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).
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
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
Student Loan Consolidation Center
Student loan consolidation center
The Consolidation Center has aided lot of borrowers uphold a low fixed interest rate for the term of loan. There is no compulsion, no starting fees, and no prepayment penalties with this program. The consolidation expert representatives are always glad to offer you with the information you want to make your decision. They provide a program that can assist you reduce your monthly payments on unsecured debt by 50% or more. The committed student loan consolidation center can be preferred for consolidation due to many reasons, and the major point is that you can save some money. With consolidation, you lock in the interest rate throughout the consolidation loan. As well as the largest savings from consolidating your loans, the consolidation center provides the best payoffs package available anywhere. This rewards package can cut your interest rate by further a 1.25%.
Services:
They should make use of a calculation process to find out the appropriate interest rate. They will take a weighted standard of the interest rates on all outstanding loan programs you have and round up to the nearest 1/8 of 1%. The interest rate achieved with this calculation can then be cut down up to an additional 1.25% if you take benefits of this consolidation. Here is how:
• All borrowers profit from an additional 1.25% rate reduction when your payments are automatically subtracted from your checking account.
• Borrowers with $20,000 or more in student loans benefit from an added 1% rate reduction later on you making36 on-time payments.
Features:
You can get many advantages from student loan consolidation center by start saving money on completing the student loan consolidation process these days! Many consolidation centers offer student loan consolidation refinancing. Student Loan Consolidation Centers must have these four general features:
1. Provides minimum rates of interest, currently 1.625 percent fixed interest for the duration of the students federal loan; now, the rate being accessible by the Department of Education is a percentage of 3.37.
2. Using consolidation, a student can reduce their payment each month by a maximum of 60 percent through student loan consolidation centers.
3. Through auto debit, one can obtain an additional 0.25 percent rate reduction with student loan consolidation centers.
4. Payment options of student loan consolidation centers are flexible.
Choose a Best Consolidation Center:
In the past, you may have incurred many consolidation offers. The fact is that the Federal Loan Consolidation Program is a government program, thus the basic terms of a consolidation loan, including basic interest rate, will not differ from center to center. How then to choose between the variety of centers and offers Three major unique features separate consolidation companies.
• Customer Service
The consolidation procedure can be fast, simple and effortless, if you select the right center. Competition for consolidation loans has become progressive. Leading centers have formulated many customer service friendly services. They also provide fully online applications with electronic signature, capability to track loan status online at call center hours. Ensure the center you prefer provides these options; even though you do not use all of them they are a sure sign your center is customer focused.
• Borrower Benefits
Ask potential centers what added benefits they offer in addition to the standard consolidation package. These profits might
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include further interest rate reductions for using electronic payments and for making a certain number of prompt payments. One thing to consider is that your present center may have a disincentive to provide you extra benefits to consolidate. Offering borrower benefits costs centers cash out of their own pockets and centers offer them begrudgingly to compete for your business. Understand that your current center may view you as a captive customer and therefore may not be as forced to offer you additional incentives to consolidate.
• Track Record and Stability
Ask the experience of the company has in consolidating loans. Due to the refinancing boom, any number of small online student loan marketing companies has developed in recent years, many with specified experience in the workings of consolidation. It pays to choose a company that has the experience and record of accomplishment to know the consolidation ins and outs since usually you can only consolidate once so you should get it best the first time. It also pays to choose a company that has the stability to stand following its assures to you. Many consolidation companies do not service their own loans but as an alternative sell them to other financial corporations. You can generally fell much more secure that your borrower benefits will be pleased if your center also services your loan. At the same time as having your loan sold by your consolidation company is not unavoidably, a bad thing you have to get assurances that you will hold your borrower benefits if your loan is sold.
Student Consolidation Loan Service:
Use the Federal Student Loan Consolidation Program sensibly. A powerful resource will make more efficient time and costs throughout the repayment period of your federally assured student loans. By offering a reduced payment, a secure, fixed rate and flexible payment plan, your repayment plan will be gainful. Single billing makes simpler your accounting and makes easier to track your payment advancement. Eligibility is simple. There is no credit check or income verification. Unlike other loans, you should not offer any collateral and there is not at all any family income limitation. No any additional charges. You will benefit from only one lower payment each month. Not like that of your existing loans with variable rates, which leave you susceptible to inflated interest rates, you can enjoy a lower fixed rate for the life of repayment period of your loans.
Benefits and Rewards:
If you prefer to pay early, do so without penalty. Determine from your tax consultant which interest is tax deductible. Learn more about flexible repayment options. In general, you will be definite to cut your debt to income ratio since you will be paying off more of the principal only. Lock in your low fixed rate loan immediately and benefit from the absolute assurance that this will be the rate you will pay for the life of the loan. Consolidation Loans join several student or parent loans into one larger loan from a single lender, which is then applied to return the balances on the other loans. a few lenders provide private consolidation loans for private education loans as well.
