The United Negro College Fund (UNCF) has serious reservations about the Clinton Administration's national volunteer service and direct student loan programs.
In the keynote speech at the annual Council for Advancement and Support of Education (CASE) national assembly in Washington, D.C., William
"Instead of concentrating resources on motivating young people to serve and providing more opportunities before, during and after college for people of all ages," said Gray, "H.R. 2010 provides costly subsidies to select individuals engaged in full-time national or community service.
"In our view," Gray continued, "H.R. 2010 needlessly limits opportunities for service while expending extraordinary costs per volunteer--150,000 slots over about a four- or five-year period at a cost of $7.4 billion. Under the existing Pell grant program, you could provide 5 million more people opportunities for higher education."
Gray told the assembly, "We don't need to provide my child or Jay Rockefeller's child subsidized public service to pay off his school debt. What we'd better be doing is investing the limited dollars we have where they will do the most good, and that means giving it to people based on need. The proposed program provides economic assistance precisely where we don't need it."
Gray also criticized the direct lending concept that has been proposed to fund the national service program, noting that having the loan program administered on college campuses rather than through outside lending institutions would present a hardship for small- to medium-size colleges.
"The United Negro College Fund presidents have been on record for the last three years in opposition to direct lending as it's constituted because we're not sure that the Department of Education, even under its capable new leadership, would be able to effectively administer a program such as this," he said.
* In a session entitled, "Building Community Ties After a Natural Disaster," Daniel Kalmanson, director of media relations, Florida Atlantic University, urged fund raisers to follow five steps in dealing with a natural disaster: 1. Review and update your crisis plan on an annual basis. 2. Update your emergency contact list. 3. Make sure you have a battery-operated computer and a cellular phone for use in an emergency. 4. Be flexible. 5. Don't forget the human element.
Tuesday, June 2, 2009
Local Student Loan Business a Family Affair
With a June 30 deadline looming to lock in lower fixed rates on consolidated student loans, the people at Goal Financial LLC are busier than ever.
The San Diego-based tender specializes in making federal guaranteed student consolidation loans, essentially refinancing multiple student loans at variable rates and converting it to a fixed rate over the full term.
"We had a record week last week and this one coming up we should break that record in terms of loan applications," said Ryan Katz, Goal Financial's chief executive and co-founder.
Three-year-old Goal Financial fielded about $100 million in loan applications for the week beginning June 13, he said.
Coincidentally, Ryan's older brother, Cary, is in the same business. He heads up another privately held student loan company in San Diego called College Loan Corp., which is also seeing a surge in business in recent weeks, driven by the impending increase on interest rates charged for student loans.
Mark Brenner, College Loan Corp.'s president, said with the interest rates on student loans ratcheting up nearly 2 percent starting July 1, many student borrowers are eager to lock in a fixed rate that could save them a considerable amount of money during the life of the loan.
According to a spreadsheet assembled by College Loan Corp., a student borrower with $20,500 in outstanding principal could save at least $2,272 over 10 years, compared with maintaining the variable rate loan.
The savings are even better if a borrower consolidates the loan within six months of graduation, or agrees to have the loan payments withdrawn automatically from their accounts, said College Loan Corp. spokeswoman Tracy Neumann.
As College Loan Corp.'s loan portfolio has expanded, so has its employment. It now has 505 staffers, compared with 450 at the end of 2004, Neumann said.
"We have about 37 openings right now in a range of positions in operations to sales and marketing," Brenner said.
Goal Financial said its loan portfolio today is more than $5 billion, making it the ninth largest of all student lenders. The largest, by far, is SLM Corp., better known as Sallie Mae. The former government agency and now publicly traded firm holds more than $100 billion in student loans.
The San Diego-based tender specializes in making federal guaranteed student consolidation loans, essentially refinancing multiple student loans at variable rates and converting it to a fixed rate over the full term.
"We had a record week last week and this one coming up we should break that record in terms of loan applications," said Ryan Katz, Goal Financial's chief executive and co-founder.
Three-year-old Goal Financial fielded about $100 million in loan applications for the week beginning June 13, he said.
Coincidentally, Ryan's older brother, Cary, is in the same business. He heads up another privately held student loan company in San Diego called College Loan Corp., which is also seeing a surge in business in recent weeks, driven by the impending increase on interest rates charged for student loans.
Mark Brenner, College Loan Corp.'s president, said with the interest rates on student loans ratcheting up nearly 2 percent starting July 1, many student borrowers are eager to lock in a fixed rate that could save them a considerable amount of money during the life of the loan.
According to a spreadsheet assembled by College Loan Corp., a student borrower with $20,500 in outstanding principal could save at least $2,272 over 10 years, compared with maintaining the variable rate loan.
The savings are even better if a borrower consolidates the loan within six months of graduation, or agrees to have the loan payments withdrawn automatically from their accounts, said College Loan Corp. spokeswoman Tracy Neumann.
As College Loan Corp.'s loan portfolio has expanded, so has its employment. It now has 505 staffers, compared with 450 at the end of 2004, Neumann said.
"We have about 37 openings right now in a range of positions in operations to sales and marketing," Brenner said.
Goal Financial said its loan portfolio today is more than $5 billion, making it the ninth largest of all student lenders. The largest, by far, is SLM Corp., better known as Sallie Mae. The former government agency and now publicly traded firm holds more than $100 billion in student loans.
Student Loan Changes
The first of July is an important date for federal student loans, when interest rates and other terms change. This year, besides the drop in costs for many loans, borrowers in public service professions can take a major step toward student loan forgiveness. Among the July 1 changes:
The fixed interest rate for new, subsidized Stafford loans will drop from 6.8% to 6.0% for undergraduates. Subsidized Stafford loans go primarily to students with family incomes under $80,000, and the government pays the interest while the student is in school (or in deferment). Also, the origination fees for all Stafford loans (subsidized and unsubsidized, undergraduate and graduate) will drop by half a percentage point, to 2% of the amount borrowed.
* More Loans Available. Undergraduates can borrow an additional $2,000 each year in unsubsidized Stafford loans at a fixed rate of 6.8%. Therefore, the total amount of Stafford loans (including subsidized and unsubsidized) that undergraduates can borrow increases to $31,000 for dependent students and $57,500 for independent students. Moreover, students who are interested in teaching and have good grades can receive another $4,000 each year for up to four years via the TEACH program. (TEACH grants become unsubsidized Stafford loans if students do not fulfill a teaching obligation.).
Public Service Loan Forgiveness (PSLF). PSLF is a new federal program that will forgive remaining federal student loan debt after 10 years of qualifying payments and eligible full-time employment. The program is designed for borrowers whose income is low relative to their debt for at least some of their time while in a public service job. (Public service includes employment by federal, state, local, or tribal governments, including the military and public schools and colleges, and by non-profit entities.).
However, PSLF only forgives debt in the Direct Loan program. Thus, to begin making qualifying payments: (1) borrowers who have already consolidated their federal loans with a private lender can reconsolidate into the Direct Loan program to become eligible; (2) once in the program, borrowers can choose one of three repayment plans to qualify: income-contingent repayment, income-based repayment (available in July 2009), or standard (10-year) repayment; and (3) borrowers who have not consolidated their federal loans can apply for a Direct consolidation loan at any time, and those who already have Direct Loans can switch repayment plans at any time.
The fixed interest rate for new, subsidized Stafford loans will drop from 6.8% to 6.0% for undergraduates. Subsidized Stafford loans go primarily to students with family incomes under $80,000, and the government pays the interest while the student is in school (or in deferment). Also, the origination fees for all Stafford loans (subsidized and unsubsidized, undergraduate and graduate) will drop by half a percentage point, to 2% of the amount borrowed.
* More Loans Available. Undergraduates can borrow an additional $2,000 each year in unsubsidized Stafford loans at a fixed rate of 6.8%. Therefore, the total amount of Stafford loans (including subsidized and unsubsidized) that undergraduates can borrow increases to $31,000 for dependent students and $57,500 for independent students. Moreover, students who are interested in teaching and have good grades can receive another $4,000 each year for up to four years via the TEACH program. (TEACH grants become unsubsidized Stafford loans if students do not fulfill a teaching obligation.).
Public Service Loan Forgiveness (PSLF). PSLF is a new federal program that will forgive remaining federal student loan debt after 10 years of qualifying payments and eligible full-time employment. The program is designed for borrowers whose income is low relative to their debt for at least some of their time while in a public service job. (Public service includes employment by federal, state, local, or tribal governments, including the military and public schools and colleges, and by non-profit entities.).
However, PSLF only forgives debt in the Direct Loan program. Thus, to begin making qualifying payments: (1) borrowers who have already consolidated their federal loans with a private lender can reconsolidate into the Direct Loan program to become eligible; (2) once in the program, borrowers can choose one of three repayment plans to qualify: income-contingent repayment, income-based repayment (available in July 2009), or standard (10-year) repayment; and (3) borrowers who have not consolidated their federal loans can apply for a Direct consolidation loan at any time, and those who already have Direct Loans can switch repayment plans at any time.
Student loans and the credit crisis
The news earlier this month that the New Hampshire Higher Education Loan Corp., or NHHELCO, was suspending its alternative student loan programs may have seemed like just a small part of a seemingly interminable spate of bad-to-worse news about the health of the nation's credit system.In some ways,it may be. But in one very important way, it is not.
NHHELCO--a conservatively run student loan organization that's respected by its peers throughout the country--has found itself a victim of the turmoil and uncertainty that are afflicting the nation's credit and capital markets. Normally--meaning just months ago--NHHELCO would find itself paying about 3 percent to bondholders in order to help fund its loan portfolio. Not a giant return, but one in line with an organization that was disbursing loans averaging about 6 percent annual interest.
At this point, student loans still average about 6 percent, but because a recent auction of student loan bonds flailed to attract suitable bids, NHHELCO and others participating in the bond issue will be forced to pay 18 percent to their bondholders. In short, the loan organizations now find themselves in an impossible situation.
Alternative loans are loans that are not backed by the federal government. They are made directly to students who need resources beyond that of the assistance they receive from the college itself, through the federal Stafford Loan program and from their families. In other words, if a year's college tuition is $18,000 and a student's aid package totals $10,000, the student would have had the option of taking out an alternative loan to fund the difference.
In 2007-08, NHHELCO disbursed 4,769 alternative loans to New Hampshire residents, and another 1,500 were disbursed to non-residents. Without the alternative funding, it's anyone's guess how many of those more than 6,000 college students will be able to continue pursuing their education. And that's only in the small state of New Hampshire.
This is an issue that must be addressed sooner rather than later. For years, we have been told about not just the importance, but the necessity, of education in the future of the American economy. The failure to enable tens or even hundreds of thousands of students to pursue their education because of an overheated, greed-fueled adventure into sub-prime mortgage lending would be nothing short of a national disgrace. A nation that can spend hundreds of millions, if not billions, on funding Iraq and Afghanistan's education systems has the moral responsibility to find a way to resolve this deplorable situation at home.
NHHELCO--a conservatively run student loan organization that's respected by its peers throughout the country--has found itself a victim of the turmoil and uncertainty that are afflicting the nation's credit and capital markets. Normally--meaning just months ago--NHHELCO would find itself paying about 3 percent to bondholders in order to help fund its loan portfolio. Not a giant return, but one in line with an organization that was disbursing loans averaging about 6 percent annual interest.
At this point, student loans still average about 6 percent, but because a recent auction of student loan bonds flailed to attract suitable bids, NHHELCO and others participating in the bond issue will be forced to pay 18 percent to their bondholders. In short, the loan organizations now find themselves in an impossible situation.
Alternative loans are loans that are not backed by the federal government. They are made directly to students who need resources beyond that of the assistance they receive from the college itself, through the federal Stafford Loan program and from their families. In other words, if a year's college tuition is $18,000 and a student's aid package totals $10,000, the student would have had the option of taking out an alternative loan to fund the difference.
In 2007-08, NHHELCO disbursed 4,769 alternative loans to New Hampshire residents, and another 1,500 were disbursed to non-residents. Without the alternative funding, it's anyone's guess how many of those more than 6,000 college students will be able to continue pursuing their education. And that's only in the small state of New Hampshire.
This is an issue that must be addressed sooner rather than later. For years, we have been told about not just the importance, but the necessity, of education in the future of the American economy. The failure to enable tens or even hundreds of thousands of students to pursue their education because of an overheated, greed-fueled adventure into sub-prime mortgage lending would be nothing short of a national disgrace. A nation that can spend hundreds of millions, if not billions, on funding Iraq and Afghanistan's education systems has the moral responsibility to find a way to resolve this deplorable situation at home.
House lowers rates on student loans
The U.S. House of Representatives voted to reduce interest rates on federal loans for college. The College Student Relief Act of 2007 (H.R. 5) was part of the Democrats' first 100 hours initiatives.
The legislation would cut interest rates on need-based federal loans
for undergraduate students to 3.4 percent from 6.8 percent between now and 2011. U.S. Rep. George Miller (D-Calif.), who introduced the bill, said the rate reductions will be funded by "making the program more efficient and effective tor students and the government, at no new cost to taxpayers." Fees for lenders would increase. Tuition and tees at four-year public colleges and universities have risen 41 percent after inflation since 2001.
The legislation would cut interest rates on need-based federal loans
for undergraduate students to 3.4 percent from 6.8 percent between now and 2011. U.S. Rep. George Miller (D-Calif.), who introduced the bill, said the rate reductions will be funded by "making the program more efficient and effective tor students and the government, at no new cost to taxpayers." Fees for lenders would increase. Tuition and tees at four-year public colleges and universities have risen 41 percent after inflation since 2001.
Social Security Payments Can Offset Student Loans
The government can offset a portion of a debtor's Social Security benefits against student loans that have been outstanding for over 10 years, the U.S. Supreme Court has ruled.
The plaintiff took out federally guaranteed loans in the 1980s, but couldn't repay them because of health problems and economic difficulties. His only income was Social Security disability benefits, which the government used to offset his loan payments.
The plaintiff filed for bankruptcy, and argued that the collection of his student loans was time-barred by the 1982 Debt Collection Act's ten-year statute of limitations.
The 9th Circuit disagreed, allowing the offset.
It said that while the Debt Collection Act created a ten-year statute of limitations, the 1991 Higher Education Assistance Act eradicated that time limit, and a 1996 amendment to the Debt Collection Act specifically allowed for the offset of Social Security benefits.
In a unanimous decision, the U.S. Supreme Court agreed.
The plaintiff took out federally guaranteed loans in the 1980s, but couldn't repay them because of health problems and economic difficulties. His only income was Social Security disability benefits, which the government used to offset his loan payments.
