College students normally take in student loans to pay for their university or college education. However, eventually, these students encounter serious repayment problems as they are also faced with your financial problems in life.Good thing that there is an effective solution in the repayment of these student loans and this is via direct student loan consolidation. Such program or scheme serves in alleviating problems that concern repayment of school loans, and eventually it will help the individual to focus on other financial responsibilities.When you are finally about to get a direct student loan program for yourself, a new loan is obtained which have lower fixed interest rate. This becomes your new loan that will replace your old loans. Basically what you pay your new lender is used to pay for your previous loans. Instead of dealing with several lending companies, you now enjoy the convenience of paying to just one lender.Direct school loans consolidation actually provides effective solution to your financial worries by being offered a new start with the elimination of your old school debts and the creation of a single yet very manageable loan. With such consolidation program, you are given a single date every month on which you need to pay your new single loan. Certainly this is such a lighter debt repayment responsibility.With college loan debt consolidation in place and previous debts finally paid and settled, these can only mean the eventual improvement in your credit rating as you now are able to promptly and regularly pay your financial debts.
Certainly you must be tired of the interest repayment on your student loans that you need to face every month. Worry not as there is not an effective solution to all your problems and this is what we call student loan debt consolidation. With college loan consolidation schemes, students are able to enjoy numerous advantages and benefits.However, students can become confused on what the qualifications are when applying for college loan consolidation programs. But when it comes to federal loan consolidation, the government is clear on the rule that students within their grace or who found themselves in the position wherein they are not able to pay their loans qualify in getting student loan consolidation schemes. Those who are still enrolled may enjoy the benefits that federal guaranteed loans offer.Nowadays, there exist many lending companies that offer student loans to students, however there are many of them who charge high rates of interest. Indeed, students are obliged to pay interests on the loans that they obtained, and this is done on a monthly basis. For some, this responsibility can be quite impossible to fulfill because of lack of financial resources.When it comes to repayment of college loans, this task can be a great burden and certainly a big distraction from the career of life of a student. The best thing to alleviate such burden is by getting a student loan consolidation program. This is the greatest deal for one to get and enjoy. Such financial schemes certainly help a student by taking away his worries on how to pay back his monthly payments. This happens once he is able to obtain a new, more manageable loan.
IntroductionIt’s amazing how many people get confused between a second mortgage and a home equity loan. For all intents and purposes they are one and the same.The amount that can be borrowed on a second mortgage is based on the difference between your home’s current value and the outstanding principal balance on your first mortgage – this is known as your ‘equity’ – starting to sound familiar? Additionally in the U.S. the interest paid on a second mortgage is normally tax deductible.So why the confusion? Well, its the ‘amount’ that the loan is taken out for. The main difference is that a home equity loan can also be used like a line of credit. You can borrow as much or as little as you want up to the agreed amount between you and the lender. The second mortgage on the other hand, is for an agreed amount at the outset.
Second Mortgage and Home Equity FactsA major similarity between a second mortgage and a home equity loan is the necessity for a good credit standing. The reason is that a second mortgage and/or a home equity loan results on a second lien over the property. This means that if you default on your first mortgage the first lender can foreclose and the ‘balance’ of the sale proceeds is paid to the second lien holder – in other words the ‘credit risk’ is higher. Depending on the circumstances properties can have more than two mortgages.To make matters even more confusing second mortgages are also commonly referred to as home equity line of credit, home improvement loan and debt consolidation loans!One key fact that is often overlooked is that second mortgages/home equity loans qualify for tax relief. This is both good and bad. The tax relief can prompt home owners to borrow more than they would previously have – so it’s not necessarily prudent. In addition in a market where house prices are falling this is usually accompanied by a recession and higher risk of unemployment can leave home owners exposed to foreclosure.You also don’t have to borrow the entire amount of equity in the home, if you only need $10,000, and you have $50,000 in equity available then you still have ‘reserve of $40,000’ that you will not pay interest on.So what can a home equity loan be used for?Well, that’s up to the borrower. Think of it like this – if you already have two good cars and you’d like another spare one – even if there are only two drivers – this may not be the ‘most sensible’ use of the money. However if you’re looking at consolidating some expensive credit and then paying off the balance of the home equity quickly that is a better use of your resources!RepaymentA second mortgage can release cash to reduce or eliminate high payments on the non-mortgage debt and with the increase in tax savings can reduce your monthly payment of debt. However these savings can be offset by a higher mortgage insurance premium (reflecting the perceived increased risk to the lender) and a smaller reduction in debt over the duration of the loan. The secret to successfully taking out a second mortgage is to ‘over pay’ if you can!There are plenty of repayment options available to the borrower including interest only payments and annual payments. One note of caution, though, if the borrower is looking at relocation in the near future then pre payment charges will bury any savings – so think of this as much longer term to get the most benefit.ConclusionThe key issue in getting a second mortgage is the amount of equity you have in your home. A second mortgage is a secured loan which means that this should be an easier loan to get, as long as the borrowers credit score is good. A real bonus is that the interest paid on a second mortgage is in most cases tax deductible. A second mortgage can be a good solution for obtaining funds for school tuition, home repairs and renovations, however it’s important to remember that a second mortgage is based on your home’s equity and you are putting your home up as collateral. So if something goes wrong – you lose your home and you only have to read in the Press that it does happen!So a second mortgage vs home equity loan really depends on how much you want to borrow, what for and whether you want it all at once or as in a line of credit! The decision is Yours!
You’ve made it through all of it – high school, prom, applications – and now you have finally been accepted into the college of your dreams. Move over mom and dad, it’s time to hit the college road. The only question now is, how do you plan to pay for your education?If you are like most newly accepted college students, you probably plan to apply for a number of student loans in order to help with those payments. And, let’s be realistic here. You probably plan to go for the maximum amount of money just in case you have to spend a bit on, um, books.While this strategy is one that is adopted by nearly every college student on the planet, more students than ever before are graduating with a boat load of debt. How much debt? Roughly seventy percent of all college students these days rack up around $20,000 worth of student loan debt.This number may not seem like much to you now, but it will seem like a lot when you start getting those repayment bills four years from now. Four years seems like a long way away, doesn’t it? Make no mistake about it, those four years fly by far too fast leaving you with a lot of hefty bills.So, how can you avoid this horrid fate? Well, choose your loans (and loan amounts) wisely. Should you have any amount of money currently save up, use this money to pay for some of that tuition prior to applying for loans. You may be a bit skeptical about spending this money on loans, but it is worth it.Should you have a decent job that you plan to hang onto in college, try and pay for your courses one by one without applying for loans. If you are spending your pay check as soon as you get it, now is the time to realize that you must start saving some of that money.You’re young, free, and ready to experience life, so you don’t have to save all of the money that you work hard for (after all, you do want to enjoy those college years too). Still, save enough to cover your courses, books, and tuition if you can. This way, the accrued debt will be a lot less when you graduate.It may be hard to think of those inevitable student loan bills now, but when those four years are up you will be glad that you did. Enjoy your college years, get a great education, and find a superb job that you love. Just don’t wind up owing more than you can handle when you graduate.