The Consolidation Center has aided lot of borrowers uphold a low fixed interest rate for the term of loan. There is no compulsion, no starting fees, and no prepayment penalties with this program. The consolidation expert representatives are always glad to offer you with the information you want to make your decision. They provide a program that can assist you reduce your monthly payments on unsecured debt by 50% or more. The committed student loan consolidation center can be preferred for consolidation due to many reasons, and the major point is that you can save some money. With consolidation, you lock in the interest rate throughout the consolidation loan. As well as the largest savings from consolidating your loans, the consolidation center provides the best payoffs package available anywhere. This rewards package can cut your interest rate by further a 1.25%.
Services:
They should make use of a calculation process to find out the appropriate interest rate. They will take a weighted standard of the interest rates on all outstanding loan programs you have and round up to the nearest 1/8 of 1%. The interest rate achieved with this calculation can then be cut down up to an additional 1.25% if you take benefits of this consolidation. Here is how:
• All borrowers profit from an additional 1.25% rate reduction when your payments are automatically subtracted from your checking account.
• Borrowers with $20,000 or more in student loans benefit from an added 1% rate reduction later on you making36 on-time payments.
Features:
You can get many advantages from student loan consolidation center by start saving money on completing the student loan consolidation process these days! Many consolidation centers offer student loan consolidation refinancing. Student Loan Consolidation Centers must have these four general features:
1. Provides minimum rates of interest, currently 1.625 percent fixed interest for the duration of the students federal loan; now, the rate being accessible by the Department of Education is a percentage of 3.37.
2. Using consolidation, a student can reduce their payment each month by a maximum of 60 percent through student loan consolidation centers.
3. Through auto debit, one can obtain an additional 0.25 percent rate reduction with student loan consolidation centers.
4. Payment options of student loan consolidation centers are flexible.
Choose a Best Consolidation Center:
In the past, you may have incurred many consolidation offers. The fact is that the Federal Loan Consolidation Program is a government program, thus the basic terms of a consolidation loan, including basic interest rate, will not differ from center to center. How then to choose between the variety of centers and offers Three major unique features separate consolidation companies.
• Customer Service
The consolidation procedure can be fast, simple and effortless, if you select the right center. Competition for consolidation loans has become progressive. Leading centers have formulated many customer service friendly services. They also provide fully online applications with electronic signature, capability to track loan status online at call center hours. Ensure the center you prefer provides these options; even though you do not use all of them they are a sure sign your center is customer focused.
• Borrower Benefits
Ask potential centers what added benefits they offer in addition to the standard consolidation package. These profits might
window.google_render_ad();
include further interest rate reductions for using electronic payments and for making a certain number of prompt payments. One thing to consider is that your present center may have a disincentive to provide you extra benefits to consolidate. Offering borrower benefits costs centers cash out of their own pockets and centers offer them begrudgingly to compete for your business. Understand that your current center may view you as a captive customer and therefore may not be as forced to offer you additional incentives to consolidate.
• Track Record and Stability
Ask the experience of the company has in consolidating loans. Due to the refinancing boom, any number of small online student loan marketing companies has developed in recent years, many with specified experience in the workings of consolidation. It pays to choose a company that has the experience and record of accomplishment to know the consolidation ins and outs since usually you can only consolidate once so you should get it best the first time. It also pays to choose a company that has the stability to stand following its assures to you. Many consolidation companies do not service their own loans but as an alternative sell them to other financial corporations. You can generally fell much more secure that your borrower benefits will be pleased if your center also services your loan. At the same time as having your loan sold by your consolidation company is not unavoidably, a bad thing you have to get assurances that you will hold your borrower benefits if your loan is sold.
Student Consolidation Loan Service:
Use the Federal Student Loan Consolidation Program sensibly. A powerful resource will make more efficient time and costs throughout the repayment period of your federally assured student loans. By offering a reduced payment, a secure, fixed rate and flexible payment plan, your repayment plan will be gainful. Single billing makes simpler your accounting and makes easier to track your payment advancement. Eligibility is simple. There is no credit check or income verification. Unlike other loans, you should not offer any collateral and there is not at all any family income limitation. No any additional charges. You will benefit from only one lower payment each month. Not like that of your existing loans with variable rates, which leave you susceptible to inflated interest rates, you can enjoy a lower fixed rate for the life of repayment period of your loans.
Benefits and Rewards:
If you prefer to pay early, do so without penalty. Determine from your tax consultant which interest is tax deductible. Learn more about flexible repayment options. In general, you will be definite to cut your debt to income ratio since you will be paying off more of the principal only. Lock in your low fixed rate loan immediately and benefit from the absolute assurance that this will be the rate you will pay for the life of the loan. Consolidation Loans join several student or parent loans into one larger loan from a single lender, which is then applied to return the balances on the other loans. a few lenders provide private consolidation loans for private education loans as well.
