Student Loan Consolidation ??

As far as debt consolidation is concerned, student loans are considered to be the basic factor which has contributed to the overall debt situation of the country as compared to any other debts. As a matter of fact, not even credit card debts have accounted for so much of the financial crisis as the student debts have. It is obvious therefore, that student debts should not be left unattended for a longer period of time. As we all know that the completion of education or attaining a college degree is perhaps the greatest moments of triumph in one's life. However, the burden of debts can sometimes make it a little difficult to enjoy these moments in the true sense. The debt consolidation services are by far the best known methods to resolve student debts. In this procedure, the entire amount of debts accumulated by the students is to be merged into a single amount and the entire range of debts is repaid in a much more affordable structure. In short, the debt consolidation procedure will combine all the debts into a single amount and the student will have the accessibility of making one payment to the creditor instead of making several payments in a row. The chances of missed payments will also get reduced drastically in the process. In addition to all this, through the process of consolidating the student debts, it is possible to save hundreds and thousands of dollars which the students would have otherwise paid to the creditors. Usually, the consolidation process involves the debt consolidation loans which are largely considered by the citizens. Although, securing loans will definitely mean that the students will have to bear interest amounts but even in that the interest amount will be one rather than smaller interest which are relatively difficult to handle.

The loan repayment tenure can also be changed with the help of a debt consolidation process and it can usually be stretched for a longer period of time may be for a 20 to 30 year time period before the debts get settled. As far as the issue of credit score is concerned, it is one of the most important determining factors for the students to step into their professional lives. The FICO scores which are calculated by the credit rating agencies go a long way in deciding the nature of employment of the students and other factors such as getting a house, car or other necessary stuff. A low credit score is necessarily bad and it will act as a major obstacle in getting ahead in life or the student will likely face an array of denials in life.

On the basis of the debt situation, the students can expect to get help through various online debt consolidation programs and the lenders may also decide to approve on the loans. The best way is to shop around for the best rates and the best lenders before opting for the consolidation options.

Student Loan Tips and Guidelines for the New Student

With the unsteadiness of today's economy and the amount of people getting laid off, more and more people are looking at what they can do to improve their quality of life, and employment! Many people are choosing to go back to school because they have the free time now but also because they are tired of putting everything into a job that won't put anything back into them. Here we'll put together some tips for you to help you get started and to be able to take advantage of the different types of financial aid that is out there including federal student loans.

With the record number of layoffs and unemployment rates, students that weren't eligible for financial aid then could be now. The FAFSA (Free Application for Federal Student Aid) should be filled out every year even if you think you won't qualify.

Deadlines
financial aid applications have deadlines and they should always be met. Different colleges have different deadlines it's up to you to keep on top of the dates. If you miss the date, the schools hands are tied and they will not be able to help you.

Family Contributions
The amount that your family can contribute basically means how much money the parents can add to help offset the expenses of college. This amount is determined by the college and based on the information that was provided in the FAFSA any other financial aid forms that were turned in. The family contribution is given in a dollar amount but not all the time is how much a family will pay. The amounts can vary from college to college.

Total Costs of College
One of the biggest mistakes future students make is that they don't sit down and figure out how much money they need ahead of time. Being ahead of the game is half the battle. You'll need to calculate up costs for textbooks, supplies, and anything else you might need on top of the tuition.

Eligibility vs. Need
If a student is eligible for a Pell grant, the school must and will give out all of the funds to you. This doesn't mean though that you are automatically eligible for any other types of aid. The best thing about the Pell grant is that they don't have to be paid back!

Need based and Merit based
Merit based is only concerned with a students academic performance whereas need based is based on the student's or student's families financial circumstances.

Types of financial aid
There are many different types of financial aid for students. It's important for you to be very versed in what they are and which ones you can qualify for. The reason I'm saying this is because sometimes not all the options are laid out for you when you visit a school. The areas to be aware of are the federal student loans, private student loans, scholarships, and grants.

Three Effective Tips for Private Student Loan Consolidation

Would it not be nice to take all your private student loans and wrap them into one loan. You can do that with private student loan consolidation lenders. Right now you are probably paying two or more lenders different amounts each month, on different days of the month, at different interest rates, and each with different pay off dates or maturities.

