Student loan consolodation: Nowadays, the cost of higher education is getting more and more expensive. Some families may not be able to afford to send their son or daughter for further education. Getting a student loan will help.
There are 2 broad categories of student loans available. Government student loans and private student loans
Government or federal student loans are funded and administered by the US Department Of Education. It is classified under Federal Student Loans Aid Program. They have very few requirements other than you are studying in a US college or university. International students may also apply though approval is on a case by case basis.
Every year, the student loan aid program disburse nearly 60 billion dollars so it is a good choice for get a student loan from the government. Thus the interest rates are pretty low.
Private student loans are funded and administered by banks and other financial institutions. These lenders provide student loans at a higher interest rate compared to federal student loans. Some common student loans available are from Citibank and Sallie Mae
You are allowed to apply for both private and federal student loans for your education needs although I would not recommend it.
For some students who have a few student loans to repay concurrently, it can be a financial drain on their family finances. That is where student loan consolidation comes in.
Student loan consolidation basically consolidates all your student loans into one loan so that it is easier to manage and make payments. When you are getting a student loan consolidation whether from the government or the private market, your existing student loans are paid for and erased by the student loan consolidation lender. The balances are transferred to the new student loan consolidation. Thus you start a new loan and only needs to make a single payment each month.
There are many advantages to using student loan consolidation. The interest rates will be lower since it takes the average interest rates of your previous student loans. Thus due to government legislation, the maximum interest rate cannot be higher than 8.25 percent.
It becomes a lot easier to manage a single student loan and payment are easier. The repayment options are quite flexible. For federal student loan consolidation, you can opt to start repaying after you have graduated from school. There are also several other options.
Another beneficial side-effect of student loan consolidation is that it can also improves your credit score. Since you are effectively clearing all your old student loans and taking a new one, your credit score will increase and is important if plan to take other types of loans in the future.
Saturday, July 25, 2009
Sunday, July 19, 2009
Student loan consolidation interest rates - Instruction For Students to Get Loan Consolidation Rates
Student loan consolidation interest rates: Do you have a large sum of different students loans, and are slowly going crazy trying to remember when they are all due and how much you are required to pay? If so, then consolidating your student loans into one loan will make your life very much easier and smoother. A student loan consolidation will allow students to combine all of their student loans into a consolidated one. Consolidating student loans can help they deal with your budget and minimizer their monthly payment as well. Nevertheless, before you sign a loan contract, make sure you shop around for the best interest rate you can have.
Finding student loan consolidation rates may take them a bit time for research. Luckily, they can be easily found on the internet as there is much information of this matter online. You are able to calculate an estimate of your loan consolidation rate. Loan consolidation rates are available for almost types of federal student loans. Furthermore, consolidating private student loans can be done.
In order to help students to get loan consolidation rates, we want to the following four steps.
The first thing to do is recording student loan debt and rate. You should gather information on all of your loan debts, and then find the rate for each of them. Moreover, you had better write down the total loan debt sum and rate.
Secondly, calculate the consolidation rates. Remember to calculate the weighted average of the debt interest rates on the loans you will consolidate into one loan debt. Multiply each loan debt amount by its student loan rate. Then add the totals together. Don't you forget to split this number by your total loan debt amount. Round this number up to the nearest 1/8 of a percent as this will be your estimate of your rate.
As primary as the two stated steps above, the third one you should get is to find the best consolidation payment. Best consolidation help lessen your monthly payments and help you lock in one low interest rate until you pay off you loan. Profitably, it does not have loan fees or early payment punishments.
Lastly, search for the resources as good student guide to financial assistance and consolidation rates, current interest rates from chase for student loan consolidation, student consolidation interest rates and fees and Federal student aid - student loan consolidation for current interest rates information.
Finding student loan consolidation rates may take them a bit time for research. Luckily, they can be easily found on the internet as there is much information of this matter online. You are able to calculate an estimate of your loan consolidation rate. Loan consolidation rates are available for almost types of federal student loans. Furthermore, consolidating private student loans can be done.
In order to help students to get loan consolidation rates, we want to the following four steps.
The first thing to do is recording student loan debt and rate. You should gather information on all of your loan debts, and then find the rate for each of them. Moreover, you had better write down the total loan debt sum and rate.
Secondly, calculate the consolidation rates. Remember to calculate the weighted average of the debt interest rates on the loans you will consolidate into one loan debt. Multiply each loan debt amount by its student loan rate. Then add the totals together. Don't you forget to split this number by your total loan debt amount. Round this number up to the nearest 1/8 of a percent as this will be your estimate of your rate.
