Since a lot of students can’t afford to pay their way through college, they resort to securing college debts. Such debts can come from government or private financial institutions or the school the borrower is attending.Eventually after graduation, most students discover that it’s such a burden to pay off their piled up debts. To lessen this burden, they opt for student loan consolidation.Basically, the combination of several college debts into one is called student loan consolidation. This results to a fixed, lower interest rate and monthly payments.What factors should you consider before consolidating your debts?Combining everything you owe into one is not always advisable. Why is this?There are incentives that are offered only to ordinary college credits that may be lost once the debts are consolidated. Among these incentives include:• forgiveness of debt in the case that payments are defaulted
• 6 months grace periodThere is no fee required in federal credit consolidation. While still a student, it is not possible to get your debts consolidated; this is only allowed after graduation. You can arrange for a consolidation within the given grace period though but remember that the grace period will be voided therefore your payments start immediately.Parents who have arranged a series of educational loans are allowed to consolidate anytime.Is student loan consolidation a good solution for easier debt repayment?Consolidation of debts is merely a tool to make repayments more comfortable and easier for the part of the borrower however this isn’t all the solution for easier management of debt. It still depends upon the individual whether it is easy to pay off or merely a burden. Spending reasonably and allocating enough funds towards your debts are some of the keys to easy debt management.
While student loans have helped many poor students by enabling them to pursue further studies by providing financial assistance, it can also be an emotionally and mentally exhausting journey.Repaying a large student loan or multiple student loans can be a long burden which extends many years, well into your working years. Many students which have graduated find themselves having to set aside a large portion of their salary just to repay the student loans.So what solution is available to help? A student loan consolidation plan may be able to help you particularly if you are repaying several student loans concurrently.A student loan consolidation plan consolidate your student loans into one loan thus you only need to make one payment each month. This will help to better manage your finances as now you only repay one loan.There are several types of student loan consolidation plans available depending on who you lend it from. Examples are federal student loan consolidation, sallie mae student loan consolidation etc. Check with your school or lender for more information.There are several ways in which you can repay a student loan consolidation. The most common is a standard repayment plan. You repay a fixed amount every month until you fully repay the loan.A graduated payment plan allows you to repay the student loan after you have graduated. It is suited for students who have no income during studies and only able to repay when they graduated and have a job.A variable payment plan allows you to adjust how much you repay each month depending on your income level. It allows a greater flexibility and is more suited for people whose income varies each month. An example would be salesmen who earn via commission.Another advantage of student loan consolidation is that it also helps to improve credit rating. Since you are effectively getting a new loan and your existing loans have already been cleared, it will help to improve your credit rating and easier to get financial assistance should you need one in future.I would advise getting a federal student loan consolidation as the interest rates are one of the lowest available and the government loan is open to anyone studying in an american education institution.
Earning a college degree is one of the most significant accomplishments in life. However, going to college these days, especially private universities can be costly and can put you well into debt if you are not careful. Many students need help to pay tuition costs and most college students turn to student loans as an option. During college, students do not think about repaying the loans back but soon after graduation the reality sets in. What is the best way to handle the school debt? One option is to use student loan consolidation as a means to assist in restructuring the finances of those students who have accumulated numerous loans. Here are some helpful tips to consider when you consolidate student loans:1) ResearchDo your research when investigating lenders. Don’t assume all lenders are looking out for your best interests. Just like you did in college, you need to make sure you do your homework and find a credible lending institution. While comparing and choosing the best lender to use you should consider flexible application procedures such as an online application and the ability to manage your account online. Loan counselors on the site can help you decide if what they are offering is what’s best for you. Take the time to compare the different incentives between lenders. This will enable you to make a well informed decision based upon weighing the pros and cons of each lender.2) Consolidate your federal and private loans separatelyMany times graduates will get one loan that consolidates all of their federal and private student loans. Be aware that if you do this, you could lose some of your federal loan benefits. One example is if you combine both private and federal loans you can lose out on the interest tax deduction benefit you get with your federal student loans. Try not to be hasty when going though the consolidation process as there are many benefits to keeping these loans separate.3 Manage your new payment scheduleWhen you consolidate student loans, most likely you will have obtained a lower interest rate. The lower interest rate combined with extended payment terms would result in lower monthly payments. Take advantage of the lower payments and pay more towards the monthly bill. It’s recommended that you pay about one-third more than the minimum payment. If you can do more then that’s better, but be sure that you can afford it. The benefit of handling your monthly payments this way is that you will pay off your loan faster than normal and at a lower rate.Student loan consolidation is a worthwhile option and can help to lift your student loan burdens. Research lenders and the sooner you consolidate student loans the faster you can take advantage of the benefits of low interest rates and lower monthly payments.