Roll It All Into One
Of course, this situation can be somewhat overwhelming. The cost in postage and stationery alone is enough to set you back. And two great big student loans can leave a hapless former student feeling somewhat hopeless. Never fear - student loan consolidation is here.

What Consolidating Does
By consolidating your private student loans, you can have one payment, one amount (probably with a sum much less than the two or more you are presently carrying), on one day of the month, at one interest rate, and with one maturity date. And, if you are not careful, you can have one big problem.

Three Effective Tips
Many variable come into play when considering what you need to do to get your student loans into a manageable form. If you are not prudent and careful, if you do not shop around for the best interest rates, the best repayment terms, the lowest administrative fees, you could be making moves that will cost your hundreds, perhaps thousands, over the cost of your new student consolidation loan. And that is not what you had in mind, is it?

Effective Tip One - Interest Rates
The first thing you need to do is go online and find a weighted interest rate calculator. This will give an average interest you are paying right now with your multiple private student loans. That weighted interest rate is what you want to aim for when you apply for a student loan consolidation.
If you can, try to get a rate lower than that calculated. Pay no attention to market rates, you want an interest at, or lower than, what you are now paying. If you hold your ground, your lender will come around. They want your business after all.

Effective Tip Two - Fees and Penalties
This is very important. Lenders tend to elide over these facts. You want to know if there are late fees and what is the cost. What about carrying fees and other administrative fees? Consolidation lenders should not ask for application fees, or credit check fees.
If they do, refuse them and find another consolidation lender. Policies vary widely from lender to lender so be sure you get the skinny on any incurring or recurring fees. Do not sign anything until you completely understand it.

Effective Tip Three - Marketing Promotions
Beware of incentives or marketing ploys the consolidation lender may be using to lure unsuspecting borrowers. All too often, fantastic interest rates, very easy initial payment terms, and other little trinkets are offered. After reading the fine print, you suddenly discover that you have signed a variable interest loan, the payment will double in the next year, and all sorts of other nasty terms become apparent. Remember, if it sounds to good to be true, it is not true. Consolidation can be a godsend, do not let it turn into a devil's dream.

Consolidating Private Student Loans

Tuition fees are continually on the increase, so it has now become expedient for any college student to rely on student loans in order to study for a degree. However, repaying student loans tends to be quite hard for students to do, most of all in the beginning where their income is still much lower compared to what they could actually be earning. That's why consolidating student loans is a great option for a lot of new college graduates to look into.

Consolidating private student loans pretty much works like any other consolidation program.

One singular lender will take on several loans that you may have accumulated, such as HEAL, NSL, Perkins, Stafford, and other private loans.
The actual repayment conditions and terms may differ among these various lenders; one singular company will pay off all your loans and replace them with a single loan to pay off over a long-term. Generally, students choose to go for repayment plans that last a decade or three. Naturally, if you take a longer term, your payments per month will be lower too.

Student loan consolidation provides you with a chance to stretch all your payments in order for you to take full advantage of what you could be earning in the future. It is fairly reasonable for a lot of students to assume they can earn more money as their career progresses, so by stretching out all of the repayments, they will not have to worry about paying the majority of the loan during the earlier period of the loan. Another advantage in programs of consolidating student loans is the fact that they get rid of a lot of problems and confusion when it comes to paying back student loans.

For fresh graduates whose loans stem from various private and public lenders, trying to keep up with one-of-a-kind conditions and terms of each loan could prove to be quite frustrating. Because of this, one well-known option exists; however, this option comes with a cost.

Any kind of loan consolidation tends to be very attractive to lenders since they can ask you for fairly high fees for consolidation. While the consolidation of student loans comes with better regulation than the majority of other forms, loan consolidation companies are still capable of adding some fees to the loan's principal, which you will have to pay off later.

You can avoid all this by insisting on paying every consolidation fee straight up. By doing so, you make sure that at least you know how many charges you are getting. Another predicament that may come with consolidating loans is that although you can extend it up to fifteen years, your interest will significantly increase on the loans. Interest accumulates as time goes by, meaning that if you delay paying off the loan, you will get accrue more interest.

