies that deal with private student loan consolidation are City Students loans and Well Fargo Private Consolidation loan. They can guide you through the entire process and advice you accordingly.

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.

Private Student Loan Consolidation – 3 Easy Ways To Make Sure You Get The Best Deal

Although more and more students are staying at home for the first couple of years of college, many still take the traditional route and go off to school. It doesn’t take too many semesters to rack up several thousands of dollars in student loan debt. Students who went to a private college, or those who went on to get an advanced or specialty degree, typically have even more debt. If you fall into any of these categories, you funded your education with student loans.The higher your expenses, the more likely it is you took out multiple loans. You might want to think about lumping all that debt together and looking into private student loan consolidation.If your loans were federal, you should probably opt for federal consolidation. But, if they were private loans, private consolidation is the way to go.Private and federal loans are different in that the former are funded by banks or other lenders, and the latter are funded by the federal government. You’ll want to explore private loans with both variable and fixed interest rates. Obviously, the fixed interest rate loans may provide more stability, but they may have a higher interest rate, as well.One big advantage is that student loans consolidation can most likely lower the amount of money you’re paying out each month. The ability to save money each month on student loans offers a huge benefit to graduates who carry a lot of debt. Most recent graduates are just trying to keep their head above water, paying their monthly bills. Some also hope to start building up a balance in their savings account. High payments put a serious damper on that goal.Another consolidation advantage is the potential to simplify your financial life. Making payments to a number of banks each month, each on a different day and for a different amount, can be a bear to manage.3 Tips For Private Student Loan ConsolidationIf you are considering private student loan consolidation, here are 3 ways to help make sure you get the best deal.Shop Around To Get The Best Bank RateYou’d be surprised how much money even one point off an interest rate can save you. Spending some time on the front end, shopping around for the best rate, is in your best interest in the long run. It is always worth it to spend a little more time now shopping around with multiple lenders, looking for the best rate.Evaluate Each Potential Lender As A CompanyDo research on the lenders to ensure they’re reputable and that they are a company you’re comfortable doing business with. Be sure to ask whether they allow for online application, whether their repayment plans easy to understand, and whether they offer any benefits to borrowers who pay their monthly bill on time.Be sure to take notes on your conversation with each lender so you can compare them side by side. Don’t rely just on your memory. Some of these details can be confusing.Negotiate The Terms You WantBefore agreeing to anything with a lender, ensure you’ve already figured out what payment terms will meet your needs. The longer the period of the loan is, the lower the payment will be each month. But, don’t forget this means you’ll be paying more money in the long run. As a good rule of thumb, you should get the shortest term possible with a monthly payment you can afford now.The benefits of student loans consolidation are significant, but it takes a bit of homework. Utilize these tips to make sure you get the best deal.

Private Student Loan Consolidation – Extra Money In Your Pocket Every Month

Private student loan consolidation can help put money in your pocket. Getting a college education is one of the best ways to increase your lifetime earnings potential. But, paying for the education is a different story. Many students find they need to take out loan after loan to cover the expenses of going to college for several years.Some graduates factor in the cost of their loans when looking for their first job out of college. Rightly so, they want to make sure they can repay their loan obligations and still pay their monthly bills. In current economic conditions, however, this is getting more difficult to do. So, what happens when you find yourself with multiple student loans and a job that does not pay as well as you had hoped? If you are in this situation, you should look into the possibility of consolidating your loans.One of the best ways to lower the amount you are repaying each month to cover your college loan expenses is to consider applying for private student loan consolidation. If you qualify, you should be able to combine multiple loans. This will, in turn, alleviate some of your worries and reduce the stress of being responsible for paying multiple monthly loan bills. It can also make it significantly easier to manage your monthly budget because you can usually consolidate your loans at a lower interest rate. And, a lower interest rate translates into a lower monthly payment.There are several benefits and several things you should look out for when considering consolidation.Benefits of private student loan consolidation-Consolidation will normally help lower your monthly payments.-Once you have established a good credit rating, most of the time you will be offered reduced interest rates.-If you are an undergrad borrower, you may be granted up to 25 years for the repayment term; and grads may be given up to 30 years for the repayment term.Things to be aware of when applying for private student loan consolidation-Usually, it will take a month and a half or so for the entire process. You can possibly speed things up by ensuring all your submitted documents are thorough and complete.-Be sure you keep paying your monthly payments while you’re waiting for the process to complete. This will prevent you from being looked at as a bad credit risk.-There are minimum and maximum borrowable amounts. This can vary from about a $5,000 minimum on up. Check with the lender for what their policies are.You should consider each of these factors when deciding whether or not consolidation is the right choice for you to make. If it is, you could have more money left in your bank account each month and only have to write one check to cover your loans. While there are many benefits to private student loan consolidation, be sure to be aware of the potential drawbacks, as well. Do your homework so you can make a fully informed decision.

Federal Consolidation Student Loans – Difference Between Federal and Private Student Loans

The best tool for managing a few debts is the student loan consolidation. This helps you mix all your private or federal student loans into a single one with longer terms and affordable payment.In the US, there are two types of student loan categories available: the federal student loans and the private student loans.The federal student loan consolidation will help a student combine all his loans into a single one with a very low interest rate. Also the length of the payment term can be set according to his needs. A student can ask for a federal consolidation loan from various financial institutions each offering great loan packages.On the downside, the low monthly payments will help increasing the full total amount to be repaid. Even so the federal consolidation student loans offer the following beneficial features:- Interest rate – the rates offered by the federal consolidation student loan is considerably lower than any other private loan plan.- Monthly payments – the monthly payments are now affordable and won’t endanger your budget- Single loan – each month you’ll have only one payment to make.If a student is not enrolled in any school and has repaid any other previous loans in time or he is in grace period after post graduation then he is eligible for federal consolidation loans. The minimum amount is $10,000 or more.The students that already have federal educational loans are eligible also for consolidation loans. The student debt consolidation loan doesn’t include the private education loans.A student can apply for a federal consolidation loan at several companies and institutions such as: secondary markets, banks and credit unions.The federal loan interest amount is tax deductible and that’s why it would be best not to mix federal and private loans. If the student does that, he’ll only lose its advantages offered by a federal consolidation loan.