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.
Sallie Mae student loans are a great way to pay for college. Sallie Mae can help you obtain federal loans along with alternative financing for students who cannot otherwise qualify. The federal loans typically have the best interest rates and payback policies. Federal loans include the Federal Stafford Loan and the Federal Perkins Loan.The Perkins Loan is unique in that the school you attend will be the lender. Some schools will not participate in the Perkins Loan. Sallie Mae can act as the lender for a Stafford Loan, or they can act as the guarantor for the lender.You can also get a private Sallie Mae loan if you do not meet the Federal guidelines. These loans are typically called an alternative student loan as they are personal and generally not subsidized.Rather than going to a bank for a private loan, you should utilize Sallie Mae for a loan. The rates tend to be lower and payment terms better than you can obtain at a bank.A federal loan has certain income and grade point restrictions. A private loan generally will not have as many restrictions and will allow you to borrow more money. The primary concern here will be with your credit score.Many students find that they need more than one loan to pay for college, some of the loans have different interest rates, terms of payments, and payment dates. These students find that it may be advantageous to consolidate all of their loans into one Sallie Mae loan. This may, or may not, be the best thing for your situation. If you decide to consolidate your loan you may end up paying a higher interest rate, or change the terms of your loan, where the interest is now due, when previously you had an interest deferred loan. Once you consolidate your Sallie Mae student loan, you cannot go back and change it to the way it previously was.Also, you may no need to consolidate your loans in order to get lower interest rates and one monthly payment. Sallie Mae can combine the payments from the various loans, both federal and private, into one convenient monthly payment without having to consolidate your loan.Check with your lending institution, they can provide you with the information you need in order to make an informed decision. A Sallie Mae student loan consolidation may be the best solution for you.
Student loan consolidation help is a good solution to students who are in debt because of all of the loans that they needed in order to pay for school.Student loan consolidation is basically the combining of two or more student loans. The point behind this is to allow the student to pay only one low monthly payment, based on what they can afford. This allows people who are in a bad financial situation to live a little easier.If you just take a look around you can find hundreds of options for student loan consolidations, as well as other consolidations for other types of debt.Looking at student loan consolidations, you will find that there are two major types of student loan consolidations. They are the federal student loan consolidation and private student loan consolidations. Though you are able to combine federal loans with private loans it is a bad idea. When you combine the two different types, you lose all of the benefits that you are offered with federal student loans but can’t get from using private loans.First and foremost, with federal student loan consolidation the interest rates you pay can be tax deductible. That is a good benefit that you would have no chance at getting if you were to consolidate them with private loans, or if all you had were private loans.Next comes the possibility of being forgiven for certain federal loans when you go to consolidate them. Again, if you were to combine them with private loans, or if all you had were private loans, you would not have a chance at this.And finally, for some who might need this, there is a possibility for you to defer your payments if you need to go back to school. You again can’t take advantage of this benefit if you have just private student consolidations, nor if you mix private with federal student loans.If at all possible, you want to use only federal student loans. Remember that when you go to get student loans consolidated, you need to be sure to keep federal loans separate from private loans.When you decide on a student loan consolidation, you need to pay close attention to the interest rates they charge. If all of your rates are the same, then it will be slightly higher, but you will have no extra fees, and you will have a monthly price set based on what you can afford. If the rates are different then they will calculate an interest rate that will land somewhere between your highest rate and your lowest rate. When they tell you that your interest rate will be lower, it isn’t really true. It will just be lower than your current higher rate.If you come across a place that asks for an up-front fee then you should be wary. These are scams. That’s not to say that everything that has a fee is a scam, just the ones that ask for the fees in the very beginning.