As primary as the two stated steps above, the third one you should get is to find the best consolidation payment. Best consolidation help lessen your monthly payments and help you lock in one low interest rate until you pay off you loan. Profitably, it does not have loan fees or early payment punishments.
Lastly, search for the resources as good student guide to financial assistance and consolidation rates, current interest rates from chase for student loan consolidation, student consolidation interest rates and fees and Federal student aid - student loan consolidation for current interest rates information.
Tuesday, July 14, 2009
Student loan consolidation comparison - Importance Of Student Loan Consolidation Comparison
Student loan consolidation comparison: With the rising education cost, it has become necessary for students to take loans. A student tends to take loans from various sources, which leads to payment of high installments on a monthly basis. A student takes a lot of time to make high interest payments, which affects his focus on academics. In such a case, a comparison of student loan consolidation.
What Is Student Loan Consolidation?
Student loan consolidation combines all the student loans into a single loan. As a result, the student is required to pay a single monthly installment at a low interest rate. Also, no extra charges are to be paid, and the combined interest rate is much lower than previous loans.
Since there are various financial institutions providing student loan consolidation comparison is important to get the best deal. The apt time to go in for student consolidation is the grace period as you can get the loan at a low rate. This is necessary as the interest rates provided by different institutions are different. Moreover, the time period to repay the loan is around 10 to 30 years in case of government student consolidation loan.
It is advisable that you makes timely payments as money paid over a long time can ultimately add up to one's cost. The interest rate in the market is presently low. Thus, it is the right time to go in for student loan consolidation.
According to some college analysis data, almost 50% of students at graduate level took student loans of $10,000 in 2006. Previously interest rates were over 6%, which made it difficult for students to carry on with their studies without worrying about their repayment. However, it is currently affordable hovering around 3%. Student loan consolidation has thus become a necessity to carry on with stress free studies.
What Is Student Loan Consolidation?
Student loan consolidation combines all the student loans into a single loan. As a result, the student is required to pay a single monthly installment at a low interest rate. Also, no extra charges are to be paid, and the combined interest rate is much lower than previous loans.
Since there are various financial institutions providing student loan consolidation comparison is important to get the best deal. The apt time to go in for student consolidation is the grace period as you can get the loan at a low rate. This is necessary as the interest rates provided by different institutions are different. Moreover, the time period to repay the loan is around 10 to 30 years in case of government student consolidation loan.
It is advisable that you makes timely payments as money paid over a long time can ultimately add up to one's cost. The interest rate in the market is presently low. Thus, it is the right time to go in for student loan consolidation.
According to some college analysis data, almost 50% of students at graduate level took student loans of $10,000 in 2006. Previously interest rates were over 6%, which made it difficult for students to carry on with their studies without worrying about their repayment. However, it is currently affordable hovering around 3%. Student loan consolidation has thus become a necessity to carry on with stress free studies.
Sunday, July 12, 2009
Private loans consolidation - A Student Loans Consolidation Service That Makes Dreams Come True
Private loans consolidation: It is believed that for one to have a better career in the future, he should have a good education. That is the very reason why people do everything just to get through college, even if it means you've got to 'invest' a lot of money for that. However, what if you run out of cash to pay for your school expenses (books, dorm, tuition fee and other school payables)? Would that mean you need to quit college? When one runs out of cash quitting school is never the answer. There are various student loans consolidation services that would help you resolve your cash problem. Consolidating is bundling all your other school loans into just one monthly payment. You can choose from the federal loans consolidation and private loans consolidation. Here's how each loan works.
The Federal loan consolidation is a fixed-rate refinancing that combines all your existing federal loans into just one new loan. Or in other words it is the best way to simplify your monthly payments. There are no credit checks and application fee or charges when you apply. The standard ten-year repayment term would be lengthened thus, allowing you to have spare money for all the other expenses like house rents, car payments and all the other necessities in life.
If you decide to combine your federal loan, you have several repayment options to choose from. Check which you consider best suits you. A borrower may choose from equal payment, graduated payment, extended payment and income-sensitive payment plan.
Another type of loan consolidation is the private student loan consolidation. This kind of loan will help you cut your monthly payment by almost half in the first year by combining all your existing private student loans debt. No application fees required and there are no prepayment penalties as well. When you choose to get this kind of loan, a co-signer would help you get a better chance for approval or a lower interest rate, though it is not required. Your loan could still get approved without having a co-signer. A co-signer need not worry because he can be released or freed from the liability after a borrower's forty-eight months on-time payments. Remember though those federal loan debts cannot be combined with private loans because each has different terms and conditions. Another good thing about this is that instead of the traditional twenty-year repayment term, the payment had been extended giving a borrower a maximum of thirty years giving you a lower monthly payment. Few more reasons why this kind of consolidation is recommendable is that an interest-only payment is available for the first twenty-four months of repayment and that the interest payments may be tax deductible.