A lot of students do not seem to notice that fact and only concentrate on the rate of interest instead of the overall interest amount that needs to be paid off through the loan's life.
Consolidating private student loans is an essential tool for any student who wishes to defer the repayments until more money becomes available or for those who find it difficult to manage several single loans. However, it is still essential for fresh graduates to take all points under consideration, no matter what other lenders may say to you. Be aware of both the pros and cons of consolidating private student loans, so you can come up with smart decisions on whether consolidating students loans is an ideal choice for you.

Paying for College: Student Loans or Credit Cards?

Research conducted by student loan company Sallie Mae shows that in 2010, about 5 percent of college students paid an average of more than $2,000 in tuition and other educational expenses using a credit card to avoid taking out student loans. The same study showed that 6 percent of parents used credit cards to pay an average of nearly $5,000 in educational expenses for their college children.
Is using credit cards a smart way to avoid college loan debt? Financial advisors are in near-universal agreement that the answer is no, but that isn't stopping thousands of families from using credit cards in place of parent and student loans.

Some families might think that all debt is equal; others might think that they won't qualify for college loans. So what advantages exactly do education loans offer over credit cards?

1) Availability
Particularly in the last few years, as credit card companies have tightened their credit requirements in a retraction of the lax lending that led to the foreclosure crisis, credit cards have become harder to qualify for, available mostly only to consumers with strong credit. Many consumers with weaker credit have had their credit lines reduced or eliminated altogether.
Federal college loans, on the other hand, are available with minimal to no credit requirements. Government-funded Perkins loans and Stafford loans are issued to students in their own name without a credit check and with no income, employment, or co-signer required.
Federal parent loans, known as PLUS loans, have no income requirements and require only that you be free of major adverse credit items - a recent bankruptcy or foreclosure, defaulted federal education loans, and delinquencies of 90 days or more.
In other words, don't turn to credit cards simply because you think you won't qualify for school loans. Chances are, these days, you're more likely to qualify for a federal college loan than for a credit card.

2) Fixed Interest Rates
While most credit cards carry variable interest rates, federal student and parent loans are fixed-rate loans. With a fixed interest rate, you have the security of knowing that your student loan rate and monthly payments won't go up even when general interest rates do.
Many credit cards will also penalize you for late or missed payments by raising your interest rate. Federal school loans keep the same rate regardless of your payment history.

3) Deferred Repayment
Repayment on both federal student loans and federal parent loans can be postponed until six months after the student leaves school (nine months for Perkins undergraduate loans).
With credit cards, however, the bill is due right away, and the interest rate on a credit card balance is generally much higher than the interest rate charged on federal school loans.
If you're experiencing financial hardship, federal loans also offer additional payment deferment and forbearance options that can allow you to postpone making payments until you're back on your feet.
Even most private student loans - non-federal education loans offered by banks, credit unions, and other private lenders - offer you the option to defer making payments until after graduation.

Keep in mind, however, that even while your payments are deferred, the interest on these private student loans, as well as on federal parent loans and on unsubsidized federal student loans, will continue to accrue.
If the prospect makes you nervous of having deferred college loan debt that's slowly growing from accumulating interest charges, talk to your lender about in-school prepayment options that can allow you to pay off at least the interest each month on your school loans so your balances don't get any larger while you're still in school.

4) Income-Based Repayment Options
Once you do begin repaying your college loans, federal loans offer extended and income-based repayment options.
Extended repayment plans give you more time to repay, reducing the amount you have to pay each month. An income-based repayment plan scales down your monthly payments to a certain allowable percentage of your income so that your student loan payments aren't eating up more of your budget than you can live on.
Credit cards don't offer this kind of repayment flexibility, regardless of your employment, income, or financial situation. Your credit card will require a minimum monthly payment, and if you don't have the resources to pay it, your credit card company can begin collection activities to try to recover the money you owe them.

5) Tax Benefits
Any interest you pay on your parent or student loan debt may be tax-deductible. (You'll need to file a 1040A or 1040 instead of a 1040EZ in order to take the student loan interest deduction.)
In contrast, the interest on credit card purchases, even when a credit card is used for otherwise deductible educational expenses, can't be deducted.
To verify your eligibility for any tax benefits on your college loans, consult with a tax advisor or refer to Publication 970 of the IRS, "Tax Benefits for Education," available on the IRS website.

