For those students who are just finishing college, please make sure that your finances are in order before leaving. Everyone knows that it is very hard to get through your years at college without some sort of college student debt. Make sure you know how much money you can afford to pay on your current credit card and student loan consolidation.If credit card and student loan consolidation is handled before leaving the current course of study, it will be much easier to deal with it and get it paid off in a timely manner.Most of the charges to be included in the credit card and student loan consolidation are the fees the lenders charge for giving you credit in the first place. This gives the credit repair companies and agencies a chance to reduce the total you owe, sometimes by almost half.Credit Card debt can get out of hand fast if not taken care of as soon as you start creating a life outside of college for yourself. A credit card and student loan consolidation program can allow you to make a lower monthly payment than you might have expected, allowing you to have more funding for life’s necessities.So if you are considering credit card and student loan consolidation, do your research to make sure you have all of the facts to make an informed decision about your debt. Remember to make a budget as it is essential for a healthy financial life for many years to come.
Let’s face it, us Americans love our credit cards. In fact, we now use them for nearly 50% of all personal purchases made across the country. That’s a lot, and whatever the reason is for you using yours, one thing is certain, you’re going to have to pay them all back eventually PLUS interest.. or are you?Help, I’m Drowning in Credit Card Debt!Along with the increasing popularity of plastic, has come an epidemic of Americans charging their way into seemingly inescapable levels of debt. However, lucky for you, there is help available. The most common type of this financial help is called debt consolidation.A debt consolidation program works by eliminating all of those high interest bills that have been plaguing your finances, and replaces them with one easy to manage low-interest loan, with one payment each month. By reducing your overall interest rate, you will pay less each month and have more money to put towards reducing and eventually eliminating your debt completely.How To Find the Best ProgramJust like when you are shopping for a new TV or sofa, you are going to want to shop around and compare offers from different debt consolidation programs and companies. Luckily, this is as easy as checking your email. You can request free, no obligation, online quotes from several different companies on the Internet. By doing this, not only will you satisfy your curiosity and see how much you can save, but you will also be able to see which program will save you the most money and get you out of debt the fastest.
College students who are paying for their education with student loans have the luxury of completely forgetting about having to pay back their loans. That is because they are not required to pay back the loans while in school, allowing them to focus on more important things like earning good grades, partying or both (depending on the student!).However, with graduation comes the rude awakening that they have tens or hundreds of thousands in student loan debt. After the short post-graduation grace period for the loan ends, the student is sent his or her first repayment invoice. Many students experience initial sticker-shock at seeing this invoice, but soon they settle into the grim reality that they will have to be making these payments for many years to come.As time progresses, most grads face the occasional cash-flow crunch. This crunch is usually brought on by the realities of life for anyone in their 20s and 30s, including the need to get an apartment, buy a home, get married, and start a carrier.Unfortunately, the student loan lenders are not very understanding on the months when you have trouble paying your loans. They want to be paid each and every month, without fail.The Burden Of Having Multiple Student LoansThings can be compounded even more if you have taken out multiple student loans. Having multiple loans translates to making more than one payment each month. Usually, the loans have different interest rates, and some even may be variable-rate loans while others are fixed. Also, the loans could have different terms or repayment schedules, such as 5, 10 or 15 years.What Loan Consolidation Can Mean To YouFor those grads who are having trouble managing multiple student loan payments or who just don’t like having to deal with multiple outstanding loans, consolidating student loans may be the answer.Consolidation essentially involves paying off all of your existing loans under a new loan offered at a fixed interest rate. Usually, you also have the option to spread out your repayment schedule over more time (say, 20 or 30 years), which reduces the amount of your monthly payments but increases the total cost of the loan in the long run.If you currently hold federal student loans such as PLUS, HEAL, and Direct loans, federal student loan consolidation is the way to go. On the other hand, if your loans were all issued from private lenders, you will want private loan consolidation.Consolidating Student Loans With A Low Interest Rate: 3 StepsOf course, if you are consolidating, you are going to want to lowest-possible interest rate. Here are 3 steps to getting the best rate:1. Calculate your current weighted average interest rate across all loans: To know whether any offers you get are worth taking, start by calculating your current interest rate. This will be the weighted average of the interest rate of each current loan you have. Write down this interest rate figure since you will need to refer to it later.2. Research your credit score with all three of the Big 3 credit bureaus: Next, you are going to want to know your credit score if you plan to do private loan consolidation, since your new interest rate will be based in part upon your credit. Be sure to check with all three of the major bureaus since scores vary.3. Research and apply to at least 5 private consolidation lenders: It is human nature to get a bit lazy and want to accept the first offer than comes along. But, to increase your chances of getting the best-possible interest rate, be sure to research and apply to at least 5 consolidation lenders. After all, it may be the 5th lender you apply to that offers you an interest rate that saves you tens of thousands over the life of your new loan.If consolidating your student loan is in your future, follow these 3 steps to get yourself a low interest rate.
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.