The plaintiff filed for bankruptcy, and argued that the collection of his student loans was time-barred by the 1982 Debt Collection Act's ten-year statute of limitations.
The 9th Circuit disagreed, allowing the offset.
It said that while the Debt Collection Act created a ten-year statute of limitations, the 1991 Higher Education Assistance Act eradicated that time limit, and a 1996 amendment to the Debt Collection Act specifically allowed for the offset of Social Security benefits.
In a unanimous decision, the U.S. Supreme Court agreed.
Student Loan Survival Guide
Drowning in student loans?
Save yourself from debt using our simple step-by-step plan.
Philip Jones wanted nothing more than to marry his fiancee, fly away to Costa Rica, and embark on the rest of his life. But something was holding him back--the $40,000 in student loans he owes to Direct Loans and Sallie Mae.
Jones, 30, was stressed out because he knew that if he fell .
behind on his loan payments, the U.S. Department of Education could provide offsets against Social Security payments and garnish his wages and tax refunds, without a court order. Until recently, only the Internal Revenue Service wielded such power.
Luckily, the 2004 graduate of Rutgers University College of Engineering knew a little something about forbearance, a temporary suspension of loan payments that most lenders will allow when times are tough. For Jones, his wallet was being pulled in too many directions; he was trying to pay for a house, a wedding, and a honeymoon within a six-month period.
"I didn't have to make a payment for six months, so that money went toward the wedding and honeymoon. It's easing the financial stress," says the mechanical engineer, who works for Hayes Pump Inc., an industrial equipment distributor in Fairfield, New Jersey.
For the class of 2002, the most current information available, the median student debt was $16,500, according to Sallie Mae, the nation's leading provider of education funding. And with the average college debt burden increasing, many recent grads are finding it hard to manage when the bills are due.
While Jones opted for forbearance, there are plenty of other ways to stay on track with student loan payments without breaking the bank. Erin Korsvall, spokeswoman for Sallie Mae, offers a few tips for taking the pain out of repayment.
Save yourself from debt using our simple step-by-step plan.
Philip Jones wanted nothing more than to marry his fiancee, fly away to Costa Rica, and embark on the rest of his life. But something was holding him back--the $40,000 in student loans he owes to Direct Loans and Sallie Mae.
Jones, 30, was stressed out because he knew that if he fell .
behind on his loan payments, the U.S. Department of Education could provide offsets against Social Security payments and garnish his wages and tax refunds, without a court order. Until recently, only the Internal Revenue Service wielded such power.
Luckily, the 2004 graduate of Rutgers University College of Engineering knew a little something about forbearance, a temporary suspension of loan payments that most lenders will allow when times are tough. For Jones, his wallet was being pulled in too many directions; he was trying to pay for a house, a wedding, and a honeymoon within a six-month period.
"I didn't have to make a payment for six months, so that money went toward the wedding and honeymoon. It's easing the financial stress," says the mechanical engineer, who works for Hayes Pump Inc., an industrial equipment distributor in Fairfield, New Jersey.
For the class of 2002, the most current information available, the median student debt was $16,500, according to Sallie Mae, the nation's leading provider of education funding. And with the average college debt burden increasing, many recent grads are finding it hard to manage when the bills are due.
While Jones opted for forbearance, there are plenty of other ways to stay on track with student loan payments without breaking the bank. Erin Korsvall, spokeswoman for Sallie Mae, offers a few tips for taking the pain out of repayment.
Student-loan market adjusts to rising interest rates
Student-loan rates will jump July 1. The meaning of that for borrowers is clear: Consolidate your loans now, or go to financial detention for the next few years.
Lenders also are affected by the rate increases.
The Pennsylvania Higher Education Assistance Agency has hired 300 new staff members in its Harrisburg offices in the last 12 months, mostly to handle consolidation business that has boomed as interest rates move up, said spokesman Keith New.
"It was top of mind for ever), body," New said.
When they consolidate, borrowers bundle multiple loans into one at a fixed interest rate. A single loan can also be consolidated for die interest-rate benefit.
The impending interest-rate increase comes in two main parts.
Student loans issued before July 1 have variable interest rates that adjust annually. Those will jump to reflect the general rise in shortterm interest rates over the last year. By consolidating these loans by June 30, borrowers can lock in this year's interest rates for good.
Lenders also are affected by the rate increases.
The Pennsylvania Higher Education Assistance Agency has hired 300 new staff members in its Harrisburg offices in the last 12 months, mostly to handle consolidation business that has boomed as interest rates move up, said spokesman Keith New.
"It was top of mind for ever), body," New said.
When they consolidate, borrowers bundle multiple loans into one at a fixed interest rate. A single loan can also be consolidated for die interest-rate benefit.
The impending interest-rate increase comes in two main parts.
Student loans issued before July 1 have variable interest rates that adjust annually. Those will jump to reflect the general rise in shortterm interest rates over the last year. By consolidating these loans by June 30, borrowers can lock in this year's interest rates for good.
Can I Get My Debt Forgiven?
Sometimes you can take out a student loan and not have to pay back any of it. This sounds too good to be true and that is probably because it is. Yo have to do some work but not the traditional kind. You borrowed money form the government so they want something from the deal too, you would be the same, right? There are lots of kinds of jobs that you can do to pay back your student debt without physically paying back the money.
Peace Corps
- The Peace Corps is a civilian organization that is sponsored by the United States government that helps developing countries who are less fortunate than we are. You can sign up to help this cause and because you are helping them they will cut some of your student debt away. I think it is a great experience to do this because you get to humble yourself and work for someone else which can teach you great lessons when you are young.
Exceptional Circumstances
- If you are under some exceptional circumstances the you may be forgiven your student loan, probably all of it. These really do have to be extreme though like becoming disabled or having to file for bankruptcy. You may find that some organizations will reduce your payments for a while if you are struggling financially. Make sure you talk to them constantly because lots of people avoid talking to their bank because they are scared but you need to sort something out or they will just file for a meeting in court. I speak from experience there.
Peace Corps
- The Peace Corps is a civilian organization that is sponsored by the United States government that helps developing countries who are less fortunate than we are. You can sign up to help this cause and because you are helping them they will cut some of your student debt away. I think it is a great experience to do this because you get to humble yourself and work for someone else which can teach you great lessons when you are young.
Exceptional Circumstances
- If you are under some exceptional circumstances the you may be forgiven your student loan, probably all of it. These really do have to be extreme though like becoming disabled or having to file for bankruptcy. You may find that some organizations will reduce your payments for a while if you are struggling financially. Make sure you talk to them constantly because lots of people avoid talking to their bank because they are scared but you need to sort something out or they will just file for a meeting in court. I speak from experience there.
What are the top ten tips to avoid being scammed by student loan consolidation lenders?
If you want to avoid being scammed by student loan consolidation lenders, it is advisable to know your turf.
Follow the below mentioned top ten tips to avoid scams by student loan consolidation lenders.
Follow the below mentioned top ten tips to avoid scams by student loan consolidation lenders.
First and foremost, check the reputation of student loan consolidation lender. Most of the lenders have their own websites so you can go there and check the profile of the lender. If the lender does not have any website, it clearly means that lender is not reputed in nature- .Only go for a student loan consolidation lender who has an experience of more than 10 years in dealing with student loan consolidation program. There is no point opting for a lender who has just entered into the field of student loan consolidation.
- Most of the time, lenders will advertise lucrative student loan consolidation deals in the newspapers and television. If the deal does not sound practical, stay away from it because there is a good chance that it is a scam.
- If the lender is charging you upfront fee for student loan consolidation, it is recommended that you stay away from them. This is because of the simple reason that reputed lenders do not charge any kind of fee in their student loan consolidation program.
- Customer services are also quite an important factor in student loan consolidation program. If the lender is not giving you good enough services, there is a strong possibility that they are a scam.
- Go to the office of student loan consolidation lender before availing their student loan consolidation program. This will give you a feel of how they operate and what kind of staff they possess.
- If the lender is promising you huge discounts in terms of interest rates, it means that they are scam because they only get a limited amount of income from you and if they give huge discounts in interest rates, what they are going to earn.
- Take the help of your financial adviser before signing an agreement.
If the lender is not giving you a grace period in initial stages, it means that something is wrong with them. - Check the profile of lender with national lender association.
Top 10 student loan consolidation tips
Below You Will Find Top 10 Student Loan Consolidation Tips
The rates of student loan consolidation program vary from one lender to another. Therefore, if you are interested in getting best rates shopping around is the key.
By paying your monthly installments of student loan consolidation program on time, you can not only improve your credit score but also lender can give you discount on interest rates thinking that you are not a risk to him.
Instead of going for a variable interest rate plan, it is advisable that you choose fixed interest rate plan. The main advantage of fixed interest rate plan is that you will know well in advance what monthly payment you need to pay to the lender.
Only opt for a student loan consolidation program whose monthly payment schedule is not that high. There is no point going for a student loan consolidation program that you cannot afford.
Give first preference to federal student loan consolidation program. This is because of the simple reason that interest rates in these programs are quite low as compared to the private student loan consolidation program.
Read the terms and conditions of the loan agreement carefully before signing it.
There are some lenders operating in the market that charges processing fee when offering student loan consolidation program. If the lender you have chosen is also asking the same, it is better to look out for another lender.
If you are not able to find a consolidation program of your choice, you can take the assistance of online lenders. The best part about them is that their application procedure is quite easy.
Most of the time, you do not need to submit any documents when availing student loan consolidation program. But if your lender is asking for your driving license, passport or a salary slip, you should submit otherwise he could reject your loan application.
Check the reputation of your lender first before signing any agreement with them. If the lender you have opted for has a limited experience in dealing with student loan consolidation program, it is advisable that you go for another lender.
The rates of student loan consolidation program vary from one lender to another. Therefore, if you are interested in getting best rates shopping around is the key.
By paying your monthly installments of student loan consolidation program on time, you can not only improve your credit score but also lender can give you discount on interest rates thinking that you are not a risk to him.
Instead of going for a variable interest rate plan, it is advisable that you choose fixed interest rate plan. The main advantage of fixed interest rate plan is that you will know well in advance what monthly payment you need to pay to the lender.
Only opt for a student loan consolidation program whose monthly payment schedule is not that high. There is no point going for a student loan consolidation program that you cannot afford.
Give first preference to federal student loan consolidation program. This is because of the simple reason that interest rates in these programs are quite low as compared to the private student loan consolidation program.
Read the terms and conditions of the loan agreement carefully before signing it.
There are some lenders operating in the market that charges processing fee when offering student loan consolidation program. If the lender you have chosen is also asking the same, it is better to look out for another lender.
If you are not able to find a consolidation program of your choice, you can take the assistance of online lenders. The best part about them is that their application procedure is quite easy.
Most of the time, you do not need to submit any documents when availing student loan consolidation program. But if your lender is asking for your driving license, passport or a salary slip, you should submit otherwise he could reject your loan application.
Check the reputation of your lender first before signing any agreement with them. If the lender you have opted for has a limited experience in dealing with student loan consolidation program, it is advisable that you go for another lender.
How can you resolve a student loan debt consolidation?
Student loan debt consolidation can help you immensely in repaying your student loans.
Why Student Loan Debt Consolidation Works
Lots of students find it real tough paying their student loans. Because of this, not only their personal life gets affected but also their studies. If you are one of those students, there is good news for you.
Student loan debt consolidation works because there are loads of creditors who are interested in modifying the repayment agreement. In some cases, they also lower the interest rate on the installments. To get all these benefits you have to hire a student loan debt consolidation company first. It’s the responsibility of these companies to meet with your creditors and talk to them regarding interest rates and repayment schedule.
Before appointing any such company, check their credential first. It has been noticed that loan settlement normally varies from company to company therefore it is quite important that you know before hand what kind of relationship they have with your creditors. Most of the reputed student loan debt consolidation companies offer you detailed counseling after looking at your financial condition.
You should take decision, which is going to help you in the long run. There is no point taking decision just to attain some short-term goals. For example, some students go for a bankruptcy filing instead of going for a debt consolidation. This is a wrong way of thinking because when you file for bankruptcy, creditors are not going to approve your loan application in the future.
The best part about student loan debt consolidation is that it often leads to lower monthly payments. Even better, you only have to deal with one creditor instead of five or six. In some cases, creditors also reduce interest rates on the loan but this will only happen when you pay monthly installments on time. If you miss any of your payment, creditors are not going to give you any discount in terms of interest rates. Therefore, it is quite important that you pay all your dues on time. By following this route, your credit score is also going to improve.
Why Student Loan Debt Consolidation Works
Lots of students find it real tough paying their student loans. Because of this, not only their personal life gets affected but also their studies. If you are one of those students, there is good news for you.
Student loan debt consolidation works because there are loads of creditors who are interested in modifying the repayment agreement. In some cases, they also lower the interest rate on the installments. To get all these benefits you have to hire a student loan debt consolidation company first. It’s the responsibility of these companies to meet with your creditors and talk to them regarding interest rates and repayment schedule.
Before appointing any such company, check their credential first. It has been noticed that loan settlement normally varies from company to company therefore it is quite important that you know before hand what kind of relationship they have with your creditors. Most of the reputed student loan debt consolidation companies offer you detailed counseling after looking at your financial condition.
You should take decision, which is going to help you in the long run. There is no point taking decision just to attain some short-term goals. For example, some students go for a bankruptcy filing instead of going for a debt consolidation. This is a wrong way of thinking because when you file for bankruptcy, creditors are not going to approve your loan application in the future.
The best part about student loan debt consolidation is that it often leads to lower monthly payments. Even better, you only have to deal with one creditor instead of five or six. In some cases, creditors also reduce interest rates on the loan but this will only happen when you pay monthly installments on time. If you miss any of your payment, creditors are not going to give you any discount in terms of interest rates. Therefore, it is quite important that you pay all your dues on time. By following this route, your credit score is also going to improve.
What can student loan consolidation services offer to students with bad credit?
The answer of this question is quite simple. To start with, student loan consolidation services ensure that students with bad credit get a loan.
Student Loan Consolidation Services and Students with Bad Credit:
It is worth mentioning in this regard that loan application of students with bad credit often gets rejected by the lender because of bad credit. Most of the lenders think of students with bad credit as a risk. Therefore, they are not willing to give them the loan.
Another good thing about student loan consolidation services is that they makes sure that students with bad credit get a loan at low interest rates and easy repayment schedule. This is important because if the interest rates are high, credit record of these students can get even worse. Repayment schedule is also quite an important factor for students with bad credit, as they don’t want to pay huge monthly installments.