Student Loan Consolidation
Student Loan Consolidation
Student Loan ConsolidationWhen it’s time to repay your student loans, you can simplify the process of making your monthly payments by consolidating your loans. The Federal Consolidation Loan allows you to combine your existing federal student loans into one new loan. Only loans in grace or repayment status are eligible for consolidation. If you have federal loans with multiple lenders, you can consolidate them with one lender and have the convenience of just making one payment each month. But convenience isn’t the only advantage to consolidation! Consolidating student loans can be a smart financial move, also. If you’re considering loan consolidation, watch for periods when interest rates are low so that you can consolidate your variable rate federal loans at a lower fixed interest rate for the life of your loan. The interest rate on a Federal Consolidation Loan is calculated using the weighted average interest rate of loans consolidated, rounded up to the nearest 1/8%, or 8.25%, whichever is less. Sometimes, when you consolidate your loans, the loan term may be extended which could allow for lower monthly payments and an improved cash flow.When it’s time to select a lender for your student loan consolidation, you have the freedom to choose any lender you like. It’s a good idea to look for a lender with a solid reputation and one with plenty of student loan experience. If all your existing loans are with one lender, you may want to first consider consolidating your loans with that lender. Be sure you make an informed decision before you consolidate. Once you consolidate, you forfeit any benefits you may have had with individual federal loans and you cannot take the loans out of consolidation.
Ask the lender these questions to help you decide:
When should I consolidate my federal student loans?
What are the advantages of a consolidation loan?
Are there disadvantages to loan consolidation?
Will I lose my grace period if I consolidate right after graduation?
What are my maximum repayment term and my monthly payment if I choose to consolidate?
What is the minimum loan amount I can consolidate?
What other payment options are available that may meet my need of creating a more affordable monthly payment without consolidating?
Will I lose my repayment incentives on my current loans once I consolidate?
What benefits or incentives will I receive if I choose to consolidate?
Will the loan be sold if I decide to consolidate? To whom?
Who will service the loan if I decide to consolidate?
Note: Consolidation is a process conducted between you and your lender. FIU is not involved in the process. Please direct all your questions to your lender.
How Consolidation For School Loans Can Benefit You- Student Loan Consolidation
How Consolidation For School Loans Can Benefit You - Student Loan Consolidation
Some students end up not being able to pay back their loan after they graduate from college. They can be so overwhelmed with debt that paying back their school loan is the farthest thing from their mind. If this is how you're feeling, then the consolidation of school loans may be something to think about.
The consolidation of school loans means that you would put all of your loans together and make it as one loan. You would only have to make payments to one lender. The advantage of having one loan is that you can get in at a low interest rate. Consolidating school loans can also save you money as opposed to paying for more than one school loan. When you consolidate your loans, you are able to budget your expenses better.
There are a number of federal student loans that can be included for the consolidation of school loans. These loans have an advantage because you can get a lower monthly payment. Some of these federal loans include:
· Federal Direct Loans
· National Direct Student Loans
· Federal Stafford Loans
· PLUS Loans
· Loans for Disadvantaged Students
For the loan consolidation process, you have to qualify for the loan. You have to be out of school and currently not in any program. Every piece of information about you should be included in order to properly service the loan consolidation request for your school loans.
Check out different lenders to see which ones can meet your needs. Look at the terms and interest rates. On the upside, consolidation of school loans would make your payments lower by over 50 percent. On the downside, you may end up paying more in interest. Whoever you get as your lender, make sure that you read the fine print before you sign the application. Don't allow them to rush you through the process. If you have any questions, ask the lender prior to signing on the dotted line.
When you have been approved for the consolidation school loan, check everything for errors. Being locked into the rate that you wanted is very important. Get professional consultation if you find errors on your paperwork. You want to make sure that you can afford the monthly payments without having to go broke trying to pay them back.
The consolidation school loan can be expanded up to a period of about thirty years. If you really want to stick with a lower interest rate (who doesn't?) you can work on paying off the debt faster. This can help you to avoid those extra monthly payments.
Some students end up not being able to pay back their loan after they graduate from college. They can be so overwhelmed with debt that paying back their school loan is the farthest thing from their mind. If this is how you're feeling, then the consolidation of school loans may be something to think about.
The consolidation of school loans means that you would put all of your loans together and make it as one loan. You would only have to make payments to one lender. The advantage of having one loan is that you can get in at a low interest rate. Consolidating school loans can also save you money as opposed to paying for more than one school loan. When you consolidate your loans, you are able to budget your expenses better.