When it comes to college loan consolidation, rates of interest definitely have an important role. That is why it is only advisable for would be borrowers to get the most competitive rates as possible in order to take full advantage of the consolidation program.Indeed, student loan consolidation interest rates ideally should be competitive and borrowed via federal or private lending companies. There are simply a lot of options that one can choose when obtaining a student loan consolidation. One way of doing it is by finding lending companies via the internet and then check on their rates of interest.Nowadays in the financial market, there are numerous lenders who are competing to provide services to students. However, when talking about the interest rates, many of these companies are just charging very high rates, which are more often than not unaffordable for these student borrowers.To consolidate loans and obtain competitive student loan consolidation rates certainly is a great help for students into becoming a responsible debtor. With college loans, students have to face different amounts and interests monthly. However, with college loan consolidation, they only have to pay a single amount every month.It is now common for borrowers to obtain a fixed rate of interest which is up to .6 percent lesser than the current interest rates. And in accordance to government rules and regulations, computing the rate of a consolidated debt which is disbursed July 1, 1994 or after involves the average of the rates of the previous college loans that you consolidated. Fixed rates on consolidated loans should not go beyond 8.25 percent.
Congress voted on and passed Feb. 1 the Deficit Reduction Act of 2005 that included massive cuts to federal student loan programs. The $11.9 billion in student loan cuts, including changes in laws regarding student loan consolidation, will negatively impact those students seeking a college education and others seeking to consolidate their higher interest loans. The industry expects a rush of students seeking to consolidate at the current low rates that are set to increase on July 1.The Deficit Reduction Act of 2005, S. 1932, was narrowly approved Feb. 1 by the House of Representatives. Passing by a two-vote margin of 216-214, S. 1932 was signed into public law Feb. 8 by President Bush, thereby approving the $11.9 billion in student loan cuts over the next five years.Students and graduates now are in jeopardy. With college costs increasing every year and the forthcoming higher interest rates on student loan consolidation, college students are rushing to consolidate before the July 1 rate increase.Student Loans Take the Hardest HitThe cuts to federal student loans are the worst among cuts to other federal programs including Medicaid, Medicare and food stamps.A majority of the legislation’s provisions to student loans will take effect on July 1 and others will be implemented over time. Some provisions include an increase to 6.8 percent for federal Stafford Loans, from rates as low as 4.7 percent. PLUS fixed interest rates will jump to 8.5 percent, from 7.9 percent. The legislation leaves consolidation loans current fixed rate in place.Consolidate Student Loans Before July 1 Rate IncreaseWith student loan consolidation rates set to skyrocket on July 1, now is the time for students and graduates to consolidate, according to NextStudent, the Phoenix-based education funding company. Students and graduates now are urged to consolidate as current consolidation rates can be as low as 2.75 percent with benefits applied. Other incentives to consolidate include a longer payment term, one monthly payment and no prepayment penalties.The following are other provisions affecting student loan consolidation that take effect July 1, 2006. Students and graduates should be aware of the new regulations so that they now can take action:Consolidation Loan Changes- Single holder rule is not changed.- Eliminates in-school and spousal consolidation options.- A subsequent consolidation loan may be made in the DL Program only if the FFELP borrower wishes to obtain an income contingent repayment plan and, the borrower is trying to avoid default, but that is conditioned by the requirement that such a loan has been submitted to a guaranty agency for what used to be called “preclaims assistance” but is now labeled as “default aversion.”- Also, in the Conf. Rpt. is a provision providing that only if a FFELP borrower has an application for a consolidation loan rejected by a lender or the application is rejected because the borrower wanted income-sensitive repayment terms, then the borrower can receive a direct consolidation loan.- A borrower with a defaulted loan can receive a DL consolidation loan to resolve the default.- Unless otherwise specified the terms of DL consolidation loans are the same as FFELP consolidation loans.Approval of the Deficit Reduction Act brings major cuts to student loans and a change in regulations regarding student loan consolidation. Although the legislation has changed to the detriment of those seeking a higher education, students and graduates still have the option to consolidate before the interest rate is set to increase on July 1.