Student loan consolidation services normally analyze the financial condition of the student first. On the basis of their analysis, they tell students which consolidation program can be advantageous for them. Only opt for that consolidation program, which you can afford. If you choose consolidation program that you cannot afford, not only your credit score will suffer but also you will face plenty of difficulty in paying the monthly installments.
Finding a reputed lender is also quite critical when availing student loan consolidation program. Student loan consolidation services play a prominent part in helping out students find a lender that is willing to give loan on easy terms and conditions. In addition, they also make sure that students understand the terms and conditions of the loan before signing it.
Students with bad credit often go for bankruptcy filing instead of consolidation. This is a wrong way of thinking because when students go for bankruptcy filing they cannot apply for loan application in the future. On the other hand, when they go for consolidation not only they can get approval for the loan but also they can easily improve their credit situation, which in turn would mean lower interest rates in the loan consolidation program.
Student Loan Consolidation Services and Students with Bad Credit:
It is worth mentioning in this regard that loan application of students with bad credit often gets rejected by the lender because of bad credit. Most of the lenders think of students with bad credit as a risk. Therefore, they are not willing to give them the loan.
Another good thing about student loan consolidation services is that they makes sure that students with bad credit get a loan at low interest rates and easy repayment schedule. This is important because if the interest rates are high, credit record of these students can get even worse. Repayment schedule is also quite an important factor for students with bad credit, as they don’t want to pay huge monthly installments.
Student loan consolidation services normally analyze the financial condition of the student first. On the basis of their analysis, they tell students which consolidation program can be advantageous for them. Only opt for that consolidation program, which you can afford. If you choose consolidation program that you cannot afford, not only your credit score will suffer but also you will face plenty of difficulty in paying the monthly installments.
Finding a reputed lender is also quite critical when availing student loan consolidation program. Student loan consolidation services play a prominent part in helping out students find a lender that is willing to give loan on easy terms and conditions. In addition, they also make sure that students understand the terms and conditions of the loan before signing it.
Students with bad credit often go for bankruptcy filing instead of consolidation. This is a wrong way of thinking because when students go for bankruptcy filing they cannot apply for loan application in the future. On the other hand, when they go for consolidation not only they can get approval for the loan but also they can easily improve their credit situation, which in turn would mean lower interest rates in the loan consolidation program.
Student Loans can help Students Control their Monthly Payments
With the help of student loan consolidation loans, you can easily pay off all your student loans that you taken in the past.
How students benefit from student loan consolidation loans :
When students go for these kinds of loans, monthly payments get reduced. This is because of the simple reason that interest rates gets reduced and they only have to deal with one lender. With only one monthly payment to make, students can easily manage their finances.
But all this will only happen when you manage to find a student loan consolidation at low interest rates and easy repayment schedule. Before you start the process of finding a student loan consolidation, it is of paramount importance that you analyze your financial condition first.
Basically there are two types of student loan consolidation loans, namely, private student loan consolidation and federal student loan consolidation. If your financial condition is really bad, it is advisable that you go for a federal student loan consolidation because interest rates in this consolidation program is much lower as compared to the private student loan consolidation.
On the other hand, if you have just joined a new job and there is a chance of promotion in the six months time, you should go for a private student loan consolidation. The best part about this consolidation is that it gives you a grace period of six months if your financial condition is not up to the mark. During this grace period, you do not have to worry about giving monthly payment to the lender.
If your main objective is to reduce your monthly payments, it is advisable that you go for a fixed rate student consolidation loan. When you do that, you only have to pay a fixed monthly payment, which is not the case when you have selected variable rate student consolidation loan.
Your monthly payment can reduce appreciably if you manage to improve your credit rating. To improve your credit rating, pay your monthly payment on time and save some money in your bank account. In some cases, lenders will give you discount on interest rates by taking a look at your bank statement.
Student Loan Consolidation Review
Below is a student loan consolidation review. When your main objective is to lower your monthly payment and combine all your student loans into one loan then student loan consolidation is the way to go.
There are two types of student loan consolidation programs:
Federal student loan consolidation program
Private student loan consolidation program.
There are some differences between federal student loan consolidation program and private student loan consolidation program. Take a look.
There is a 6 per cent discount during grace period in federal student loan consolidation program, which is not the case in private student loan consolidation program.
You can go for a fixed interest rate in federal student loan consolidation program whereas in private student loan consolidation program you only have a choice of variable interest rate.
Some of the benefits of student loan consolidation are mentioned below:
In an ideal scenario, student loan consolidation program minimizes your present monthly payment in half.
You do not need to pay any sort of fee when availing these consolidation programs.
There is no prepayment penalty associated with these programs. In case if you are interested in repaying the loan amount much before the deadline, you can do it without being charged with any penalty.
When you opt for student loan consolidation program, your credit rating improves. But for that to happen, it is of utmost importance that you pay all your dues on time.
You only need to deal with one lender instead of five or six lenders with student loan consolidation program. This not only gives you peace of mind but also makes your task of managing finances lot easier.
If your financial condition is not up to the mark at present, you can request for a grace period. More often, you will be given a grace period of around six months. In this period, you do not have to give any payment to the lender.
Your monthly payments are designed after taking a look at your financial condition. This in turn makes sure that you will not face any problem in repaying the loan amount.
There are two types of student loan consolidation programs:
Federal student loan consolidation program
Private student loan consolidation program.
There are some differences between federal student loan consolidation program and private student loan consolidation program. Take a look.
There is a 6 per cent discount during grace period in federal student loan consolidation program, which is not the case in private student loan consolidation program.
You can go for a fixed interest rate in federal student loan consolidation program whereas in private student loan consolidation program you only have a choice of variable interest rate.
Some of the benefits of student loan consolidation are mentioned below:
In an ideal scenario, student loan consolidation program minimizes your present monthly payment in half.
You do not need to pay any sort of fee when availing these consolidation programs.
There is no prepayment penalty associated with these programs. In case if you are interested in repaying the loan amount much before the deadline, you can do it without being charged with any penalty.
When you opt for student loan consolidation program, your credit rating improves. But for that to happen, it is of utmost importance that you pay all your dues on time.
You only need to deal with one lender instead of five or six lenders with student loan consolidation program. This not only gives you peace of mind but also makes your task of managing finances lot easier.
If your financial condition is not up to the mark at present, you can request for a grace period. More often, you will be given a grace period of around six months. In this period, you do not have to give any payment to the lender.
Your monthly payments are designed after taking a look at your financial condition. This in turn makes sure that you will not face any problem in repaying the loan amount.
Top 5 student loan consolidation scams
No doubt, student loan consolidation programs is quite a useful tool for students in terms of repaying the student loans but if you are not careful it can cost you dearly.
Below you will find top 5 student loan consolidation scams.
Lots of students who are facing problem in repaying their loan commit the mistake of doing business with lenders that steal money from them instead of helping them out. It has been noticed that these kinds of scams are normally directed at students who are suffering from bad credit. Those students who are filing for bankruptcy is more at risk for these scams. It is advisable that you check the profile of the lender first before working with them.
Most of the time, lenders ask for money up front when offering student loan consolidation programs to the students. Do not opt for such lenders because their only aim is to get the money out from you at any cost. It is worth mentioning in this regard that there is no up front or processing fee associated with student loan consolidation programs.
Some lenders give advertisement in the newspaper and magazine that they are going to give loan at 1 per cent interest rate. Beware of these kinds of lenders because in reality no lender is going to give you loan at 1 per cent interest rate. Once you see these kinds of advertisements, just treat them as scams.
Read the terms and conditions part of your loan carefully before signing it because number of times lenders take the advantage of the fact that students has a limited knowledge about the loan consolidation program. For example, lenders can increase the interest rates or monthly payment without letting you know.
In some cases, lenders gives you variable interest rate instead of fixed interest rate thinking that when interest rate will increase they can get the extra money. Therefore, it is quite pivotal that you tell lender well in advance that you are only interested in fixed interest rate program not variable interest rate program.
Below you will find top 5 student loan consolidation scams.
Lots of students who are facing problem in repaying their loan commit the mistake of doing business with lenders that steal money from them instead of helping them out. It has been noticed that these kinds of scams are normally directed at students who are suffering from bad credit. Those students who are filing for bankruptcy is more at risk for these scams. It is advisable that you check the profile of the lender first before working with them.
Most of the time, lenders ask for money up front when offering student loan consolidation programs to the students. Do not opt for such lenders because their only aim is to get the money out from you at any cost. It is worth mentioning in this regard that there is no up front or processing fee associated with student loan consolidation programs.
Some lenders give advertisement in the newspaper and magazine that they are going to give loan at 1 per cent interest rate. Beware of these kinds of lenders because in reality no lender is going to give you loan at 1 per cent interest rate. Once you see these kinds of advertisements, just treat them as scams.
Read the terms and conditions part of your loan carefully before signing it because number of times lenders take the advantage of the fact that students has a limited knowledge about the loan consolidation program. For example, lenders can increase the interest rates or monthly payment without letting you know.
In some cases, lenders gives you variable interest rate instead of fixed interest rate thinking that when interest rate will increase they can get the extra money. Therefore, it is quite pivotal that you tell lender well in advance that you are only interested in fixed interest rate program not variable interest rate program.
How Much Effort Should Go into Consolidation Application?
Thanks to the advent of Internet, you don’t need to do much in terms of student loan consolidation application.
Steps to take when Filling a Student Loan Consolidation Application
1. There are plenty of online lenders operating in the market that offers student loan consolidation. You just need to go to their website and fill an online application form, which includes your name, your father’s name, permanent address and some details about your monthly income.
2. Once you give these details to the lender, he will then cross check the information given by you. If the information provided by you is correct, there is a good chance that your loan consolidation application will get an approval in a matter of two or three days. The best part about online lenders is that you can do all this at the comfort of your home. Apart from that, no credit check is going to be implemented on you.
3. Some people believe that online lenders charges hefty amount of fee in their student loan consolidation program. This is baseless because in reality they just charge processing fee, which is also quite minimal.
4. Before you fill student loan consolidation application, it is of paramount importance that you check the reputation of the lender first. This will go a long way in making sure that you get the student loan consolidation at a low interest rate and easy repayment schedule.
5. Shopping around is the key when your main objective is to find a lender who is willing to give you loan on a low interest rate. When you take quotes from five or six lenders you get a rough idea of what the market condition is at this moment of time. This in turn helps you in making an informed decision.
6. When filling up the student loan consolidation application it is quite important that you fill the application form correctly. Any mistake in this regard will delay the whole process. In addition, it will also create a wrong impression on the mind of a lender. In an ideal scenario, you should read the application form carefully before filling it.
Steps to take when Filling a Student Loan Consolidation Application
1. There are plenty of online lenders operating in the market that offers student loan consolidation. You just need to go to their website and fill an online application form, which includes your name, your father’s name, permanent address and some details about your monthly income.
2. Once you give these details to the lender, he will then cross check the information given by you. If the information provided by you is correct, there is a good chance that your loan consolidation application will get an approval in a matter of two or three days. The best part about online lenders is that you can do all this at the comfort of your home. Apart from that, no credit check is going to be implemented on you.
3. Some people believe that online lenders charges hefty amount of fee in their student loan consolidation program. This is baseless because in reality they just charge processing fee, which is also quite minimal.
4. Before you fill student loan consolidation application, it is of paramount importance that you check the reputation of the lender first. This will go a long way in making sure that you get the student loan consolidation at a low interest rate and easy repayment schedule.
5. Shopping around is the key when your main objective is to find a lender who is willing to give you loan on a low interest rate. When you take quotes from five or six lenders you get a rough idea of what the market condition is at this moment of time. This in turn helps you in making an informed decision.
6. When filling up the student loan consolidation application it is quite important that you fill the application form correctly. Any mistake in this regard will delay the whole process. In addition, it will also create a wrong impression on the mind of a lender. In an ideal scenario, you should read the application form carefully before filling it.
What is the Best Advice that can be Offered?
With the help of student loan consolidation, not only you can lower your monthly installments but also you can increase your repayment term. The federal government normally backs student loan consolidation. When opting for consolidation program, it is quite mandatory that you take a closer look at the terms and conditions of the loan.
Student Loan Consolidation Advice:
If you are not happy with the terms and conditions of the loan, it is always better to negotiate it with the financial institution. In case if financial institution is not willing to modify terms and conditions, you always have a choice of selecting another financial institution, as there are thousands of financial institutions operating in the market.
You will only be able to avail the benefits of student loan consolidation when the interest rates are quite low. There is no point going for a student loan consolidation program whose rate of interest is quite high. If you are interested in getting a loan at low interest rate, you have to shop around and take quotes from number of financial institutions. When you take quotes from financial institutions, you will realize what the standard interest rate prevailing in the market at present.
There are some financial institutions in the market that offers discount to students opting for consolidation program. But finding these institutions is not that easy because they are very few in numbers. On the other hand, there are lots of financial institutions that charge huge upfront fee when giving loans.
This is ridiculous because students normally choose student loan consolidation, as their financial condition is not up to the mark. But when they have to pay huge sum of money as an upfront fee, what benefit they are going to get through consolidation. Taking this into account, it is quite critical that you work hard and come up with a financial institution, which is willing to give you loan on a low interest rate and most importantly not charging any sort of fee. Also take into consideration the repayment schedule before signing an agreement.
Student Loan Consolidation Advice:
If you are not happy with the terms and conditions of the loan, it is always better to negotiate it with the financial institution. In case if financial institution is not willing to modify terms and conditions, you always have a choice of selecting another financial institution, as there are thousands of financial institutions operating in the market.
You will only be able to avail the benefits of student loan consolidation when the interest rates are quite low. There is no point going for a student loan consolidation program whose rate of interest is quite high. If you are interested in getting a loan at low interest rate, you have to shop around and take quotes from number of financial institutions. When you take quotes from financial institutions, you will realize what the standard interest rate prevailing in the market at present.
There are some financial institutions in the market that offers discount to students opting for consolidation program. But finding these institutions is not that easy because they are very few in numbers. On the other hand, there are lots of financial institutions that charge huge upfront fee when giving loans.
This is ridiculous because students normally choose student loan consolidation, as their financial condition is not up to the mark. But when they have to pay huge sum of money as an upfront fee, what benefit they are going to get through consolidation. Taking this into account, it is quite critical that you work hard and come up with a financial institution, which is willing to give you loan on a low interest rate and most importantly not charging any sort of fee. Also take into consideration the repayment schedule before signing an agreement.