6) Student Loan Forgiveness Programs
Whereas the only way to escape your current credit card debt is to have it written off in a bankruptcy, several loan forgiveness programs exist that provide partial or total student loan debt relief for eligible borrowers.
Typically, these loan forgiveness programs will pay off some or all of your undergraduate and graduate school loan debt in exchange for a commitment from you to work for a certain number of years in a high-demand or underserved area.
The federal government sponsors the Public Loan Forgiveness Program, which will write off any remaining federal education loan debt you have after you've worked for 10 years in a public-service job.
Other federal, state, and private loan forgiveness programs will pay off federal and private student loans for a variety of professionals - veterinarians, nurses, rural doctors, and public attorneys, among others.
Ask your employer and do a Web search for student loan forgiveness programs in your area of specialty.

student loans, tax benefits for education 

Jeff Mictabor is an enthusiast on the topic of student loan issues in the news. He has been writing for the past 10 years for a variety of education publications. He now offers his writing services on a freelance basis.

Future With Graduate PLUS Loan

With the increased need of higher education for the many students and graduates in the United States of America, there are many education establishments that offer many different major college degrees to those who want a higher education to get a better future for them self. There are of course obstacles for those who are pursuing these improvements. Most people have limited funding to pay for college tuition or are having difficulties in managing their time to work and go to college. More problems for these guys is that if they stop doing their job to focus on their education then they will be unable to pay for their education. For every problem however, there is a solution. As long as you are patient enough, you can search for many financial related solutions for your limited funding problems.

One of the solutions for your problem is the Graduate PLUS loan. The GradPLUS loan or the Graduate PLUS loan is a fixed low interest rate student loan that is guaranteed by the United States Government. While most federal aids are need based and are given without the need of paying them back, the Graduate PLUS loan is designed to be a credit based loan that is guaranteed by the federal government to have a fixed low interest rate. This particular loan is designed to allow you as a graduate student to borrow money as much as the total cost of their graduate school needs. The amount of money that is allowed to be borrowed will be including tuition, your boarding, supplies, laboratory expenses, and your travel expenses. In short, any type of expenses that is related to your education needs can be a subject to this loan.

There are many benefits in getting this type of loan. One of such benefits is in regard of the interest rate the lenders are charging you. While you may get fluctuating rates from a private student loan company, you will not be getting that kind of insecurity if you get your loan from the graduate PLUS loan. You will get a fixed interest rate of 7.9% on your loan. You can compare this to other student loans and I am sure that you will not find many that offers better rate. Another great feat in this loan is that you can defer your payment while you are still studying in school. This way you will not need to get a lame part time job to pay for your loan while you are still in school. You also do not need a co signer to sign for your loan, this would mean that the loan is your own responsibility and as an adult you will be in charge of your own debts. The good thing is for most grad students the interest is tax deductible. That's another load off your shoulders.

To get the loan you would of course need to apply to see if you are eligible or not in receiving the GradPLUS loan. This might be a problem to some students who comes from a rather poor family. With Graduate PLUS loan however, you don't have to worry much because your eligibility is not based on your family or personal income level, your financial need or personal assets. However, you would have to pass a credit check to be eligible of getting a graduate plus loan. After your eligibility to get the loan is confirmed, you can get your loan with a maximum amount of the total amount of your education cost minus the total amount of other financial aid you are receiving. So for an example, you are having financial aid from a student grant program for $20,000 and you want to apply for a graduate PLUS loan. The maximum amount of money you can borrow would be the total cost of your education cost (lets say $50,000) minus your other financial aid of $20,000. With this formula then you can borrow up to $30,000 on your graduate PLUS loan.

If you succeed in getting the loan, your lender will be sending your funds to your school. Your school will then disbursed your funds in at the very least two installments. These installments amounts will not exceed half of the loan amount you were granted. These funds will be then allocated to pay your tuition and other education expenses you might be having. You would have to spend all these loans for your educational expenses, so how the loan is used will be monitored very closely. To make it easier for you, if you already qualified for a Graduate PLUS Loan you will not be required to have an adverse credit history or have extensive credit reports like some private education loan lenders would be asking of you. This is why you should really try and apply for this type of loan to make your future brighter by having a major degree.