There are a number of federal student loans that can be included for the consolidation of school loans. These loans have an advantage because you can get a lower monthly payment. Some of these federal loans include:
· Federal Direct Loans
· National Direct Student Loans
· Federal Stafford Loans
· PLUS Loans
· Loans for Disadvantaged Students
For the loan consolidation process, you have to qualify for the loan. You have to be out of school and currently not in any program. Every piece of information about you should be included in order to properly service the loan consolidation request for your school loans.
Check out different lenders to see which ones can meet your needs. Look at the terms and interest rates. On the upside, consolidation of school loans would make your payments lower by over 50 percent. On the downside, you may end up paying more in interest. Whoever you get as your lender, make sure that you read the fine print before you sign the application. Don't allow them to rush you through the process. If you have any questions, ask the lender prior to signing on the dotted line.
When you have been approved for the consolidation school loan, check everything for errors. Being locked into the rate that you wanted is very important. Get professional consultation if you find errors on your paperwork. You want to make sure that you can afford the monthly payments without having to go broke trying to pay them back.
The consolidation school loan can be expanded up to a period of about thirty years. If you really want to stick with a lower interest rate (who doesn't?) you can work on paying off the debt faster. This can help you to avoid those extra monthly payments.
Loan Consolidation
Loan Consolidation
Many lenders are offering student consolidation loan rebate to the borrowers to st that they take their student loan from them. These discounts are offered because according to 'SINGLE HOLDER RULE', borrowers are allowed to merge their existing loans with any bank they wish to. The original lenders surely do not want to loose their customers and so they are offering really good discounts.
The main features of student loan consolidation are:
· Reduced interest rates · Waiver of last 6 months installment · Reduction in principal amount · Flexible payment options
All this rebate is offered on Stafford loans and plus loans. The most common discounts offered on student loan consolidation are:
1. 0.25% reduction in rate if your EMI gets debited from your account directly. 2. 1% waiver in default fee depending upon the guarantor for the loan. 3. Additional rebate on making timely payments. 4. 2% reduction in rate after completion of 48 months
Here is how you can get the best student loan consolidation rate:
1. The rate for student loan consolidation will depend on customer's credit and financial state of affairs. Do a complete research and development on the rebates offered by different lenders and see which one is the lowest.
2. Go for the lender who has multiple and flexible repayment options.
3. Your lender must keep the rate fixed through out the life of the student loan. Search online and compare different type of rates offered by different lenders.
4. With a student loan consolidation, look up for the facility of increment in tenure at a later stage of the loan. Check whether the bank has such scheme or not. With loan consolidation, you can actually low down the installment amount by increasing the life of the loan.
5. If there is an "in school" facility available. If so, get your loan rate freezed while you are in school only.
Many lenders are offering student consolidation loan rebate to the borrowers to st that they take their student loan from them. These discounts are offered because according to 'SINGLE HOLDER RULE', borrowers are allowed to merge their existing loans with any bank they wish to. The original lenders surely do not want to loose their customers and so they are offering really good discounts.
The main features of student loan consolidation are:
· Reduced interest rates · Waiver of last 6 months installment · Reduction in principal amount · Flexible payment options
All this rebate is offered on Stafford loans and plus loans. The most common discounts offered on student loan consolidation are:
1. 0.25% reduction in rate if your EMI gets debited from your account directly. 2. 1% waiver in default fee depending upon the guarantor for the loan. 3. Additional rebate on making timely payments. 4. 2% reduction in rate after completion of 48 months
Here is how you can get the best student loan consolidation rate:
1. The rate for student loan consolidation will depend on customer's credit and financial state of affairs. Do a complete research and development on the rebates offered by different lenders and see which one is the lowest.
2. Go for the lender who has multiple and flexible repayment options.
3. Your lender must keep the rate fixed through out the life of the student loan. Search online and compare different type of rates offered by different lenders.
4. With a student loan consolidation, look up for the facility of increment in tenure at a later stage of the loan. Check whether the bank has such scheme or not. With loan consolidation, you can actually low down the installment amount by increasing the life of the loan.
5. If there is an "in school" facility available. If so, get your loan rate freezed while you are in school only.
How Much Can Student Loan Consolidation Rates Rise
How Much Can Student Loan Consolidation Rates Rise ?
Student loan consolidation rates at this moment of time are quite high. Initial signs are that it will increase further in the coming years. Therefore, if you are interested in student loan consolidation it’s an ideal time to go for it. It is worth mentioning in this regard that even a slight increase in student loan consolidation rates can have a significant impact on your financial condition.
If your credit record is not up to the mark, it is recommended that you improve your credit situation first before applying for a student loan consolidation. By following this strategy, not only your loan application is going to be approved easily but also rates are not going to be high. When your student loan consolidation rates are low, you will face no difficulty in repaying the loan amount.