How Soon Can Student Loan Consolidation Repayment be Made ?
Students can start repaying their student loans whenever they want to. However, in some cases, lenders give students a grace period of around six months to start repaying the loan. This grace period is normally given to those students who have not been able to find a job.
When you go for a student loan consolidation, the lender on the basis of your financial condition sets repayment schedule. If you are not happy with the repayment schedule set by the lender, it is quite important that you ask your lender to modify repayment schedule. If he is not willing to modify repayment schedule, it is advisable that you opt for another lender.
The main advantage of student loan consolidation is that you only need to make one monthly payment. Some students commit a mistake of repaying the loan slowly. If your financial condition is quite good, make sure that you repay the loan fast. By following this route, you can save plenty of money in the form of interest rates.
On the other hand, if your financial condition is not that good make sure you repay the loan amount slowly. If you show desperation in repaying the loan amount just because of saving some money, you can face lots of difficulties in the future. For example, if you miss one or two of your monthly payments, your credit score is going to get worse. Furthermore, lenders will not approve your loan application in the future thinking that you are a risk to them.
Before opting for any student loan consolidation program, it is of utmost importance that you take into consideration the terms and conditions of the loan. There is a direct relation between student loan consolidation repayment and terms and conditions of the consolidation program. The terms and conditions of the consolidation program are flexible in nature, you will face no problem in repaying the loan amount. Conversely, if the terms and conditions of the loan are bit tight, you will face lots of difficulty in repaying the loan amount.
When you go for a student loan consolidation, the lender on the basis of your financial condition sets repayment schedule. If you are not happy with the repayment schedule set by the lender, it is quite important that you ask your lender to modify repayment schedule. If he is not willing to modify repayment schedule, it is advisable that you opt for another lender.
The main advantage of student loan consolidation is that you only need to make one monthly payment. Some students commit a mistake of repaying the loan slowly. If your financial condition is quite good, make sure that you repay the loan fast. By following this route, you can save plenty of money in the form of interest rates.
On the other hand, if your financial condition is not that good make sure you repay the loan amount slowly. If you show desperation in repaying the loan amount just because of saving some money, you can face lots of difficulties in the future. For example, if you miss one or two of your monthly payments, your credit score is going to get worse. Furthermore, lenders will not approve your loan application in the future thinking that you are a risk to them.
Before opting for any student loan consolidation program, it is of utmost importance that you take into consideration the terms and conditions of the loan. There is a direct relation between student loan consolidation repayment and terms and conditions of the consolidation program. The terms and conditions of the consolidation program are flexible in nature, you will face no problem in repaying the loan amount. Conversely, if the terms and conditions of the loan are bit tight, you will face lots of difficulty in repaying the loan amount.
Student Loan Consolidation Rebate is Most Common ?
Rebate is normally given in federal student loan consolidation program. The best part about this consolidation program is that you have a choice of extending your repayment term. By extending repayment term, you can easily improve your credit score.
The kind of rebate you are going to get in this consolidation program is set by the U.S. Department of Education. Therefore, you do not have to worry about any kind of partiality, as the terms and conditions are equal for all the students. This is not the case with private student loan consolidation where terms and conditions vary from one lender to another.
If you are interested in getting a private student loan consolidation program, shopping around is the key. Make sure that you take quote from at least five or ten lenders. Checking the reputation of the lender is also quite important in private student loan consolidation, as there are thousands of private lenders operating in the market.
The best way to do this is in the form of reduction in interest rates. This benefit is normally offered to students in two parts. First and foremost, a .25 per cent reduction for auto debit and secondly a 1 per cent interest rate reduction after three years of on-time payments. In other words, it is of paramount importance that you pay all your dues on time because then only you will be able to get concession in interest rates.
In case if you are struggling in financial front, it is advisable that you go for a grace period. When you opt for a grace period, you do not need to pay any money to the lender. Your repayment term will start once again when your grace period is over. Point to be noted here is that no financial penalty is going to impose on you during the grace period.
You will get more benefits in your student loan consolidation program when your credit situation is up to the mark. Therefore, it is recommended that you improve your credit situation first before going for a student loan consolidation rebate.
The kind of rebate you are going to get in this consolidation program is set by the U.S. Department of Education. Therefore, you do not have to worry about any kind of partiality, as the terms and conditions are equal for all the students. This is not the case with private student loan consolidation where terms and conditions vary from one lender to another.
If you are interested in getting a private student loan consolidation program, shopping around is the key. Make sure that you take quote from at least five or ten lenders. Checking the reputation of the lender is also quite important in private student loan consolidation, as there are thousands of private lenders operating in the market.
The best way to do this is in the form of reduction in interest rates. This benefit is normally offered to students in two parts. First and foremost, a .25 per cent reduction for auto debit and secondly a 1 per cent interest rate reduction after three years of on-time payments. In other words, it is of paramount importance that you pay all your dues on time because then only you will be able to get concession in interest rates.
In case if you are struggling in financial front, it is advisable that you go for a grace period. When you opt for a grace period, you do not need to pay any money to the lender. Your repayment term will start once again when your grace period is over. Point to be noted here is that no financial penalty is going to impose on you during the grace period.
You will get more benefits in your student loan consolidation program when your credit situation is up to the mark. Therefore, it is recommended that you improve your credit situation first before going for a student loan consolidation rebate.
Wednesday, May 20, 2009
Student loans may be discharged due to undue hardship, rules 9th Circuit
Sometimes you can take out a student loan and not have to pay back any of it. This sounds too good to be true and that is probably because it is. Yo have to do some work but not the traditional kind. You borrowed money form the government so they want something from the deal too, you would be the same, right? There are lots of kinds of jobs that you can do to pay back your student debt without physically paying back the money.Peace Corps - The Peace Corps is a civilian organization that is sponsored by the United States government that helps developing countries who are less fortunate than we are. You can sign up to help this cause and because you are helping them they will cut some of your student debt away. I think it is a great experience to do this because you get to humble yourself and work for someone else which can teach you great lessons when you are young.Exceptional Circumstances - If you are under some exceptional circumstances the you may be forgiven your student loan, probably all of it. These really do have to be extreme though like becoming disabled or having to file for bankruptcy. You may find that some organizations will reduce your payments for a while if you are struggling financially. Make sure you talk to them constantly because lots of people avoid talking to their bank because they are scared but you need to sort something out or they will just file for a meeting in court. I speak from experience there.To learn how to get a job with the Government and get the great feeling of freedom that comes with paying off your student loan.
Tuesday, May 19, 2009
student loan consolidation rebate
Sometimes you can take out a student loan and not have to pay back any of it. This sounds too good to be true and that is probably because it is. Yo have to do some work but not the traditional kind. You borrowed money form the government so they want something from the deal too, you would be the same, right? There are lots of kinds of jobs that you can do to pay back your student debt without physically paying back the money.
Peace Corps - The Peace Corps is a civilian organization that is sponsored by the United States government that helps developing countries who are less fortunate than we are. You can sign up to help this cause and because you are helping them they will cut some of your student debt away. I think it is a great experience to do this because you get to humble yourself and work for someone else which can teach you great lessons when you are young.
Exceptional Circumstances - If you are under some exceptional circumstances the you may be forgiven your student loan, probably all of it. These really do have to be extreme though like becoming disabled or having to file for bankruptcy. You may find that some organizations will reduce your payments for a while if you are struggling financially. Make sure you talk to them constantly because lots of people avoid talking to their bank because they are scared but you need to sort something out or they will just file for a meeting in court. I speak from experience there.
To learn how to get a job with the Government and get the great feeling of freedom that comes with paying off your student loan.
Peace Corps - The Peace Corps is a civilian organization that is sponsored by the United States government that helps developing countries who are less fortunate than we are. You can sign up to help this cause and because you are helping them they will cut some of your student debt away. I think it is a great experience to do this because you get to humble yourself and work for someone else which can teach you great lessons when you are young.
Exceptional Circumstances - If you are under some exceptional circumstances the you may be forgiven your student loan, probably all of it. These really do have to be extreme though like becoming disabled or having to file for bankruptcy. You may find that some organizations will reduce your payments for a while if you are struggling financially. Make sure you talk to them constantly because lots of people avoid talking to their bank because they are scared but you need to sort something out or they will just file for a meeting in court. I speak from experience there.
To learn how to get a job with the Government and get the great feeling of freedom that comes with paying off your student loan.
Student Loans May Be Discharges Due To Undue Hardship
Student loans may be discharged due to undue hardship, rules 9th Circuit
An unemployed debtor may obtain an undue hardship determination substantially in advance of the time she completes payments under her Chapter 13 bankruptcy plan, the 9th Circuit has ruled. The debtor had been making payments on her $100,000 in student loans since 1999.
She filed for bankruptcy
in 2004 and the court confirmed a five-year repayment plan. But after losing her job in early 2005, she petitioned to have the repayment of her student loan debts declared an undue hardship under 11 U.S.C. [section]523(a)(8) and have her loans discharged.
The creditor asserted the issue of undue hardship wasn't ripe because Chapter 13 provides that no determination of dischargeability can occur until a debtor completes payment under the plan already established.
The debtor argued that the issue was ripe at any time under the Rules of Bankruptcy Procedure, which permit the filing of a complaint to determine the dischargeability of any debt "at any time."
Student Loans Guide
Student loans guide.
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The Department and the Federal Trade
Commission (FTC) have published a consumer guide to help students and their families navigate the maze of offers they may face when seeking new student loans or consolidating existing loans to pay for higher education. The new guide, "Student Loans:The University of Wales Online MBA at Robert Kennedy College.
Effective results.Deceptive Offers," provides detailed information about the different benefits and terms of federal and private loans, as well as tips on recognizing questionable practices. The guide also includes several resources for information about student loans and filing a complaint against various types of lenders. "As we carry out our commitment to ensure the availability of federal student loans, we must also make sure that students and their families are armed with critical information to help them recognize and avoid deceptive lending practices," Secretary Spellings explained. "This brochure will help families be wise consumers of higher education and financial aid." For more information.
Meanwhile, today (July 18), the Secretary will address the 2008 Higher Education Summit, "A Test of Leadership: Committing to Advance Postsecondary Education for All Americans," in Chicago. She will challenge participants to build on the efforts of her Commission on the Future of Higher Education, as well as discuss global competitiveness and the workforce needs of the 21st century.
You are viewing page 1
The Department and the Federal Trade
Commission (FTC) have published a consumer guide to help students and their families navigate the maze of offers they may face when seeking new student loans or consolidating existing loans to pay for higher education. The new guide, "Student Loans:The University of Wales Online MBA at Robert Kennedy College.
Effective results.Deceptive Offers," provides detailed information about the different benefits and terms of federal and private loans, as well as tips on recognizing questionable practices. The guide also includes several resources for information about student loans and filing a complaint against various types of lenders. "As we carry out our commitment to ensure the availability of federal student loans, we must also make sure that students and their families are armed with critical information to help them recognize and avoid deceptive lending practices," Secretary Spellings explained. "This brochure will help families be wise consumers of higher education and financial aid." For more information.
Meanwhile, today (July 18), the Secretary will address the 2008 Higher Education Summit, "A Test of Leadership: Committing to Advance Postsecondary Education for All Americans," in Chicago. She will challenge participants to build on the efforts of her Commission on the Future of Higher Education, as well as discuss global competitiveness and the workforce needs of the 21st century.
Student Loans (Letters)
Student loans. (Letters).
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AS SOMEONE WHO FINANCED A SMALL portion of my undergraduate education and most of my graduate education, I appreciated the article "Managing Your Student Loan Debt" (April 2003). Many black students are investing in their education by taking out student loans. Unfortunately, because we are made
Ads by GoogleSwiss Online MBAThe University of Wales Online MBA at Robert Kennedy College, Zurichwales.college.chFinance Crisis ExplainedSix experts explore fixes cures and causes.http://googleads.g.doubleclick.net/aclk?sa=l&ai=BcfAnG-wSSsSdAqSUjQSY1sWWDZr6pVjOj6PrCcCNtwGAxBMQAhgCIM7jkQIoAzgAULmt1PL9_____wFgywSyARN3d3cuYWxsYnVzaW5lc3MuY29tyAEB2gFXaHR0cDovL3d3dy5hbGxidXNpbmVzcy5jb20vc3BlY2lhbHR5LWJ1c2luZXNzZXMvbWlub3JpdHktb3duZWQtYnVzaW5lc3Nlcy81ODE0MDktMS5odG1sgAIByALy_80EqAMB6AOtBugD9ALoAwfoAxP1AwAEAAQ&num=2&sig=AGiWqtzA35M9LOZEhcuruQKU2rR7vK2BjA&client=ca-pub-2905054723170537&adurl=http://www.america.gov/publications/ejournalusa/0509.htmlChina LED displayProfessional LED Display factory Lifetime Warranty, Prompt Delivery!http://googleads.g.doubleclick.net/aclk?sa=l&ai=BgpyHG-wSSsSdAqSUjQSY1sWWDd6HtYYBgpTV0A2q1a2cA6CnoQIQAxgDIM7jkQIoAzgAUJLJq5MGYMsEsgETd3d3LmFsbGJ1c2luZXNzLmNvbcgBAdoBV2h0dHA6Ly93d3cuYWxsYnVzaW5lc3MuY29tL3NwZWNpYWx0eS1idXNpbmVzc2VzL21pbm9yaXR5LW93bmVkLWJ1c2luZXNzZXMvNTgxNDA5LTEuaHRtbIACAakCr86B9FGqgz7AAgHIAuTq9wioAwHoA60G6AP0AugDB-gDE_UDAAQABA&num=3&sig=AGiWqtzLItgWMQuwmMc5omGtLKg10x1vyg&client=ca-pub-2905054723170537&adurl=http://www.elnor.cn/en/index.aspto feel ashamed of any kind of debt, we don't discuss the subject.
After reading your article, I feel good about my investment. I finished graduate school last May and, at age 24, I am making a decent living. It excites me to know that my future will only get brighter.
That said, we have to be smart about how we manage debt, and we need to do some preplanning and research before we incur it. With interest rates so low, I immediately consolidated my student loan debt. I shopped around for a consolidation company offering terms that were right for me, and I shared the information with my friends. I also took advantage of the automatic bank draft, which made me eligible for an immediate interest-rate decrease. I can honestly say that there is nothing about my decision that I regret.