Now, you can enjoy your college life having no worries about your school fees because there is a student loans consolidation service that can provide you the cash you need to get through your college education. Choose the consolidation and repayment scheme that you believe you can manage. Now, you can dream bigger!
Peter Barlow is a finance specialist and has written many loan related articles to help people get the loan they need at the rates they want.
The Federal loan consolidation is a fixed-rate refinancing that combines all your existing federal loans into just one new loan. Or in other words it is the best way to simplify your monthly payments. There are no credit checks and application fee or charges when you apply. The standard ten-year repayment term would be lengthened thus, allowing you to have spare money for all the other expenses like house rents, car payments and all the other necessities in life.
If you decide to combine your federal loan, you have several repayment options to choose from. Check which you consider best suits you. A borrower may choose from equal payment, graduated payment, extended payment and income-sensitive payment plan.
Another type of loan consolidation is the private student loan consolidation. This kind of loan will help you cut your monthly payment by almost half in the first year by combining all your existing private student loans debt. No application fees required and there are no prepayment penalties as well. When you choose to get this kind of loan, a co-signer would help you get a better chance for approval or a lower interest rate, though it is not required. Your loan could still get approved without having a co-signer. A co-signer need not worry because he can be released or freed from the liability after a borrower's forty-eight months on-time payments. Remember though those federal loan debts cannot be combined with private loans because each has different terms and conditions. Another good thing about this is that instead of the traditional twenty-year repayment term, the payment had been extended giving a borrower a maximum of thirty years giving you a lower monthly payment. Few more reasons why this kind of consolidation is recommendable is that an interest-only payment is available for the first twenty-four months of repayment and that the interest payments may be tax deductible.
Now, you can enjoy your college life having no worries about your school fees because there is a student loans consolidation service that can provide you the cash you need to get through your college education. Choose the consolidation and repayment scheme that you believe you can manage. Now, you can dream bigger!
Peter Barlow is a finance specialist and has written many loan related articles to help people get the loan they need at the rates they want.
Tuesday, July 7, 2009
Private educational loan consolidation - Student Loan Consolidation Interest Rate
Private educational loan consolidation: When you are consolidating your student loan, what is the first thing that goes to your mind? A lot of you might say it is the interest rate. There is nothing wrong with that, in fact, as a consumer, you deserve the best interest rate when you are consolidating your loans. So, below are some tips to help you to get the best interest rate.
1. Credit
The easiest way for you to earn the best rate is to have a credit score of at least 660.
2. Other criteria
However, there are also other factors involve which can affect your interest rate such as your family size, the loans you are holding, future career, annual income and co-signer credit history (only needed when you are going for private student loan consolidation).
Let's take a look at the income contingent repayment (ICR) plan. In this plan, your minimum monthly payment is just $5 and this amount shouldn't be much of the trouble for most of you. However, you can only qualify for this plan when you have a family and you are a direct loan borrower. So, you see, there are much more involved than credit score when you are talking about the rate for your student loan consolidation.
3. Amount and period
The more loans you consolidate and the longer your loan period, the better rate you can get. However, this is not something worth cheering of. Although you can enjoy low rate, you are actually paying more at the end of your extended loan period.
4. Federal or private
As you probably know, federal loan consolidation doesn't care what your credit score is, it merely locks in the lowest rate for the whole loan period. Since the interest rate for federal government student loan consolidation is review at July, 1 every year, it is best that you consolidate your student loans after that.
Although private student loan consolidation rate can fluctuate with the market rate, this means that you can negotiate your interest rate with the private loan consolidators. You can even enjoy lower rate when you and your co-signer credit history are good. Besides that, private loan consolidators also offer various discounts and incentive so that you can save some money even you are not eligible for fixed interest rate.
5. Online services
Speaking of discounts and incentives, more and more loan agencies are willing to give you a better student loan consolidation interest rate when you adopt their online services.
And to minimize long hauling discussions, a lot of loan agencies are starting to display their repayment package and rate online. This can save you a lot of time when you are researching which loan institution to go to.
1. Credit
The easiest way for you to earn the best rate is to have a credit score of at least 660.