Another good thing about low rates is that it plays a prominent part in improving your credit situation. This is because of the simple reason that when the consolidation rate is low you will face no problem in paying monthly installments to the lender. This in turn will improve your credit score as well.
When your credit score gets good you can ask your lender to reduce rates. Lender will have no issues in lowering your rates because your credit record is excellent and you are not a risk to the lender. To start with, it is advisable that you open a saving account in the bank. Also keep a keen eye on the market situation. If there is a possibility of increase in rates, apply for student loan consolidation program immediately.
As student loan consolidation rates vary from one lender to another, it is quite pivotal that you shop around and compare rates from different lenders. It has been noticed that students with good credit record gets plenty of concession in the form of rates. On the other hand, if the credit record of student is not up to the mark, he will only get a loan at high interest rates.
Student loan consolidation rates at this moment of time are quite high. Initial signs are that it will increase further in the coming years. Therefore, if you are interested in student loan consolidation it’s an ideal time to go for it. It is worth mentioning in this regard that even a slight increase in student loan consolidation rates can have a significant impact on your financial condition.
If your credit record is not up to the mark, it is recommended that you improve your credit situation first before applying for a student loan consolidation. By following this strategy, not only your loan application is going to be approved easily but also rates are not going to be high. When your student loan consolidation rates are low, you will face no difficulty in repaying the loan amount.
Another good thing about low rates is that it plays a prominent part in improving your credit situation. This is because of the simple reason that when the consolidation rate is low you will face no problem in paying monthly installments to the lender. This in turn will improve your credit score as well.
When your credit score gets good you can ask your lender to reduce rates. Lender will have no issues in lowering your rates because your credit record is excellent and you are not a risk to the lender. To start with, it is advisable that you open a saving account in the bank. Also keep a keen eye on the market situation. If there is a possibility of increase in rates, apply for student loan consolidation program immediately.
As student loan consolidation rates vary from one lender to another, it is quite pivotal that you shop around and compare rates from different lenders. It has been noticed that students with good credit record gets plenty of concession in the form of rates. On the other hand, if the credit record of student is not up to the mark, he will only get a loan at high interest rates.
The Federal Student Loan Consolidation Program
The federal student loan consolidation program is an excellent way to manage student loan debt as well as save thousands of dollars in interest payments
Federal student loan consolidation is a free federal program that allows anyone with outstanding federal student loan debt to combine their loans, extend their repayment term, and lock in their interest rate.
The terms and conditions on all federal student loan consolidations are set by the U.S. Department of Education, meaning that all federal student loan consolidations are, at least initially, created equal. There are no prepayment penalties or fees, and every lender has to offer the same federal forbearance and deferment options and the same initial consolidated interest rate.
This rate is based on a weighted average of the interest rates of all the outstanding student loans rounded to the nearest 1/8th percent.
So, if every lender is offering the same federal terms and conditions, and every consolidated loan will have the same initial rate, what's the difference between consolidation lenders?
The difference between lenders is in the borrower benefits that are offered. These differences can be pretty substantial, and by asking the right questions, smart borrowers can get the best deal on their federal student consolidation loan.
Interest Rate Reductions
The most common benefit offered on a federal student loan consolidation is an interest rate reduction. This benefit is usually offered in two parts: a .25% reduction for auto debit and a 1% interest rate reduction after 36 months of on-time payments.
This is a great benefit that can greatly reduce the total amount of interest paid on the consolidated loan. On a $30,000 loan, this benefit alone can save a borrower over $6,500 in interest! Although this is an attractive benefit, there are a couple of things to ask your consolidation lender before proceeding with the loan:
1. Ask the lender if the benefit will lock in after you've made 36 months of on-time payments.
This means that, after the 1% interest rate reduction is awarded, the benefit can never be taken away, even if payments are made late in the future.
Most consolidation companies will add the 1% back in if any payment is late after the benefit has already been awarded. Many people don't worry about this, assuming that they will always make their payment on time.
However, most consolidation loans will take over 10 years to pay back and the odds are a payment will be late eventually. Clarify with the lender when a payment is considered late. Any reputable company should provide at least a 10-day grace period before a payment is considered late.
Remember, just because you have your payments set up to be auto-debited from a bank account doesn't mean they will always be on time. If there are insufficient funds in the bank account, the payment can be rejected and considered late.
2. Ask the lender if the on-time payments have to be consecutive to receive the interest rate reduction.
Many companies will take away the benefit if you put the loan into a forbearance or deferment. This can even include a deferment on payments if you decide to go back to school.
Reputable lenders will not take away your benefit for exercising your federal right to put your consolidation loan into a deferment or forbearance.
3. Ask the lender what will happen to the benefit if the loan is sold.
Regardless of what a lender tells you, many consolidation loans are sold.