Tiffany R. Washington
Winston-Salem, North Carolina
mswn02@hotmail.com
You are viewing page 1
AS SOMEONE WHO FINANCED A SMALL portion of my undergraduate education and most of my graduate education, I appreciated the article "Managing Your Student Loan Debt" (April 2003). Many black students are investing in their education by taking out student loans. Unfortunately, because we are made
Ads by GoogleSwiss Online MBAThe University of Wales Online MBA at Robert Kennedy College, Zurichwales.college.chFinance Crisis ExplainedSix experts explore fixes cures and causes.http://googleads.g.doubleclick.net/aclk?sa=l&ai=BcfAnG-wSSsSdAqSUjQSY1sWWDZr6pVjOj6PrCcCNtwGAxBMQAhgCIM7jkQIoAzgAULmt1PL9_____wFgywSyARN3d3cuYWxsYnVzaW5lc3MuY29tyAEB2gFXaHR0cDovL3d3dy5hbGxidXNpbmVzcy5jb20vc3BlY2lhbHR5LWJ1c2luZXNzZXMvbWlub3JpdHktb3duZWQtYnVzaW5lc3Nlcy81ODE0MDktMS5odG1sgAIByALy_80EqAMB6AOtBugD9ALoAwfoAxP1AwAEAAQ&num=2&sig=AGiWqtzA35M9LOZEhcuruQKU2rR7vK2BjA&client=ca-pub-2905054723170537&adurl=http://www.america.gov/publications/ejournalusa/0509.htmlChina LED displayProfessional LED Display factory Lifetime Warranty, Prompt Delivery!http://googleads.g.doubleclick.net/aclk?sa=l&ai=BgpyHG-wSSsSdAqSUjQSY1sWWDd6HtYYBgpTV0A2q1a2cA6CnoQIQAxgDIM7jkQIoAzgAUJLJq5MGYMsEsgETd3d3LmFsbGJ1c2luZXNzLmNvbcgBAdoBV2h0dHA6Ly93d3cuYWxsYnVzaW5lc3MuY29tL3NwZWNpYWx0eS1idXNpbmVzc2VzL21pbm9yaXR5LW93bmVkLWJ1c2luZXNzZXMvNTgxNDA5LTEuaHRtbIACAakCr86B9FGqgz7AAgHIAuTq9wioAwHoA60G6AP0AugDB-gDE_UDAAQABA&num=3&sig=AGiWqtzLItgWMQuwmMc5omGtLKg10x1vyg&client=ca-pub-2905054723170537&adurl=http://www.elnor.cn/en/index.aspto feel ashamed of any kind of debt, we don't discuss the subject.
After reading your article, I feel good about my investment. I finished graduate school last May and, at age 24, I am making a decent living. It excites me to know that my future will only get brighter.
That said, we have to be smart about how we manage debt, and we need to do some preplanning and research before we incur it. With interest rates so low, I immediately consolidated my student loan debt. I shopped around for a consolidation company offering terms that were right for me, and I shared the information with my friends. I also took advantage of the automatic bank draft, which made me eligible for an immediate interest-rate decrease. I can honestly say that there is nothing about my decision that I regret.
Tiffany R. Washington
Winston-Salem, North Carolina
mswn02@hotmail.com
Student Loans Keep Flowing
Student loans keep flowing
Despite some banks' decision to discontinue their student loan programs, federal student lending is rebounding due to aggressive government efforts and an influx of cash to fund private loans, according to experts.
"Federal loans are going along fine," said Cathy Malnichuck, director of financial .The University of Wales Online MBA at Robert Kennedy College, Zurichwales.college.chChina LED displayProfessional LED Display factory Lifetime Warranty, Prompt Delivery!CanadaImmigration program for Businessmen Professionals and Senior Managers.
"Some students had to change banks, because their banks went out of the business, but there are other banks taking up the slack."
A host of banks exited student lending last year including the College Loan Corp., TD Bank (formerly Commerce), M &T Bank and HSBC, creating concern among financial aid officers over a general exodus.
But Citibank, Chase, Sallie Mae, Nelnet and many others remain active in a market that has grown exponentially over the past decade.
Private student loans rose from $3 billion in 1997-1998 to $16.2 billion in 2006-2007, before dipping slightly to $16.1 billion in 2007-2008, according to the College Board. But that was far from the meltdown many feared.
In at least one recent sign of a rebound, Sallie Mae obtained $1.5 billion in financing from Goldman Sachs for private student loans.
"They're getting the money they need," Malnichuck said of students turning to federal and privately funded loans. "Is it costing them more to get that money in the private market? It probably is."
Frills on federal loans aren't as favorable as they once were, since banks no longer compete with discounts and perks based on payment options.
"Borrower benefits at this point have gone by the wayside," said Justin Draeger, vice president of planning for the National Association of Student Financial Aid Administrators in Washington, D.C.
Malnichuck said banks no longer pay for loan origination fees or sheer off 0.25 percent on interest in return for automated payments.
"They're not doing that anymore," Malnichuck said. "The loans have become more the same no matter who you're borrowing from and regardless of the borrower."
Interest rates on some loans, however, are actually dropping, making money cheaper. While subsidized Stafford loans issued through July 1, 2008 carry 6.8 percent interest, the rate falls to 6 percent for loans issued from that date through July 1, 2009. Rates continue to fall to as low as 3.4 percent for loans disbursed after July 1.
Draeger said the student lending market in 2008 looked like it could collapse when banks found they could no longer securitize and sell the loans.
"From our perspective, the cause for lenders dropping out of the program was they couldn't raise funds," Draeger said. "No bids were there to securitize their funds."
That brought the student loan market dangerously close to a meltdown as lenders, unable to securitize loans, were stuck in a stalemate.
"The market for that dried up," Malnichuck said. "Banks could not sell the securities that backed student loans."
But Draeger said Congress helped stabilize the market last May by passing the Ensuring Continued Access to Student Loans Act, which let lenders sell new loans to the Department of Education.
"I think it stopped a mass exodus of lenders, who had been leaving in droves," Draeger said. "We saw a stabilization."
Shortly after the bill's passage, Sallie Mae - the nation's largest student loan provider - said it would continue providing federal student loans. Malnichuck agreed the federal government's move to buy student loans bolstered lending, but noted, "Nobody jumped back into the business because of it."
The Department of Education in the next few months plans to purchase student loans dating back as far as 2003, which could lure other lenders to the sector.
"It'd be good news for lenders that didn't have enough cash up front to participate," Draeger said. "They might be able to re-enter."
And Gov. David Paterson in his state of the state speech said he would like New York to begin offering student loans, which could provide another cheap source of funds.
"States have a long history of providing student loans," Draeger said. "States can offer benefits that meet the unique needs of their students."
States sometimes target lending in professions with shortages, such as nursing or teaching. But New York's lending program, if it ramps up, could target students regardless of area of study.
"I think it would help," Malnichuck said. "I would like to see another government program that provides additional inexpensive funding to students."
Despite some banks' decision to discontinue their student loan programs, federal student lending is rebounding due to aggressive government efforts and an influx of cash to fund private loans, according to experts.
"Federal loans are going along fine," said Cathy Malnichuck, director of financial .The University of Wales Online MBA at Robert Kennedy College, Zurichwales.college.chChina LED displayProfessional LED Display factory Lifetime Warranty, Prompt Delivery!CanadaImmigration program for Businessmen Professionals and Senior Managers.
"Some students had to change banks, because their banks went out of the business, but there are other banks taking up the slack."
A host of banks exited student lending last year including the College Loan Corp., TD Bank (formerly Commerce), M &T Bank and HSBC, creating concern among financial aid officers over a general exodus.
But Citibank, Chase, Sallie Mae, Nelnet and many others remain active in a market that has grown exponentially over the past decade.
Private student loans rose from $3 billion in 1997-1998 to $16.2 billion in 2006-2007, before dipping slightly to $16.1 billion in 2007-2008, according to the College Board. But that was far from the meltdown many feared.
In at least one recent sign of a rebound, Sallie Mae obtained $1.5 billion in financing from Goldman Sachs for private student loans.
"They're getting the money they need," Malnichuck said of students turning to federal and privately funded loans. "Is it costing them more to get that money in the private market? It probably is."
Frills on federal loans aren't as favorable as they once were, since banks no longer compete with discounts and perks based on payment options.
"Borrower benefits at this point have gone by the wayside," said Justin Draeger, vice president of planning for the National Association of Student Financial Aid Administrators in Washington, D.C.
Malnichuck said banks no longer pay for loan origination fees or sheer off 0.25 percent on interest in return for automated payments.
"They're not doing that anymore," Malnichuck said. "The loans have become more the same no matter who you're borrowing from and regardless of the borrower."
Interest rates on some loans, however, are actually dropping, making money cheaper. While subsidized Stafford loans issued through July 1, 2008 carry 6.8 percent interest, the rate falls to 6 percent for loans issued from that date through July 1, 2009. Rates continue to fall to as low as 3.4 percent for loans disbursed after July 1.
Draeger said the student lending market in 2008 looked like it could collapse when banks found they could no longer securitize and sell the loans.
"From our perspective, the cause for lenders dropping out of the program was they couldn't raise funds," Draeger said. "No bids were there to securitize their funds."
That brought the student loan market dangerously close to a meltdown as lenders, unable to securitize loans, were stuck in a stalemate.
"The market for that dried up," Malnichuck said. "Banks could not sell the securities that backed student loans."
But Draeger said Congress helped stabilize the market last May by passing the Ensuring Continued Access to Student Loans Act, which let lenders sell new loans to the Department of Education.
"I think it stopped a mass exodus of lenders, who had been leaving in droves," Draeger said. "We saw a stabilization."
Shortly after the bill's passage, Sallie Mae - the nation's largest student loan provider - said it would continue providing federal student loans. Malnichuck agreed the federal government's move to buy student loans bolstered lending, but noted, "Nobody jumped back into the business because of it."
The Department of Education in the next few months plans to purchase student loans dating back as far as 2003, which could lure other lenders to the sector.
"It'd be good news for lenders that didn't have enough cash up front to participate," Draeger said. "They might be able to re-enter."
And Gov. David Paterson in his state of the state speech said he would like New York to begin offering student loans, which could provide another cheap source of funds.
"States have a long history of providing student loans," Draeger said. "States can offer benefits that meet the unique needs of their students."
States sometimes target lending in professions with shortages, such as nursing or teaching. But New York's lending program, if it ramps up, could target students regardless of area of study.
"I think it would help," Malnichuck said. "I would like to see another government program that provides additional inexpensive funding to students."
Federal Student Loan Consolidation
Federal Student Loan Consolidation
Federal Loan Consolidation offers students the facility to refinance their federal loans by combining all loans into one single liability thereby reducing the complexity in handling number of loans. Not only will this help students in simplifying their debt but also in reducing their monthly liability by more than half.
Consolidation Process :
Federal Loan Consolidation process is conducted as per the guidelines offered by the Federal Govt to the lenders under the Federal Family Education Program. The question of accountability now reduces to one lender and flexibility in repaying the loan enables the borrower to mange his personal finance as well.
Not just making it one consolidated loan liability also reducing the monthly payment is an excellent help one could offer. The reduction in liability is more than 50% in many cases. Lower monthly payment option does not stop you from repaying the loan early and no prepayment penalty is levied for early closure of loans.
Interest Rate:
Interest is another important aspect in loan consolidation. The interest rate for federal loan consolidation is arrived on the weighted average basis of the loans to be consolidated. The rates are generally fixed which ensures protection from change in market conditions. If you are about to complete your Graduation or have recently completed it would be the right time to apply for a loan consolidation as the interest rates are also low during this period.
The loans to be consolidated should not fall under defaulted or in-school status category in which case they will not be eligible for consolidation. The total loan consolidation amount should not be any way less than $25,000.
Repayment Options for Federal Loan Consolidation:
The time allowed for repayment generally does not exceed 30years and the repayment can either be made on an equated monthly installment basis or on a gradual increment basis. No credit check is required under the Federal Family Education Loan Consolidation Program.
Not just flexibility in repayment, you can even postpone your payment for a fixed period of time enabling you to manage you financial condition immediately after Graduation. You can avail 36 months of deferment and 36 months of forbearance.
Federal Loan Consolidation offers students the facility to refinance their federal loans by combining all loans into one single liability thereby reducing the complexity in handling number of loans. Not only will this help students in simplifying their debt but also in reducing their monthly liability by more than half.
Consolidation Process :
Federal Loan Consolidation process is conducted as per the guidelines offered by the Federal Govt to the lenders under the Federal Family Education Program. The question of accountability now reduces to one lender and flexibility in repaying the loan enables the borrower to mange his personal finance as well.
Not just making it one consolidated loan liability also reducing the monthly payment is an excellent help one could offer. The reduction in liability is more than 50% in many cases. Lower monthly payment option does not stop you from repaying the loan early and no prepayment penalty is levied for early closure of loans.
Interest Rate:
Interest is another important aspect in loan consolidation. The interest rate for federal loan consolidation is arrived on the weighted average basis of the loans to be consolidated. The rates are generally fixed which ensures protection from change in market conditions. If you are about to complete your Graduation or have recently completed it would be the right time to apply for a loan consolidation as the interest rates are also low during this period.
The loans to be consolidated should not fall under defaulted or in-school status category in which case they will not be eligible for consolidation. The total loan consolidation amount should not be any way less than $25,000.
Repayment Options for Federal Loan Consolidation:
The time allowed for repayment generally does not exceed 30years and the repayment can either be made on an equated monthly installment basis or on a gradual increment basis. No credit check is required under the Federal Family Education Loan Consolidation Program.
Not just flexibility in repayment, you can even postpone your payment for a fixed period of time enabling you to manage you financial condition immediately after Graduation. You can avail 36 months of deferment and 36 months of forbearance.
Student Consolidation Calculator
Student Consolidation Calculator
Disgusted with cumbersome procedures involved in loan consolidations and processing! The Student Consolidation Calculator comes, as a solution to all your consolidation needs. This tool is highly effective and precise in knowing your monthly loan repayment installments.
Federal and Private Loan Consolidation help you to reduce your loan burden and settle with a single amount a month and one lender to deal. While private loans have a fixed interest rate, as you must be aware of, the federal loans rates are varying and are set by the Govt every July.
In order to have the Monthly Loan Payment amount you need to enter the loan amount and the federal or private loan interest rate applicable in the particular year and get the desired result. This calculator enables you to know the consolidation and payment that will be available even before approaching the consolidator of loans. You should be particular about entering the base interest rate and not the rates after incentives as given by your lender.
The term of repayment and total loan liability and the Consolidation Rate helps in deriving the monthly liability after consolidation. These equated monthly installments enables you to decide upon your affordability of the consolidated loan and the lender regarding the competitive deal he could offer in helping the you repay the loan and maintain your credit worthiness and credit score. Apart from the above these calculators also allow reverse working. Given the monthly affordable amount the repayment term and interest rates are accordingly adjusted to suit your financial condition.