Student loan consolidation is a debt repayment solution that most borrowers opt for however what most of these people don’t know is that there are disadvantages that come with this option. What are these?One main disadvantage is that though you may be paying lower monthly interest rates when you consolidate your educational loans, these interest savings may still be eaten up because you are losing on discharge benefits.Also, you are most likely to lose borrower’s benefits that apply on your individual loans if you opt for student loan consolidation. These borrower’s benefits include rebates and interest rate discounts. Such benefits can actually cover for the low interest rates that usually come with college educational loans so it is better to weigh all available options when repaying your debts.One more disadvantage (though this affects very few cases only) is that repayment of college loans through consolidation can end up more costly than when done the ordinary way. The interest rate of consolidated loans is the average of all individual loans. If one loan has a high interest rate, this may end up increasing the overall interest rate that you will be paying.Your personality can also affect your loan repayment choices. Having several outstanding debts ranging from mortgages, credit card loans, health insurance loans, etc. may render you incapable of coping with the necessary commitments of eliminating your debts all at once. Make sure that your other loans can be consolidated with your college loans in a beneficial way should you prefer this method of repayment.Some student loan consolidation plans also have pre-payment penalties so avoid these types of plans. Also, to avoid extra payments in the future, make sure that there are no penalties involved in case you default on payments which may happen in case you lose your job or source of income.
Depending upon the type of student you were, your college experience was either filled with stress, studying and the excitement of reaching new learning vistas – or it was filled with beer, parties, and hanging out with lots of members of the opposite sex.Either way, it is a fact that you – like all college students – had to come up with a way to pay for the whole experience. Whether you attended a less expensive state school as an in-state resident or whether you went to a fancy-schmancy private university, your student loans likely run into the tens or even hundreds of thousands of dollars.The reality of having to repay all of those loans hits most grads at one of the worst-possible times: just a few months after graduation. Just when you are faced with the need to find a job, get an apartment, and generally get your post-college life on track, you get hit with your first student loan bill.Things can even be worse if you have multiple loans, given that you are having to manage multiple payments at once.However, for those with multiple loans, there is a bright side: you are likely to be eligible for private student loan consolidation.Who Qualifies For Private Student Loan Consolidation?If you have more than one student loan through a private lender (i.e., not the federal government but rather through a private bank), you are eligible to consolidate your student loans through a private consolidation lender.You should consider consolidating if you are less than half-way through your repayment period, if you want to reduce your monthly payments, and/or if you believe your credit score has improved since your initial loans were received.How Your Consolidation Loan Interest Rate Is DeterminedFor private loans, your consolidation loan interest rate is determined by a combination of the going prime rate – or other major right like the LIBOR – and your credit score. Of course, your private lender will have some discretion as to your new interest rate, which is precisely why it pays to shop your rate around with multiple lenders.3 Steps To Finding The Best Bank For Student Loan ConsolidationHere are 3 steps to finding the best bank for private student loan consolidation:1. Start with a list of at least 3-5 banks: Do your research online to get together a list of at least 3 to 5 banks who specialize in private student loan consolidation. Remember, it is very unlikely that your first offer will be your best, so by researching multiple banks you will have a much better chance of potentially saving thousands of dollars in interest over the life of your loan.2. Visit their websites: These days, there is nothing like the Internet in terms of conducting efficient, fast and comprehensive research. Start with each company’s website. If you like one or more sites and have the time, order an information packet through the mail.3. Apply to at least 3 of them: Once you have found at least 3 lenders you like based upon your research, apply to all of them. When the offers start rolling in, be sure to wait for all of the offers before making a decision.Follow these tips in order to find the best bank for your private loan consolidation.