Make sure that if your loan is sold, you will not lose your rate reductions. There are horror stories of borrowers making 30 on-time payments to find out that their consolidated loan had been sold to a new lender who will not honor the 1% rate reduction they were initially promised.
Cash Back Rebate
A relatively new benefit being touted by consolidation companies is the cash back rebate.
This is usually a percentage of the principal loan balance that is either applied to the outstanding loan or sent to the borrower as a cash payment. This can be a very attractive offer, especially when in the form of a cash payment to the borrower.
It's hard to resist a check for thousands of dollars, but when compared to the savings from the interest rate reductions, the cash back rebate is usually not the best financial discount.
For example:
One lender is offering a 1.25% rate reduction for on-time payments, and the other lender is offering a 3% cash back rebate on a $60,000 consolidated loan. The lender offering the cash back rebate will mail the borrower a check for $1,800 after they make 10 payments on time.
The other lender will give the 1% rate reduction after 3 years of on-time payments. The cash rebate sounds tempting, but when you realize that the 1.25% rate reduction could save over $32,000, it is clear the interest rate reduction is the superior benefit.
1. If you decide to go with a company offering the cash rebate option, make sure to read the fine print. Many companies require that a rebate form be submitted by a certain deadline to process the cash back benefit. If the cash back rebate form is not received, they will disqualify the borrower from the rebate.
2. Ask the lender what exactly is required to receive the cash back rebate before submitting a signed consolidation loan application. Many companies combine the cash back rebate with other borrower obligations. One company requires that a borrower enroll in their electronic newsletter with a valid email address before the rebate is awarded.
The federal student loan consolidation program is an excellent way to manage student loan debt as well as save thousands of dollars in interest payments. By asking the right questions and knowing what to look for, you can maximize your savings and make sure that you get the best deal possible on your consolidation loan.
Joe Elias is a partner in 4.0 Student Loans, a financial aid company that provides student loan information and consolidation for students and parents. For more information, visit: http://www.40studentloans.com/.© 2006 Joe Elias
Return to top
The views and opinions expressed in these articles do not necessarily reflect those of College Central Network, Inc. or its affiliates. Reference to any company, organization, product, or service does not constitute endorsement by College Central Network, Inc., its affiliates or associated companies. The information provided is not intended to replace the advice or guidance of your legal or medical professional.
Federal student loan consolidation is a free federal program that allows anyone with outstanding federal student loan debt to combine their loans, extend their repayment term, and lock in their interest rate.
The terms and conditions on all federal student loan consolidations are set by the U.S. Department of Education, meaning that all federal student loan consolidations are, at least initially, created equal. There are no prepayment penalties or fees, and every lender has to offer the same federal forbearance and deferment options and the same initial consolidated interest rate.
This rate is based on a weighted average of the interest rates of all the outstanding student loans rounded to the nearest 1/8th percent.
So, if every lender is offering the same federal terms and conditions, and every consolidated loan will have the same initial rate, what's the difference between consolidation lenders?
The difference between lenders is in the borrower benefits that are offered. These differences can be pretty substantial, and by asking the right questions, smart borrowers can get the best deal on their federal student consolidation loan.
Interest Rate Reductions
The most common benefit offered on a federal student loan consolidation is an interest rate reduction. This benefit is usually offered in two parts: a .25% reduction for auto debit and a 1% interest rate reduction after 36 months of on-time payments.
This is a great benefit that can greatly reduce the total amount of interest paid on the consolidated loan. On a $30,000 loan, this benefit alone can save a borrower over $6,500 in interest! Although this is an attractive benefit, there are a couple of things to ask your consolidation lender before proceeding with the loan:
1. Ask the lender if the benefit will lock in after you've made 36 months of on-time payments.
This means that, after the 1% interest rate reduction is awarded, the benefit can never be taken away, even if payments are made late in the future.
Most consolidation companies will add the 1% back in if any payment is late after the benefit has already been awarded. Many people don't worry about this, assuming that they will always make their payment on time.
However, most consolidation loans will take over 10 years to pay back and the odds are a payment will be late eventually. Clarify with the lender when a payment is considered late. Any reputable company should provide at least a 10-day grace period before a payment is considered late.
Remember, just because you have your payments set up to be auto-debited from a bank account doesn't mean they will always be on time. If there are insufficient funds in the bank account, the payment can be rejected and considered late.
2. Ask the lender if the on-time payments have to be consecutive to receive the interest rate reduction.
Many companies will take away the benefit if you put the loan into a forbearance or deferment. This can even include a deferment on payments if you decide to go back to school.
Reputable lenders will not take away your benefit for exercising your federal right to put your consolidation loan into a deferment or forbearance.
3. Ask the lender what will happen to the benefit if the loan is sold.
Regardless of what a lender tells you, many consolidation loans are sold.