A number of websites on Student Loan and Consolidation offers this tool and an online query forum to answer all questions regarding consolidation. The tool not only helps in having a range of competitive rates to bargain, at the same reduces the effort by approaching the lender who offers the competitive rate and flexible repayment term suitable for you.
Student Loan FAQs
1. What is Student Loan?
The loan taken by students to meet the escalating cost of education is known as Student Loan.
2. Why do you need Student Loan?
Education is highly expensive in today’s world and to meet it on your own is very difficult. This is the reason why you need Student Loan.
3. For what purposes do you need Student Loan?
Student Loan are necessary not only to meet the exam fees, college fees had tuition fees but also to meet the cost of books, food, boarding and so on.
4. What are the types of Student Loan?
There are two types of Student Loan, depending on who is your lender- Federal Loan, given by the government, and Private Loan, given by the Private Lenders.
5. Which are more preferable? Why?
Federal Loan are much better than private loan because
They carry lower rates of interest,
They carry no interest during the period of schooling, and
There is an interest deferment for a period of 6 to 9 months after the period of schooling.
6. Can we do away with Private Loan?
Federal Loan are not sufficient to meet the entire cost of education for all. This is the reason why you need private loan. They are also known as Alternative Source of Financing.
7. Why do students find it tough to repay Student Loan?
The main reason why students find it tough to repay Student Loan is because
They accumulate too many loans in an immature way,
They find it hard to land on well paying jobs immediately,
They have too many loans with different lenders and find it tough to keep track of the same.
All these reasons force the students to default on their loan.
8. What is the remedy to repay Student Loan easily?
The best remedy that students can avail to avoid defaulting on their loan is Student Loan Consolidation.
9. What is Student Loan Consolidation?
Student Loan Consolidation is the process by which all educational loans with various lenders are combined into one loan under one lender with one rate of interest.
10. Can Private Student Loan be consolidated?
Yes, both Federal and Private Student Loan can be consolidated.
11. What are the types of Consolidation?
Depending on the type of lender, Consolidation is of two types:
Federal Consolidation provided by the government and
Private Consolidation provided by Private Leaders.
12. Which is better type of Consolidation? Why?
Federal Student Loan Consolidation is better than Private Student Loan Consolidation because
the former reduces monthly installments a lot,
it has a fixed rate of interest,
it nullifies the hassle of making multiple payments,
it improves your credit rating as all your previous loan are considered as repaid and
it improves your cash flow.
13. What is the demerit of Federal Student Loan Consolidation?
They do not accept Private Student Loan.
14. Is it a good idea to consolidate Federal and Private Student Loan with a Private Student Loan Consolidate?
No. This is definitely not a good idea as you will lose all the benefits of your Federal Loan by this method. If you have Federal Loan, you should consolidate them with a Federal Consolidator only. However, since they do not accept Private Student Loan, you can consolidate Private Student Loan with a Private Consolidator.
15. Are there any fees charged while consolidating Student Loan?
There are no fees charged for consolidating Federal Student Loan, However there may be fees charged for consolidating Private Student Loan.
16. Is there a credit worthiness check before consolidation?
There is no such check for Federal Consolidation but there will most probably be such a check for Private Consolidation.
17. Can I stop repaying my loan after applying for Consolidation?
No, you have to continue paying your loan till you are informed that they are repaid. Applying for consolidation is not the same as consolidation-in- place. There is a small time lag between the two and you should continue repaying the loan till then.
18. Is it possible to consolidate Student Loan along with credit card or other debt Consolidation?
No, you can not consolidate Federal Student Loan with credit card and other debts as they belong to different categories.
Disgusted with cumbersome procedures involved in loan consolidations and processing! The Student Consolidation Calculator comes, as a solution to all your consolidation needs. This tool is highly effective and precise in knowing your monthly loan repayment installments.
Federal and Private Loan Consolidation help you to reduce your loan burden and settle with a single amount a month and one lender to deal. While private loans have a fixed interest rate, as you must be aware of, the federal loans rates are varying and are set by the Govt every July.
In order to have the Monthly Loan Payment amount you need to enter the loan amount and the federal or private loan interest rate applicable in the particular year and get the desired result. This calculator enables you to know the consolidation and payment that will be available even before approaching the consolidator of loans. You should be particular about entering the base interest rate and not the rates after incentives as given by your lender.
The term of repayment and total loan liability and the Consolidation Rate helps in deriving the monthly liability after consolidation. These equated monthly installments enables you to decide upon your affordability of the consolidated loan and the lender regarding the competitive deal he could offer in helping the you repay the loan and maintain your credit worthiness and credit score. Apart from the above these calculators also allow reverse working. Given the monthly affordable amount the repayment term and interest rates are accordingly adjusted to suit your financial condition.
A number of websites on Student Loan and Consolidation offers this tool and an online query forum to answer all questions regarding consolidation. The tool not only helps in having a range of competitive rates to bargain, at the same reduces the effort by approaching the lender who offers the competitive rate and flexible repayment term suitable for you.
Student Loan FAQs
1. What is Student Loan?
The loan taken by students to meet the escalating cost of education is known as Student Loan.
2. Why do you need Student Loan?
Education is highly expensive in today’s world and to meet it on your own is very difficult. This is the reason why you need Student Loan.
3. For what purposes do you need Student Loan?
Student Loan are necessary not only to meet the exam fees, college fees had tuition fees but also to meet the cost of books, food, boarding and so on.
4. What are the types of Student Loan?
There are two types of Student Loan, depending on who is your lender- Federal Loan, given by the government, and Private Loan, given by the Private Lenders.
5. Which are more preferable? Why?
Federal Loan are much better than private loan because
They carry lower rates of interest,
They carry no interest during the period of schooling, and
There is an interest deferment for a period of 6 to 9 months after the period of schooling.
6. Can we do away with Private Loan?
Federal Loan are not sufficient to meet the entire cost of education for all. This is the reason why you need private loan. They are also known as Alternative Source of Financing.
7. Why do students find it tough to repay Student Loan?
The main reason why students find it tough to repay Student Loan is because
They accumulate too many loans in an immature way,
They find it hard to land on well paying jobs immediately,
They have too many loans with different lenders and find it tough to keep track of the same.
All these reasons force the students to default on their loan.
8. What is the remedy to repay Student Loan easily?
The best remedy that students can avail to avoid defaulting on their loan is Student Loan Consolidation.
9. What is Student Loan Consolidation?
Student Loan Consolidation is the process by which all educational loans with various lenders are combined into one loan under one lender with one rate of interest.
10. Can Private Student Loan be consolidated?
Yes, both Federal and Private Student Loan can be consolidated.
11. What are the types of Consolidation?
Depending on the type of lender, Consolidation is of two types:
Federal Consolidation provided by the government and
Private Consolidation provided by Private Leaders.
12. Which is better type of Consolidation? Why?
Federal Student Loan Consolidation is better than Private Student Loan Consolidation because
the former reduces monthly installments a lot,
it has a fixed rate of interest,
it nullifies the hassle of making multiple payments,
it improves your credit rating as all your previous loan are considered as repaid and
it improves your cash flow.
13. What is the demerit of Federal Student Loan Consolidation?
They do not accept Private Student Loan.
14. Is it a good idea to consolidate Federal and Private Student Loan with a Private Student Loan Consolidate?
No. This is definitely not a good idea as you will lose all the benefits of your Federal Loan by this method. If you have Federal Loan, you should consolidate them with a Federal Consolidator only. However, since they do not accept Private Student Loan, you can consolidate Private Student Loan with a Private Consolidator.
15. Are there any fees charged while consolidating Student Loan?
There are no fees charged for consolidating Federal Student Loan, However there may be fees charged for consolidating Private Student Loan.
16. Is there a credit worthiness check before consolidation?
There is no such check for Federal Consolidation but there will most probably be such a check for Private Consolidation.
17. Can I stop repaying my loan after applying for Consolidation?
No, you have to continue paying your loan till you are informed that they are repaid. Applying for consolidation is not the same as consolidation-in- place. There is a small time lag between the two and you should continue repaying the loan till then.
18. Is it possible to consolidate Student Loan along with credit card or other debt Consolidation?
No, you can not consolidate Federal Student Loan with credit card and other debts as they belong to different categories.
Private Consolidation Rates & Terms
Private Consolidation Rates & Terms
Opting for a private loan consolidation enables you to take advantage of the fixed interest rates in the first place. But it may not be the same with all lenders. While some provide fixed rates, others adjust their interest rates either on a quarterly or on a half yearly basis on a private loan consolidation.
Interest Rate:
The interest rates are based on the London Interbank Offered Rate (LIBOR). A percentage of margin is added to the LIBOR index and altered every time there is a change in the index. This margin is generally between 2 to 3% initially. Some lenders disclose the margin percentage. After the first year, long term margin percentage is applied which is at least twice the initial margin rate. This results in a change in the interest rate applicable on the loan which is generally between 11 to 12%. A rate discount is offered on interest rate where the payment is made by way of an electronic debit from the savings account. It varies from quarter to half a percent.
Repayment Terms:
Repayment term is considered solely on the amount of loan outstanding. Where the outstanding amount ranges from $7,000 to $30,000 the maximum period allowed is 25years and where it is $30,000 and more a 30 years time span is offered.
Monthly Installment:
While the repayment time is fixed based on the loan liability, the repayment method depends on the financial condition of the borrower. On the one hand a regular principal plus interest method is available where the equated monthly installments include both the principal and interest right from the first installment and on the other hand an interest only repayment option is available where the monthly installment amount will include only the interest portion for the first 24 installments after which it is converted into principal plus interest method.
Private Consolidation:
Normally consolidation involves no processing fee. Depending on the credit score of the borrower a fee called origination fee is levied varying between 0 to 2%. On a successful 48 on time payments this origination fee is cancelled or waived if at all any amount has been levied
.
Private Student Loan Consolidation: FAQs
A Private Loan Consolidation scheme has a certain procedure, presenting a step by step guide through the entire process and clarifying the common queries that arise in the process.
What is meant by Consolidating a Private Student Loan?
Students, Graduates and their parents are given an opportunity to reduce the complexities of handling a number of eligible private loans taken by them for educational purposes. Consolidation is a process by which the entire liability is reduced to one loan liability/payment accountable to a single lender at a lowest interest rate.
Who are eligible for a Private Loan Consolidation?
You should either be a student, graduate or their parent having one or more Private Loans not less than $7,500. You (including cosigner if any) are expected to have two years employment, verifiable residence and satisfactory credit worthiness, with a monthly income of not less than $1,500.
When can I proceed consolidating my Student Loan?
Immediately after all the eligible Private Loans opted for consolidation are disbursed you can consolidate.
What are the Eligible Loans for Consolidation?
Any alternative source of loan or a Private Loan incurred for the purpose of attending and studying in a qualified higher education program.
Is Consolidation allowed even if I have a Single Private Loan?
You are allowed to consolidate even a Single Private Loan to make use of the favorable interest rates offered under consolidation.
Can both Private and Federal Loan be consolidated together?
Federal Loan contains more favorable terms and advantages that are not available to Private Loan holder hence consolidation is not permitted. Both these loans can be consolidated separately.
How is the Interest Rate determined?
The rate applicable for a Private Consolidation is based on a prime rate namely the LIBOR (London Interbank Offered Rate) index to which a percentage of margin is added to arrive at the consolidation loan rate. After the first year a long term margin is added to the index rate to arrive at the loan rate. Discounts are offered for a direct payment debit from the bank account. These rates are generally fixed but are also subject to quarterly \ half yearly adjustments.
What is the Repayment term in consolidating Student Loan privately?
A maximum of 30 year period is allowed depending on the outstanding loan balance.
What are different Repayment options available for parents/students?
Payment of both principal and interest is one option and payment of interest portion alone for 24 installments and later converting into a principal plus interest is another option available.
Is there any fee for Consolidation?
No there is no fee for consolidation.
Opting for a private loan consolidation enables you to take advantage of the fixed interest rates in the first place. But it may not be the same with all lenders. While some provide fixed rates, others adjust their interest rates either on a quarterly or on a half yearly basis on a private loan consolidation.
Interest Rate:
The interest rates are based on the London Interbank Offered Rate (LIBOR). A percentage of margin is added to the LIBOR index and altered every time there is a change in the index. This margin is generally between 2 to 3% initially. Some lenders disclose the margin percentage. After the first year, long term margin percentage is applied which is at least twice the initial margin rate. This results in a change in the interest rate applicable on the loan which is generally between 11 to 12%. A rate discount is offered on interest rate where the payment is made by way of an electronic debit from the savings account. It varies from quarter to half a percent.
Repayment Terms:
Repayment term is considered solely on the amount of loan outstanding. Where the outstanding amount ranges from $7,000 to $30,000 the maximum period allowed is 25years and where it is $30,000 and more a 30 years time span is offered.
Monthly Installment:
While the repayment time is fixed based on the loan liability, the repayment method depends on the financial condition of the borrower. On the one hand a regular principal plus interest method is available where the equated monthly installments include both the principal and interest right from the first installment and on the other hand an interest only repayment option is available where the monthly installment amount will include only the interest portion for the first 24 installments after which it is converted into principal plus interest method.
Private Consolidation:
Normally consolidation involves no processing fee. Depending on the credit score of the borrower a fee called origination fee is levied varying between 0 to 2%. On a successful 48 on time payments this origination fee is cancelled or waived if at all any amount has been levied
.
Private Student Loan Consolidation: FAQs
A Private Loan Consolidation scheme has a certain procedure, presenting a step by step guide through the entire process and clarifying the common queries that arise in the process.
What is meant by Consolidating a Private Student Loan?
Students, Graduates and their parents are given an opportunity to reduce the complexities of handling a number of eligible private loans taken by them for educational purposes. Consolidation is a process by which the entire liability is reduced to one loan liability/payment accountable to a single lender at a lowest interest rate.
Who are eligible for a Private Loan Consolidation?
You should either be a student, graduate or their parent having one or more Private Loans not less than $7,500. You (including cosigner if any) are expected to have two years employment, verifiable residence and satisfactory credit worthiness, with a monthly income of not less than $1,500.
When can I proceed consolidating my Student Loan?
Immediately after all the eligible Private Loans opted for consolidation are disbursed you can consolidate.
What are the Eligible Loans for Consolidation?
Any alternative source of loan or a Private Loan incurred for the purpose of attending and studying in a qualified higher education program.