Many students will bear witness that, in more cases than not, one will need to apply for a student loan to cater for tuition fees through their college studies. It has become relatively easy to acquire these loans, bearing in mind that many financial firms have been set up with the aim of bailing students out of financial difficulties. On the part of the student, one needs to keep in mind that repayment of the loan may not be as easy as borrowing it. This is why there is need to come with a strategy on how to manage the loan. The strategy should be formulated while one is still in college instead of waiting until when you are hassling to get a job.Remember a few things about your student loan:1)The repayment period for your loan greatly depends on the amount of money that you have borrowed. Some take even up to 30 years to repay, and it is therefore up to you to be financially responsible, so that you can clear off the debt within the shortest time possible.
2)The sooner you get your loan cleared, the lower the interest you will be subjected to. These are terms that you can get to agree on with your lender the moment you sign up an agreement for the loan with them. This is to say that, for you to be able to effectively manage your student loan, you must do a lot of hard work as you set out to look for a lender.
3)Getting a lender who will give you favorable rates, terms and conditions for the loan is not very easy and you must shop around, online or otherwise.For some tips on how to manage a student loan remember:1)It is always advisable to go for financial counseling before signing that loan agreement with any lender. The more knowledge you can gain regarding borrowing and repayment, the better placed you will be to prepare yourself for the task ahead.
2)Once you are through with your college education and it is time to start repaying the loan, calculate just how much you will need to pay every month and start keeping this money aside every month without failure.
3)If the minimum amount required by the lender is not affordable, look for other repayment plans that are available. Among them is the student loan consolidation plan.Student loan consolidation will be effective for you if you owe multiple lenders. Consolidation always ensures that you repay at cheaper rates, consider this option if you have a federal student loan. If possible and in order to reduce the risk of forgetting to make a payment, make your repayment automated. This is to say that they will automatically be deducted from your account on the due date every month. Automated repayments will also earn you discounts on the interest rates. To manage your student loan even more effectively, please make sure that you notify your lender when you are faced with an economic hardship that makes you unable to repay. If not be prepared to be slapped with a penalty fee for default.
Your student loans have all been assigned a different variable interest rate over the years. Variable means that your interest rate will increase when the current interest rate goes up or will decrease if the interest rates should happen to drop. Each student loan you may have could have different interest rates and they may even have changes yearly. Keep in mind that interest rates are more likely to go up when you get them at a low rate and keep increasing until you get the loan paid in full. A more stable interest rate may be obtained by getting a student loan consolidation.With a ten year student loan consolidation plan, you can lock in the current loan rates for the life of the loan and save lots of money at the same time. Another benefit to consider with a student consolidation loan is the freedom of having only one payment to manage. By reducing the amount of loans you have to manage you also will reduce the amount of lenders you have to deal with over the years giving you less of a burden. Some lenders also will give you a break on the interest rate for paying on time for a set period of time or offer other discounts in the interest rate for having your monthly payment automatically deducted each month from your checking or savings account.Interest rates are not the only reason to get a student consolidation loan. If you are starting to have trouble managing your debt for one reason or another, you can get a student consolidation loan to lower your total monthly payment. Having many payments to make can be time consuming to maintain, especially if your payments are to be made at different times of the month. You might forget to send in one of your payments and fall behind in your credit score making it difficult for you to acquire new credit when the time comes. Having many different student loans to manage could lead you into student loan default if you are having trouble with your payments. It is best to spend the time to look into what kind of student loan consolidation you will qualify for before it gets any worse.Student loan default is a very serious issue that can never be fixed on its own. A student consolidation loan can help save on interest charges and also assist you to work towards getting your debts paid off as soon as possible, because ignoring the debt will only lead to damages on your credit score.