Student Loan ConsolidationYou worked hard. You studied late nights and spent hours in the library doing research. You took some grueling exams. Now you’re finally through with college and out in the working world. Everything’s going great, but your monthly student loan payment is huge! It cuts into your entertainment budget. You can’t even afford to go out to a nice dinner or take a trip. You sure as heck can’t save a down payment for a house, and you’re still throwing your money away renting that little apartment. What can you do? There’s got to be a way to improve your situation.There may be a way to improve it. You may be able to save a substantial amount of your hard earned salary every month by consolidating your student loans. Then again, this may not be the right choice for you. “Great!”, you say, “I could really use a way to save some money every month.” If you’re like most people however, you know little about loan consolidation, student or otherwise.Student loan consolidation is a bit different from consolidating your high interest credit card or auto loans. You don’t need to own a home or other real estate to use for collateral for one thing. Your student loans are different from most other loans, they are guaranteed by the federal government. There are two main types of student loans.In one program, the Federal Family Education Loan Program (FELP), students receive money through guaranteed bank loans. This student loan program has been around since the 1960’s and many students have taken advantage of it to finance their education. With FELP loans, the lenders are banks or other financial institutions, who loan money to the student. These institutions make a profit from the interest on the loan, while at the same time being protected against loan default by a federal government guarantee.With a newer program, 1993’s Federal Direct Loan Program, the money is loaned to student directly through the federal government. This is more affordable for the taxpayer because the federal government is collecting the interest and using it to help underwrite the loan program. The loans are actually provided to students by various companies under direct government contract.The interest rates for both types of loans are fixed and the individual school decides which type of program, FELP or Fixed, they will offer. The FELP is more common, as it allows more services to be provided directly by the lending institution to assist students with their loans. There are possible changes brewing. Rep. George Miller, D-Calif, directed the GAO to investigate ways for the federal government to save money in the student loan program. The GAO’s report indicated that the government could save substantial money, possibly as much as $3B a year, by using the Direct student loan program exclusively.Even if changes are made, you will still be able to consolidate your student loans. Why would you want to? You can save substantial money, that’s why. Consolidating all you student loans allows you to lock in lower interest rates on all your loans. The interest rate is adjusted each year, and remains fixed for the year. For the 2006 fiscal year (this year) it is at 4.7% for student currently attending school. This is set to increase to 6.8% for fiscal year 2007. This rate increase goes into effect on July 1 2006. PLUS loans will increase from 6.1% to 8.5%. Needless to say, this is a substantial interest rate increase. Avoiding it will save you hundreds of dollars each month.As an example, if you are currently in school and have $45,000 in outstanding debt at the current rates, you are paying about $471/month. If you consolidate, you could reduce this payment to only about $300/month. There is an incentive to consolidate now, if you can benefit from student loan consolidation. Because of a consolidation deadline, each year there is a rush to get the proper paperwork filed by the due date. Typically congress allows a grace period, so if you have filed the paperwork, but it has not been processed, you still receive your consolidation loan at the existing interest rate.This year, because of the 2005 Budget Reconciliation Act, you may not get to enjoy the grace period. There is a strong chance that if you don’t have the completed loan in hand by the deadline, it will just be too bad. You will still get your loan, but have to pay the increased interest rate from 2007. To illustrate how this can affect you, take our $45,000 example above. Rather than enjoying the $300/month payment, you could find yourself paying almost $350/month!You need to act now! Student loan consolidating may or may not be the right choice for you, but you need to know. The sooner you determine the correct course of action, the sooner you can get going. If you wait, it may just be too late.
It is a blessing for a student if he can make an easy and regular payments of his student loans; this only means his road to pursuing his college degree can be done with a lot less stress and hindrances. However, this is not usually the case for many borrowers. More often than not, monthly installments are not paid late, if not paid at all. Hence, with the number of loans that a borrower has to worry about every month, he has to decide fast and just get a student loan consolidation to take care of his financial woes. Consolidation means merging the old loans, turning them into one cheap monthly payment. Via this road, you find yourself taking care of a much easy-to-pay new debt and at the same time, ridding of the multiple loans that had created for you financial havoc all this time. And with the elimination of the old debts, you are in effect erasing the problem of dealing with the high interest rates that go with them.However, students must be careful about getting student debt consolidation. It should be emphasized that there are two types of college loans, the private and the government ones. If it so happens that you have both these types under your names, it is a must that you consolidate your loans into two groups – private and federal student loan consolidation.All kinds of government loans such as Perkins, Stafford and PLUS Loans should be consolidated under a government student debt consolidation loan. Why do we need to separate the federal from the private when consolidating? This is because the federal loans have lower rates of interest? If in case, they are consolidated together with the private ones, the advantage of having low rates will be disregarded. While your old government debts have different payment schedules and terms, once they are consolidated, there will only be a single repayment schedule leading to a much easier management of your debt. On the other hand, private debt consolidation loan should be employed when we want to merge private debts, and such loan can be availed as either secured or unsecured. Always remember, federal and private loans never mix as far as debt consolidation is concerned.
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.
It is discovered that US students are leading all over the world when it comes to taking advantage of student loan consolidation interest rates. These days, thousands upon thousands of college students are applying for college loan debt consolidation hoping that they obtain the repayment relief that they expect from these financial loan schemes.As it is, college loan debt consolidation programs are one of the best ways by which one can have relief from his many student loans. They are effective in helping borrowers get control over their burdensome loans and provide them with the means to plan an efficient budget and repayment scheme.For the best type of student loan consolidation interest rates, you can find them on the internet. All you have to do is contact the lending companies that are willing to give you affordable repayment plans. Always look for those who take time to share great financial advice, especially on how to effectively handle and manage your multiple college loans.Of course, when finally the student borrower applies for student loan consolidation, it is advisable for him to first check and study the terms and conditions that are presented to him by the college debt and loan provider. Do not simply accept the first program offered to you. Make sure that the interest rate is low as you are on the lookout for the minimum amount of payment that you need to pay every month. Shun away from lenders who are quick to present to you a variety of attractive consolidation program, but are not willing to offer you interest rates that are low and affordable.