Is Consolidation allowed even if I have a Single Private Loan?
You are allowed to consolidate even a Single Private Loan to make use of the favorable interest rates offered under consolidation.
Can both Private and Federal Loan be consolidated together?
Federal Loan contains more favorable terms and advantages that are not available to Private Loan holder hence consolidation is not permitted. Both these loans can be consolidated separately.
How is the Interest Rate determined?
The rate applicable for a Private Consolidation is based on a prime rate namely the LIBOR (London Interbank Offered Rate) index to which a percentage of margin is added to arrive at the consolidation loan rate. After the first year a long term margin is added to the index rate to arrive at the loan rate. Discounts are offered for a direct payment debit from the bank account. These rates are generally fixed but are also subject to quarterly \ half yearly adjustments.
What is the Repayment term in consolidating Student Loan privately?
A maximum of 30 year period is allowed depending on the outstanding loan balance.
What are different Repayment options available for parents/students?
Payment of both principal and interest is one option and payment of interest portion alone for 24 installments and later converting into a principal plus interest is another option available.
Is there any fee for Consolidation?
No there is no fee for consolidation.
Private Student Loan Consolidation Eligibility
Private Student Consolidation Loan Eligibility
The consolidation of Private Loan or alternative source of loan primarily aims at reducing the number of loan repayment installments to one conveniently payable loan installment at the lowest interest rate. A Private Loan Consolidation cannot be combined with a Federal Loan Consolidation as we will lose out on the favorable terms of a Federal Loan. Well certain eligibility requirements like loan balance, credit worthiness, and income to loan ratio, work history and few others are to be satisfied to qualify for a Private Consolidation Loan. In detail they are as follows:
Hold one or more private loan for students
The outstanding loan amount should be minimum $7,500 and a maximum of $300,000
You should be within 2 years of graduating
Should be very much in the valid repayment period of the existing loan or grace period or deferment period
You should be more than 18 years of age, in the case of a cosigner he/she should also be more than 18
Both you and the cosigner should be US citizens or permanent residents with a US address
You should have been in the verifiable address for 2 years
You should be in a stable employment
Employment verification details required
You should have been in employment for 2 years
Positive credit score and credit worthiness in the past two years
Should have a minimum income of $18,000 either individually or in combination with the cosigner.
The private loans consolidated should satisfy the IRS definition of qualified educational loan.
The time of repayment depends on the outstanding loan balance up to a maximum of 30years. Two types of repayment plans are available a Regular Principal and Interest Repayment and the other interest only repayment for 24months and later converted into principal plus interest loan repayment. Generally these consolidations are done without charging any processing fee. The eligibility requirements presented could vary depending on the lender’s policy.
The consolidation of Private Loan or alternative source of loan primarily aims at reducing the number of loan repayment installments to one conveniently payable loan installment at the lowest interest rate. A Private Loan Consolidation cannot be combined with a Federal Loan Consolidation as we will lose out on the favorable terms of a Federal Loan. Well certain eligibility requirements like loan balance, credit worthiness, and income to loan ratio, work history and few others are to be satisfied to qualify for a Private Consolidation Loan. In detail they are as follows:
Hold one or more private loan for students
The outstanding loan amount should be minimum $7,500 and a maximum of $300,000
You should be within 2 years of graduating
Should be very much in the valid repayment period of the existing loan or grace period or deferment period
You should be more than 18 years of age, in the case of a cosigner he/she should also be more than 18
Both you and the cosigner should be US citizens or permanent residents with a US address
You should have been in the verifiable address for 2 years
You should be in a stable employment
Employment verification details required
You should have been in employment for 2 years
Positive credit score and credit worthiness in the past two years
Should have a minimum income of $18,000 either individually or in combination with the cosigner.
The private loans consolidated should satisfy the IRS definition of qualified educational loan.
The time of repayment depends on the outstanding loan balance up to a maximum of 30years. Two types of repayment plans are available a Regular Principal and Interest Repayment and the other interest only repayment for 24months and later converted into principal plus interest loan repayment. Generally these consolidations are done without charging any processing fee. The eligibility requirements presented could vary depending on the lender’s policy.
Known Facts About ACS Student Loan
Known Facts About ACS Student Loan
What do You Know About ACS Student Loans?
Students are offered financial assistance and support from colleges and universities with an intention to enable them complete their studies without any hassles. These loans or grants are also offered by federal government agencies and private organizations. Financial aid offered by colleges and universities are specific to students who pursue their education in that particular college or university.
Normally these financial support programmes are managed by colleges and institutions offering them. Considering the volume of work and the variety of details to be collected and processed of late the entire set of processing is outsourced to reputed companies specializing in business process outsourcing field. One such well reputed and highly established company in the U.S. is Affiliated Computer Services (ACS). Student loans outsourced by educational institutions and processed by ACS are popularly known as ACS Student Loan.
What is ACS?
Affiliated Computer Services is a specialist in business and information technology outsourcing services. A FORTUNE 500 company that has been serving colleges, universities and educational institutions over several decades, is processing closed 9 million loan transactions as of date. A service of this nature enables educational institutions save their valuable time, money and resource which can be better utilized for effective and efficient management of schools and their functioning.
How do ACS Student Loans Operate?
Remember ACS is an organization which just manages student loans for colleges and institutions which have contracted them. Hence the process of acquiring a student loan (whether ACS or others) is all just the same. Submit a Free Application forFederal Student Aid (FAFSA), after the loan application has been duly processed by the respective school and the US Department of Education a letter stating the award and the amount you will be eligible for, will reach the applicant.
Presenting a list of benefits offered by ACS student loans for your reference:
An expert in information technological services ACS offers student loan services with a number of account management tools.
It is an online processing of loan accounts which requires registration and offers access to online payments, payment history, interest rates, and financial data email notification, account updation and deferment application forms.
Outsourcing the financial management services to an expert organization like ACS enables educational institutions to reduce their cost of operation and consequently the rise in the cost of education.
Having ACS student loan or any other Student Loan the difference is all about who manages the debt and the facilities so offered by the respective lender or debt manager
What do You Know About ACS Student Loans?
Students are offered financial assistance and support from colleges and universities with an intention to enable them complete their studies without any hassles. These loans or grants are also offered by federal government agencies and private organizations. Financial aid offered by colleges and universities are specific to students who pursue their education in that particular college or university.
Normally these financial support programmes are managed by colleges and institutions offering them. Considering the volume of work and the variety of details to be collected and processed of late the entire set of processing is outsourced to reputed companies specializing in business process outsourcing field. One such well reputed and highly established company in the U.S. is Affiliated Computer Services (ACS). Student loans outsourced by educational institutions and processed by ACS are popularly known as ACS Student Loan.
What is ACS?
Affiliated Computer Services is a specialist in business and information technology outsourcing services. A FORTUNE 500 company that has been serving colleges, universities and educational institutions over several decades, is processing closed 9 million loan transactions as of date. A service of this nature enables educational institutions save their valuable time, money and resource which can be better utilized for effective and efficient management of schools and their functioning.
How do ACS Student Loans Operate?
Remember ACS is an organization which just manages student loans for colleges and institutions which have contracted them. Hence the process of acquiring a student loan (whether ACS or others) is all just the same. Submit a Free Application forFederal Student Aid (FAFSA), after the loan application has been duly processed by the respective school and the US Department of Education a letter stating the award and the amount you will be eligible for, will reach the applicant.
Presenting a list of benefits offered by ACS student loans for your reference:
An expert in information technological services ACS offers student loan services with a number of account management tools.
It is an online processing of loan accounts which requires registration and offers access to online payments, payment history, interest rates, and financial data email notification, account updation and deferment application forms.
Outsourcing the financial management services to an expert organization like ACS enables educational institutions to reduce their cost of operation and consequently the rise in the cost of education.
Having ACS student loan or any other Student Loan the difference is all about who manages the debt and the facilities so offered by the respective lender or debt manager
Student Loan Consolidator
Student loan consolidator
For students who are embarking on the confusing procedure of taking a loan it should be understood that student loan consolidation entails combining more than one student loan into one loan. Many graduates choose consolidation to relieve their financial burden. There are two types of student loan consolidator available, Federal student loan and Private student loan.
A borrower is eligible for Federal Consolidation loan if they have: Any Stafford, PLUS, Perkins, HEAL, Health Professions Student Loans, Loans for Disadvantaged Students, Nursing student loans, and other federal student loans. At least $5,000 in federal education loans, any federal education loans that are currently in repayment, grace, deferment, or forbearance.
However the process of getting a personal loan also comes with its related problems: Borrowers are eligible for private student loans only if they have: Any private student loans from banks, credit unions, or schools, at least $5,000 in private student loans, good credit or a cosigner with good credit, graduated from or will be graduating with a post-secondary program of study.
The benefits of consolidating include: The convenience of making only one payment per month, lower interest rates, lower monthly payments, and more time allowed to repay the loan. Also one has the option of choosing time limits of repayment up to 30 years. Federal Interest loan consolidation rates are fixed for the life of the loan, which means that the interest rate on the loan will never change. Most private student loan consolidators are variable which means the interest rate on the loan(s) can change at anytime during the loan contract. The monthly loan payments can be reduced by up to 60%. Student loan consolidation can also improve a borrowers overall credit rating, which improves your chances of getting loans in the future too. Most companies will offer borrowers a flexible and convenient repayment plan.
The disadvantage of consolidation is that the interest rate will be higher than the interest accrued from the multiple loans. A consolidated student loan can be extended from the usual ten year repayment to a thirty year repayment option. This means the borrower will be paying out much more money during the duration of the loan agreement.
Due to the exorbitant cost of college education, most or half of all students have needed to apply for student loan consolidator to finance their education.
For example, if a borrower is making a combined monthly payment of $323 dollars, after they choose to consolidate, it is possible that they can reduce these payments into only one monthly payment of only $204.
There are many student loan consolidator companies available. These companies are very competitive and offer many advantages for graduates to choose them for loan consolidation. Listed below are just a short list of available names and phone numbers of private lenders who offer student loan consolidation. Private student loan consolidators offer many advantages for borrowers.
Chela Financial 877-992-4352
Citibank 800-967-2400
Edsouth 800-337-6884
Fleet Bank 888-353-3846
Nelli Mae 800-367-8848
Northstar 800-366-0604
Sun Trust 800-552-3006
USA group 800-448-3533
Wells Fargo 800-658-3567
There are many numerous federal student loan consolidator available on the World Wide Web as well. A short list of reputable online lenders are:
These can help in consolidating your student loan debt with one short quick application. To qualify: The borrower must owe more than $7,500 in federal student loans, have at least one unconsolidated student loan, be out of school or leaving school within the next 6 months, and not be in default of their current loan.
The Next Student consolidates student loans which have not been consolidated previously, are out of school and in repayment of their loans, will be graduating within six months, and loans must not be in default. They service loans that are over the $15,000 loan amount minimum. NextStudent is a premium provider of federal, private student loans and federal student loan consolidations. They also have a state-of-the-art scholarship search engine. NextStudent's scholarship search engine has received numerous awards and recognition including spots in Newsweek and Home PC's "Editor's Choice Award Winners," and features on CNN and ABC's 20/20.
These companies will provide all or some of these benefits:
Lock in low federal interest rates.
Lower payments by as much as 50% or more.
No application fees or charges.
No pre-payment penalties.
Tax-deductible interest for many borrowers.
No credit checks or co-signers required.
And it must be stressed that all of this is just a one page application. For example, any lender may offer a $30,000 Federal Stafford student loan borrower a twenty year loan term paying only $204 per month. A ten year unconsolidated loan would cost the borrower $323 per month. They offer the borrower the chance to reduce their interest rates by an additional 1.25%. They do not charge any fees or perform any credit checks.
Federal student loan consolidator may offer these options when applying for a consolidated loan:
Lock in rates as low as 2.875%.
Lower payments by as much as 50% or more
No application fees or charges
No pre-payment penalties
Tax-deductible interest for many borrowers
No credit checks or co-signers required
Federal student loans available are:
Federal Stafford Loan Consolidation.
PLUS Loan Consolidation, and Direct Loan Consolidation.
If a borrower chooses private student loan consolidation for their Federal loans they can loose their federal loan benefits.
Sallie Mae has more than ten million borrowers nationwide. They offer safe and easy online applications, lowest statutory interest rates, discounts for timely payments, and no fees or credit checks.
A borrower who makes timely payments is eligible for certain benefits which include:
One full percentage point reduction in the interest rate happens during periods of active repayment, but this comes after
the first 36 scheduled payments. The borrower must have outstanding student loans of at least $10,000 at the time of application. Immediate 0.25% reduction in the interest rate after signing up for automatic debit and making electronic payments. To be eligible for this benefit, the initial consolidation balance should be a minimum of $7,500. If the United States government has been paying the interest on your loan(s), the government will continue to do so: If the burden of your student loan has been too much for you and you have defaulted on your loan(s), consolidating may lower your monthly payment enough so as to make repayment affordable for you.
You can consolidate all your student loans, or you can choose to consolidate some of your loans, or you can consolidate just one loan. The choice is often left with you.
If you choose to consolidate your student loan(s) together with your spouse, your monthly payment will almost certainly be lower than what you and your spouse were paying separately. Couples certainly stand to benefit by going at it in this manner. Unlike other consumer loan products, there are no: Credit bureau checks, prepayment penalties, or bank fees.
If you consolidate multiple student loans, you'll end up with one company or organization to contact for questions, comments and complaints about your loans.
Student Loan Consolidation: The Drawbacks
If you choose to consolidate your student loan(s) during your "grace period," your grace period becomes invalid and repayment begins right away.
You can only consolidate your student loan(s) once.
If you consolidate your student loan(s) now and, at some point in the future, and interest rates fall even lower than the rate at which you consolidated, then you won't be able to re-consolidate.
If you decide to go back to school after consolidating your student loans, and you borrow more money under a federally guaranteed student loan program, you will not be able to consolidate this new loan together with your previous loan(s). However if you choose to extend your repayment term, the overall cost of your student loan(s) goes up. You will most likely lose deferment, forgiveness, cancellation and forbearance options.
For example, in the case of Jack and his situation, the government agreed to remove all derogatory items connected with the default status of his student loan, as long as he made steady repeated payments without fail for a year.
A bank would however neither offer nor agree to a similar deal if you consolidate your student loans with your spouse. Then you and your spouse will both be responsible for loan repayment if you end up getting a divorce.
For all these benefits that student loan consolidation provides, the students of today are truly looking at it as a heaven send, as it has made the mind boggling procedure of taking a loan easier on the mind and on the purse strings than it ever was.