Make sure that if your loan is sold, you will not lose your rate reductions. There are horror stories of borrowers making 30 on-time payments to find out that their consolidated loan had been sold to a new lender who will not honor the 1% rate reduction they were initially promised.
Cash Back Rebate
A relatively new benefit being touted by consolidation companies is the cash back rebate.
This is usually a percentage of the principal loan balance that is either applied to the outstanding loan or sent to the borrower as a cash payment. This can be a very attractive offer, especially when in the form of a cash payment to the borrower.
It's hard to resist a check for thousands of dollars, but when compared to the savings from the interest rate reductions, the cash back rebate is usually not the best financial discount.
For example:
One lender is offering a 1.25% rate reduction for on-time payments, and the other lender is offering a 3% cash back rebate on a $60,000 consolidated loan. The lender offering the cash back rebate will mail the borrower a check for $1,800 after they make 10 payments on time.
The other lender will give the 1% rate reduction after 3 years of on-time payments. The cash rebate sounds tempting, but when you realize that the 1.25% rate reduction could save over $32,000, it is clear the interest rate reduction is the superior benefit.
1. If you decide to go with a company offering the cash rebate option, make sure to read the fine print. Many companies require that a rebate form be submitted by a certain deadline to process the cash back benefit. If the cash back rebate form is not received, they will disqualify the borrower from the rebate.
2. Ask the lender what exactly is required to receive the cash back rebate before submitting a signed consolidation loan application. Many companies combine the cash back rebate with other borrower obligations. One company requires that a borrower enroll in their electronic newsletter with a valid email address before the rebate is awarded.
The federal student loan consolidation program is an excellent way to manage student loan debt as well as save thousands of dollars in interest payments. By asking the right questions and knowing what to look for, you can maximize your savings and make sure that you get the best deal possible on your consolidation loan.
Joe Elias is a partner in 4.0 Student Loans, a financial aid company that provides student loan information and consolidation for students and parents. For more information, visit: http://www.40studentloans.com/.© 2006 Joe Elias
Return to top
The views and opinions expressed in these articles do not necessarily reflect those of College Central Network, Inc. or its affiliates. Reference to any company, organization, product, or service does not constitute endorsement by College Central Network, Inc., its affiliates or associated companies. The information provided is not intended to replace the advice or guidance of your legal or medical professional.
Information Student Loan Consolidation Rebate
Information about Student Loan Consolidation Rebate
Student loan consolidation rebates are usually given by a private company when student loans are consolidated equaling more than $20,000. The more student loans consolidation, the higher the student loan consolidation rebate. This is usually a percentage of the principal loan balance that is either applied to the outstanding loan or sent to the borrower as a cash payment. This can be a very attractive offer, especially when in the form of a cash payment to the borrower.If you decide to go with a company offering the cash rebate option, make sure to read the fine print. Many companies require that a rebate form be submitted by a certain deadline to process the cash back benefit. If the cash back rebate form is not received, they will disqualify the borrower from the rebate.Ask the lender what exactly is required to receive the cash back rebate before submitting a signed consolidation loan application. Many companies combine the cash back rebate with other borrower obligations. One company requires that a borrower enroll in their electronic newsletter with a valid email address before the rebate is awarded.The federal student loan consolidation program is an excellent way to manage student loan debt as well as save thousands of dollars in interest payments. By asking the right questions and knowing what to look for, you can maximize your savings and make sure that you get the best deal possible on your consolidation loan.Student Loan Consolidation RebateTags: thousands of dollars, electronic newsletter, asking the right questions, interest payments, private company, loan application, rebates, consolidation loan, student loan consolidation, student loan debt, federal student loan, federal student loan consolidation, cash rebate, student loans consolidation
This article is free for republishingSource: http://www.articlealley.com/article_605100_5.html
Student loan consolidation rebates are usually given by a private company when student loans are consolidated equaling more than $20,000. The more student loans consolidation, the higher the student loan consolidation rebate. This is usually a percentage of the principal loan balance that is either applied to the outstanding loan or sent to the borrower as a cash payment. This can be a very attractive offer, especially when in the form of a cash payment to the borrower.If you decide to go with a company offering the cash rebate option, make sure to read the fine print. Many companies require that a rebate form be submitted by a certain deadline to process the cash back benefit. If the cash back rebate form is not received, they will disqualify the borrower from the rebate.Ask the lender what exactly is required to receive the cash back rebate before submitting a signed consolidation loan application. Many companies combine the cash back rebate with other borrower obligations. One company requires that a borrower enroll in their electronic newsletter with a valid email address before the rebate is awarded.The federal student loan consolidation program is an excellent way to manage student loan debt as well as save thousands of dollars in interest payments. By asking the right questions and knowing what to look for, you can maximize your savings and make sure that you get the best deal possible on your consolidation loan.Student Loan Consolidation RebateTags: thousands of dollars, electronic newsletter, asking the right questions, interest payments, private company, loan application, rebates, consolidation loan, student loan consolidation, student loan debt, federal student loan, federal student loan consolidation, cash rebate, student loans consolidation
This article is free for republishingSource: http://www.articlealley.com/article_605100_5.html
Consolidation Loan Discounts
Consolidation Loan Discounts
The following is a list of lenders that provide Consolidation Loans. It includes a basic comparison chart that highlights the loan discounts offered by each lender. Only consolidators that offer loan discounts are included in this list. More information about consolidation loans can be found in the consolidation loan and private consolidation loan sections of FinAid.