Debt Consolidation - Student Loans

For many students graduating from college the last thing on their minds is how to repay the many loans they may have accumulated over the course of their studies. They are frequently more focused on celebrating graduation as well as finding a job. However, it doesn't take long for multiple bills to start coming in as, rarely, does a single provider cover all costs associated with higher education.

For those facing the dilemma of impending multiple student loans there are debt consolidation programs designed to combine payments so they are more affordable for those who will, likely, begin employment at the bottom level. Depending on the career choice, the amount of net income can vary widely and, sometimes, the income will not cover all payments once they are totaled.

The majority of consolidation loans extend the repayment period once loan amounts are combined and a total is calculated. For graduates this makes the cost of borrowing more affordable, but it's important to remember that the longer it takes to repay a loan the higher the repayment since interest will accrue for a longer period of time. Therefore, it's best to repay as much as possible while still in school in order to prevent being burdened by debt upon graduation.

These loans have many benefits that serve to relieve financial stress while trying to start a new life. The overall interest rate is generally lower since the length of the loan is extended. These loans are frequently locked into a fixed rate rather than changing over time. The result is lower payments and the ability to have the peace-of-mind that comes with knowing that multiple payments will not be coming in the mail every month.
To figure out how much you would have to repay you can calculate payments based on a simple method. Let's say that you have $40,000 worth of combined loans by the time you graduate. Part will be at an 8% interest rate while others will be higher. Therefore, for every $1000 you borrowed you would repay about $200 per year. Once combined at a lower interest rate and extended to 10 years, however, you would repay $100 per year. By reducing the overall payment more available cash is provided. If loans have gone delinquent, late fees and over-limit charges can also be included or eliminated all together on consolidation occurs.

For many graduates student loan consolidation is the only viable option in order to prevent bankruptcy, for which student loans cannot be excused, or falling into arrears. It's important to research companies carefully who provide these types of loans. Understanding origination fees, repayment penalties, periods of repayment,

Student loan consolidation tips guide

During their student life, students accumulate a number of loans to secure their college degrees. These loans prove to be helpful for a while, however when the time for their repayment arrives, their numerous monthly installments with different interest rates pester the students causing them to lose their sleep and get diverted from the path of success in their career. Hence, the most desirable thing to do to avoid this kind of situation is to opt for a Student Loan Consolidation.

Student Loan Consolidation is basically a loan which absorbs all the previous loans taken by a student to finance his studies and other needs. By consolidating all his loans a student saves his time and effort as it is much easier to handle one payment monthly than several separate payments. Secondly, a consolidated student loan carries a lower interest rate than the various other student loans. Moreover when a student opts for a consolidated loan he has to pay only one interest rate, not several different rates. Also, a consolidated loan offers more flexible repayment options than the other loans. This type of loan is also generally free of any kind of prepayment penalty.

Student Loan Consolidation rates might vary depending upon the student’s financial situation. It will be very easy to acquire an excellent Student Consolidation Loan plan if one has a credit score of more than 660 (FICO score). Different lenders offer different monthly plans according to the student’s loan situation. Some lenders might offer 50% lower monthly plans than others. A student should review the terms and conditions of all the lenders and should select the one who offers simplest repayment options with a monthly payment that will not become a burden for him.

While considering consolidation a student should always opt for fixed interest rate rather than floating rate. This reduces the element of uncertainty and clearly defines what one has to repay in future. Hence, one should always choose a lender who is offering the lowest fixed interest rate. One should select the payment period, which does not burden him in any way. This is very significant as the rate of interest and monthly installments are both calculated according to the duration of the loan. Whether the lender will be able to extend the payment period according to the needs of the borrower should also be enquired first. Above all, it is recommended that a student should avoid Student Loan Consolidation if he has already paid a major part of his loans because opting for consolidation on this stage can reset the loan process, which will ultimately make him pay more than what he had planned for.

Keeping these tips in mind a student should first do his homework by carrying out a survey of what the numerous Student Loan Consolidation companies are offering him and then go for the best deal that will make it easier for him both financially and psychologically to get rid of his debt.