For students who are embarking on the confusing procedure of taking a loan it should be understood that student loan consolidation entails combining more than one student loan into one loan. Many graduates choose consolidation to relieve their financial burden. There are two types of student loan consolidator available, Federal student loan and Private student loan.
A borrower is eligible for Federal Consolidation loan if they have: Any Stafford, PLUS, Perkins, HEAL, Health Professions Student Loans, Loans for Disadvantaged Students, Nursing student loans, and other federal student loans. At least $5,000 in federal education loans, any federal education loans that are currently in repayment, grace, deferment, or forbearance.
However the process of getting a personal loan also comes with its related problems: Borrowers are eligible for private student loans only if they have: Any private student loans from banks, credit unions, or schools, at least $5,000 in private student loans, good credit or a cosigner with good credit, graduated from or will be graduating with a post-secondary program of study.
The benefits of consolidating include: The convenience of making only one payment per month, lower interest rates, lower monthly payments, and more time allowed to repay the loan. Also one has the option of choosing time limits of repayment up to 30 years. Federal Interest loan consolidation rates are fixed for the life of the loan, which means that the interest rate on the loan will never change. Most private student loan consolidators are variable which means the interest rate on the loan(s) can change at anytime during the loan contract. The monthly loan payments can be reduced by up to 60%. Student loan consolidation can also improve a borrowers overall credit rating, which improves your chances of getting loans in the future too. Most companies will offer borrowers a flexible and convenient repayment plan.
The disadvantage of consolidation is that the interest rate will be higher than the interest accrued from the multiple loans. A consolidated student loan can be extended from the usual ten year repayment to a thirty year repayment option. This means the borrower will be paying out much more money during the duration of the loan agreement.
Due to the exorbitant cost of college education, most or half of all students have needed to apply for student loan consolidator to finance their education.
For example, if a borrower is making a combined monthly payment of $323 dollars, after they choose to consolidate, it is possible that they can reduce these payments into only one monthly payment of only $204.
There are many student loan consolidator companies available. These companies are very competitive and offer many advantages for graduates to choose them for loan consolidation. Listed below are just a short list of available names and phone numbers of private lenders who offer student loan consolidation. Private student loan consolidators offer many advantages for borrowers.
Chela Financial 877-992-4352
Citibank 800-967-2400
Edsouth 800-337-6884
Fleet Bank 888-353-3846
Nelli Mae 800-367-8848
Northstar 800-366-0604
Sun Trust 800-552-3006
USA group 800-448-3533
Wells Fargo 800-658-3567
There are many numerous federal student loan consolidator available on the World Wide Web as well. A short list of reputable online lenders are:
These can help in consolidating your student loan debt with one short quick application. To qualify: The borrower must owe more than $7,500 in federal student loans, have at least one unconsolidated student loan, be out of school or leaving school within the next 6 months, and not be in default of their current loan.
The Next Student consolidates student loans which have not been consolidated previously, are out of school and in repayment of their loans, will be graduating within six months, and loans must not be in default. They service loans that are over the $15,000 loan amount minimum. NextStudent is a premium provider of federal, private student loans and federal student loan consolidations. They also have a state-of-the-art scholarship search engine. NextStudent's scholarship search engine has received numerous awards and recognition including spots in Newsweek and Home PC's "Editor's Choice Award Winners," and features on CNN and ABC's 20/20.
These companies will provide all or some of these benefits:
Lock in low federal interest rates.
Lower payments by as much as 50% or more.
No application fees or charges.
No pre-payment penalties.
Tax-deductible interest for many borrowers.
No credit checks or co-signers required.
And it must be stressed that all of this is just a one page application. For example, any lender may offer a $30,000 Federal Stafford student loan borrower a twenty year loan term paying only $204 per month. A ten year unconsolidated loan would cost the borrower $323 per month. They offer the borrower the chance to reduce their interest rates by an additional 1.25%. They do not charge any fees or perform any credit checks.
Federal student loan consolidator may offer these options when applying for a consolidated loan:
Lock in rates as low as 2.875%.
Lower payments by as much as 50% or more
No application fees or charges
No pre-payment penalties
Tax-deductible interest for many borrowers
No credit checks or co-signers required
Federal student loans available are:
Federal Stafford Loan Consolidation.
PLUS Loan Consolidation, and Direct Loan Consolidation.
If a borrower chooses private student loan consolidation for their Federal loans they can loose their federal loan benefits.
Sallie Mae has more than ten million borrowers nationwide. They offer safe and easy online applications, lowest statutory interest rates, discounts for timely payments, and no fees or credit checks.
A borrower who makes timely payments is eligible for certain benefits which include:
One full percentage point reduction in the interest rate happens during periods of active repayment, but this comes after
the first 36 scheduled payments. The borrower must have outstanding student loans of at least $10,000 at the time of application. Immediate 0.25% reduction in the interest rate after signing up for automatic debit and making electronic payments. To be eligible for this benefit, the initial consolidation balance should be a minimum of $7,500. If the United States government has been paying the interest on your loan(s), the government will continue to do so: If the burden of your student loan has been too much for you and you have defaulted on your loan(s), consolidating may lower your monthly payment enough so as to make repayment affordable for you.
You can consolidate all your student loans, or you can choose to consolidate some of your loans, or you can consolidate just one loan. The choice is often left with you.
If you choose to consolidate your student loan(s) together with your spouse, your monthly payment will almost certainly be lower than what you and your spouse were paying separately. Couples certainly stand to benefit by going at it in this manner. Unlike other consumer loan products, there are no: Credit bureau checks, prepayment penalties, or bank fees.
If you consolidate multiple student loans, you'll end up with one company or organization to contact for questions, comments and complaints about your loans.
Student Loan Consolidation: The Drawbacks
If you choose to consolidate your student loan(s) during your "grace period," your grace period becomes invalid and repayment begins right away.
You can only consolidate your student loan(s) once.
If you consolidate your student loan(s) now and, at some point in the future, and interest rates fall even lower than the rate at which you consolidated, then you won't be able to re-consolidate.
If you decide to go back to school after consolidating your student loans, and you borrow more money under a federally guaranteed student loan program, you will not be able to consolidate this new loan together with your previous loan(s). However if you choose to extend your repayment term, the overall cost of your student loan(s) goes up. You will most likely lose deferment, forgiveness, cancellation and forbearance options.
For example, in the case of Jack and his situation, the government agreed to remove all derogatory items connected with the default status of his student loan, as long as he made steady repeated payments without fail for a year.
A bank would however neither offer nor agree to a similar deal if you consolidate your student loans with your spouse. Then you and your spouse will both be responsible for loan repayment if you end up getting a divorce.
For all these benefits that student loan consolidation provides, the students of today are truly looking at it as a heaven send, as it has made the mind boggling procedure of taking a loan easier on the mind and on the purse strings than it ever was.
Poor Credit Loan
Poor credit loan
Poor Credit Loans are loans where the borrower may have a few problems with their credit and can not be eligible for a conforming loan. For this you may want to search for a credit repair company and make use of their help to raise your credit score. Just inquiry your mortgage broker for a referral to a reputable company. For that limit staying with a Poor Credit Loans for a long period of time. However, as time goes by, with better settlement behavior, you can finance to a loan with more beneficial terms in a relatively short amount of time. Thus, get in touch with a mortgage professional for every 6 months to have him or her to estimate your credit scores and your existing mortgage condition.
Interest rates
The majority people have the imagined that Poor Credit Loans are high-priced. But this is not at all. Just talk about your position with your trusted broker and bring off for the best loan you earn. Actually, nearly all lenders have a minimal score requirement of 500 to be eligible for financing. Suppose, if your score is beneath that level you may have to look for private hard money investors. Obviously, these personal loans often come with higher fees and rates that formal or sub prime lenders. However, Poor Credit Loans come with higher interest rates and normally come with a 2 or 3 y ear pre payment penalty. Frequently, the pre pay penalty may be allotted to your loan, is a security to the lending institution. To add, the higher interest rate and fees are offered by the lender on pre pay penalty of the Poor Credit loan to assure they make a return on their investment. Of course, the pre pay penalty can be purchased normally with a fee.
Poor Credit Loan Programs
Basically, there are loan programs existing particularly for borrowers with poor credit, although there are a lot of extreme limitations that may prevent the borrower from being capable to qualify. For instance, having a 475 fico score, you may be capable to qualify for a loan, nevertheless only for 70% of the value of the home. Hence, this would mean that you ought to come up with a 30% down payment where you are buying the home. Since, for most borrowers, this would put off them from being able to purchase the home.
Poor Credit Loans to Consumers
Poor Credit Loans are accessible to consumers that suit with a fico score bracket initiating as low as 475. Actually, lenders analysis mortgage history and consumer credit as a part of the sanction procedure for most poor credit loan situations. Loan to Value is also a factor in the approval process of a Poor Credit Loans. Further, lending institutions fix the loan to value to a 70% as an eligible
percentage, your measured value or equity positioning in your home decides the loan to value. Obviously, good mortgage history, consumer credit, and Loan to value are the three inputs in the loan procedure which will facilitate you stipulate for a refinance or acquisition of home. In all cases lenders will give up the pre pay penalty when the borrower wishes to bear a slightly higher interest rate. Rather, the loans are generally for 2-3 year adaptable rate mortgage to hold the payments at a practical amount. The principle following this is to finance you in 2-3 years to bring up you to an improved condition. Consequently, these types of loans can give you the opportunity to fresh up your credit and provide you the power required to stay away from bankruptcy. Rather, they too will give the chance to compensate back child support, former payments, and render the cash wanted for home betterments.
Poor Credit Loans Lenders
In Poor Credit Loans lenders bill more points and upper interest rates towards you who have poor credit. Conversely, loans to borrowers on poor credit bear extremely high danger and lenders justify payment for this risk. On the other hand, borrowers with good credit are not supposed to allow themselves participate into a loan contract where they pay points and rates based on a bad credit loan. A few national companies may file liquidation to defend themselves from legal action on fake loan practices. Thus, lenders have to know understandable dissimilarity between Poor Credit profile and No Credit profile. However, no credit simply implies that the borrower has not had a history by means of credit. Habitually, a person along with Poor Credit or Bad Credit profile has proved a practice of abusing credit. Frequently, people can even be eligible for very good rates .Even if a poor credit loan is pricier compared to A grade counterpart; it frequently holds complete sense for a homeowner to acquire such a loan. Because, they are a short term result to merge debt, enhance cash run and restructure broken credit.
Conclusion:
However, Poor Credit Loans holds a higher rate of interest as judged against the other normal loans. On the contrary, Poor Credit Loans assists you save money on the interest you pay besides the loan. So, do not allow your past errors to spoil your future dreams
Poor Credit Loans are loans where the borrower may have a few problems with their credit and can not be eligible for a conforming loan. For this you may want to search for a credit repair company and make use of their help to raise your credit score. Just inquiry your mortgage broker for a referral to a reputable company. For that limit staying with a Poor Credit Loans for a long period of time. However, as time goes by, with better settlement behavior, you can finance to a loan with more beneficial terms in a relatively short amount of time. Thus, get in touch with a mortgage professional for every 6 months to have him or her to estimate your credit scores and your existing mortgage condition.
Interest rates
The majority people have the imagined that Poor Credit Loans are high-priced. But this is not at all. Just talk about your position with your trusted broker and bring off for the best loan you earn. Actually, nearly all lenders have a minimal score requirement of 500 to be eligible for financing. Suppose, if your score is beneath that level you may have to look for private hard money investors. Obviously, these personal loans often come with higher fees and rates that formal or sub prime lenders. However, Poor Credit Loans come with higher interest rates and normally come with a 2 or 3 y ear pre payment penalty. Frequently, the pre pay penalty may be allotted to your loan, is a security to the lending institution. To add, the higher interest rate and fees are offered by the lender on pre pay penalty of the Poor Credit loan to assure they make a return on their investment. Of course, the pre pay penalty can be purchased normally with a fee.
Poor Credit Loan Programs
Basically, there are loan programs existing particularly for borrowers with poor credit, although there are a lot of extreme limitations that may prevent the borrower from being capable to qualify. For instance, having a 475 fico score, you may be capable to qualify for a loan, nevertheless only for 70% of the value of the home. Hence, this would mean that you ought to come up with a 30% down payment where you are buying the home. Since, for most borrowers, this would put off them from being able to purchase the home.
Poor Credit Loans to Consumers
Poor Credit Loans are accessible to consumers that suit with a fico score bracket initiating as low as 475. Actually, lenders analysis mortgage history and consumer credit as a part of the sanction procedure for most poor credit loan situations. Loan to Value is also a factor in the approval process of a Poor Credit Loans. Further, lending institutions fix the loan to value to a 70% as an eligible
percentage, your measured value or equity positioning in your home decides the loan to value. Obviously, good mortgage history, consumer credit, and Loan to value are the three inputs in the loan procedure which will facilitate you stipulate for a refinance or acquisition of home. In all cases lenders will give up the pre pay penalty when the borrower wishes to bear a slightly higher interest rate. Rather, the loans are generally for 2-3 year adaptable rate mortgage to hold the payments at a practical amount. The principle following this is to finance you in 2-3 years to bring up you to an improved condition. Consequently, these types of loans can give you the opportunity to fresh up your credit and provide you the power required to stay away from bankruptcy. Rather, they too will give the chance to compensate back child support, former payments, and render the cash wanted for home betterments.
Poor Credit Loans Lenders
In Poor Credit Loans lenders bill more points and upper interest rates towards you who have poor credit. Conversely, loans to borrowers on poor credit bear extremely high danger and lenders justify payment for this risk. On the other hand, borrowers with good credit are not supposed to allow themselves participate into a loan contract where they pay points and rates based on a bad credit loan. A few national companies may file liquidation to defend themselves from legal action on fake loan practices. Thus, lenders have to know understandable dissimilarity between Poor Credit profile and No Credit profile. However, no credit simply implies that the borrower has not had a history by means of credit. Habitually, a person along with Poor Credit or Bad Credit profile has proved a practice of abusing credit. Frequently, people can even be eligible for very good rates .Even if a poor credit loan is pricier compared to A grade counterpart; it frequently holds complete sense for a homeowner to acquire such a loan. Because, they are a short term result to merge debt, enhance cash run and restructure broken credit.
Conclusion:
However, Poor Credit Loans holds a higher rate of interest as judged against the other normal loans. On the contrary, Poor Credit Loans assists you save money on the interest you pay besides the loan. So, do not allow your past errors to spoil your future dreams
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