The lenders are listed in alphabetical order. No significance should be inferred from the order in which the lenders are listed.
Many lenders offer loan discounts to encourage borrowers to consolidate their loans with them. With the repeal of the single holder rule, borrowers now have a choice of consolidation lenders.
The most common loan discounts include a 0.25% interest rate reduction for having your monthly loan payments direct debited from your bank account and a 1% interest rate reduction after 36 months of on-time monthly payments for as long as you continue making on-time payments. (However, with the changes in lender subsidies introduced by College Cost Reduction and Access Act of 2007, many lenders are eliminating the 1% rate reduction after 36 months on new loans originated on or after October 1, 2007.)
Note, however, that if you are late with a single monthly payment or obtain a deferment or forbearance, you lose the interest rate reduction permanently. Less than 10% of borrowers succeed in obtaining the full benefit of an on-time payment discount. (Even borrowers who sign up for automatic direct debit of the monthly payments can miss a payment if they have insufficient funds in their account.)
We recommend focusing on the discounts that you can't lose, such as discounts for signing up for direct debit of the monthly payments. Next look for discounts that are more immediate in nature, such as those that offer a reduction in principal or a rebate of the loan fees. When a repayment incentive requires on-time payments, prefer those that involve a shorter time period before you can qualify for the discount. A discount that is suspended for a short time period after you are late with a payment is better than one that terminates after a single late payment.
Be sure to ask the lender whether there is a minimum balance to obtain the discounts. Often the discounts require a loan balance that is higher than the minimum balance required to consolidate. Also ask what is considered an "on-time" payment; usually this is within 10-15 days of the due date.
These lenders all reserve the right to change or discontinue their loan discount programs at any time without notice. You should always check the lender's web site for the latest information on their borrower benefit programs.
See Student Loan Discounts for other important caveats on the hidden gotchas of loan discount programs and tips on identifying the best loan discount programs.
The following is a list of lenders that provide Consolidation Loans. It includes a basic comparison chart that highlights the loan discounts offered by each lender. Only consolidators that offer loan discounts are included in this list. More information about consolidation loans can be found in the consolidation loan and private consolidation loan sections of FinAid.
The lenders are listed in alphabetical order. No significance should be inferred from the order in which the lenders are listed.
Many lenders offer loan discounts to encourage borrowers to consolidate their loans with them. With the repeal of the single holder rule, borrowers now have a choice of consolidation lenders.
The most common loan discounts include a 0.25% interest rate reduction for having your monthly loan payments direct debited from your bank account and a 1% interest rate reduction after 36 months of on-time monthly payments for as long as you continue making on-time payments. (However, with the changes in lender subsidies introduced by College Cost Reduction and Access Act of 2007, many lenders are eliminating the 1% rate reduction after 36 months on new loans originated on or after October 1, 2007.)
Note, however, that if you are late with a single monthly payment or obtain a deferment or forbearance, you lose the interest rate reduction permanently. Less than 10% of borrowers succeed in obtaining the full benefit of an on-time payment discount. (Even borrowers who sign up for automatic direct debit of the monthly payments can miss a payment if they have insufficient funds in their account.)
We recommend focusing on the discounts that you can't lose, such as discounts for signing up for direct debit of the monthly payments. Next look for discounts that are more immediate in nature, such as those that offer a reduction in principal or a rebate of the loan fees. When a repayment incentive requires on-time payments, prefer those that involve a shorter time period before you can qualify for the discount. A discount that is suspended for a short time period after you are late with a payment is better than one that terminates after a single late payment.
Be sure to ask the lender whether there is a minimum balance to obtain the discounts. Often the discounts require a loan balance that is higher than the minimum balance required to consolidate. Also ask what is considered an "on-time" payment; usually this is within 10-15 days of the due date.
These lenders all reserve the right to change or discontinue their loan discount programs at any time without notice. You should always check the lender's web site for the latest information on their borrower benefit programs.
See Student Loan Discounts for other important caveats on the hidden gotchas of loan discount programs and tips on identifying the best loan discount programs.
Rebate
Rebate
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.
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.
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