2. Other criteria
However, there are also other factors involve which can affect your interest rate such as your family size, the loans you are holding, future career, annual income and co-signer credit history (only needed when you are going for private student loan consolidation).
Let's take a look at the income contingent repayment (ICR) plan. In this plan, your minimum monthly payment is just $5 and this amount shouldn't be much of the trouble for most of you. However, you can only qualify for this plan when you have a family and you are a direct loan borrower. So, you see, there are much more involved than credit score when you are talking about the rate for your student loan consolidation.
3. Amount and period
The more loans you consolidate and the longer your loan period, the better rate you can get. However, this is not something worth cheering of. Although you can enjoy low rate, you are actually paying more at the end of your extended loan period.
4. Federal or private
As you probably know, federal loan consolidation doesn't care what your credit score is, it merely locks in the lowest rate for the whole loan period. Since the interest rate for federal government student loan consolidation is review at July, 1 every year, it is best that you consolidate your student loans after that.
Although private student loan consolidation rate can fluctuate with the market rate, this means that you can negotiate your interest rate with the private loan consolidators. You can even enjoy lower rate when you and your co-signer credit history are good. Besides that, private loan consolidators also offer various discounts and incentive so that you can save some money even you are not eligible for fixed interest rate.
5. Online services
Speaking of discounts and incentives, more and more loan agencies are willing to give you a better student loan consolidation interest rate when you adopt their online services.
And to minimize long hauling discussions, a lot of loan agencies are starting to display their repayment package and rate online. This can save you a lot of time when you are researching which loan institution to go to.
Monday, July 6, 2009
Private college loan consolidation - Surviving Private College Loan Debt With Consolidation
Private college loan consolidation: The cost of a private college education today can rival the cost of a home. And if you graduate from a private college with you diploma buried beneath a mountain of debt, you may be wondering just how long it will take to see any financial benefits from your four years of hard work. After your monthly private college loan payments, there may be barely enough left for the rent, utilities, food, and car payments, never mind the occasional R&R.
Benefits Of Consolidation
But paying back you r private college need not be a cause of financial stress, if you can consolidate it. Private college loan consolidation will relieve you of numerous monthly payments and can also lower your interest rates. You’ll save both time and money, because your private college loan consolidation will take all your student loans and combine them into a single one, leaving you with one monthly payment so that you can budget much more easily. But as with all loans, there are some rules regarding private college loan consolidations.
Consolidation Repayment Options
If your private college loans are courtesy of the Federal government, you will get a more favorable interest rate by arranging a consolidation either while you are enrolled in school or in the six-moth grace period immediately after you graduate. And you will be given four repayment options from which to choose.
* You may ask for a fixed monthly payment over a maximum of ten years;
* You may ask for a fixed monthly payment over an extended period, and the term you are allowed will depend on the amount of your private school loan consolidation but it can between twelve and thirty years;
* You may ask for a graduated repayment plan which will fix your monthly payment for twenty-four months and then increase them in twenty-four month increments, as your income is hopefully rising. A graduate repayment loan can be set for between twelve and thirty years;
* Finally, you may ask for an income contingent repayment plan, with a monthly payment based on the amount of your debt, your adjusted gross income, and the number of people in your family. This repayment plan can extend for twenty-five years.
You can also request a change in repayment plans as your circumstances require.
If your private school loans were federally subsidized Stafford loans, the government will make your interest payments as long as you remain in school, even if you choose to consolidate. If, on the other hand, your private school loans are Perkins loans, you can’t consolidate unless you combine them with at leas one direct of FELP loan.
Benefits Of Consolidation
But paying back you r private college need not be a cause of financial stress, if you can consolidate it. Private college loan consolidation will relieve you of numerous monthly payments and can also lower your interest rates. You’ll save both time and money, because your private college loan consolidation will take all your student loans and combine them into a single one, leaving you with one monthly payment so that you can budget much more easily. But as with all loans, there are some rules regarding private college loan consolidations.
Consolidation Repayment Options
If your private college loans are courtesy of the Federal government, you will get a more favorable interest rate by arranging a consolidation either while you are enrolled in school or in the six-moth grace period immediately after you graduate. And you will be given four repayment options from which to choose.
* You may ask for a fixed monthly payment over a maximum of ten years;
* You may ask for a fixed monthly payment over an extended period, and the term you are allowed will depend on the amount of your private school loan consolidation but it can between twelve and thirty years;
* You may ask for a graduated repayment plan which will fix your monthly payment for twenty-four months and then increase them in twenty-four month increments, as your income is hopefully rising. A graduate repayment loan can be set for between twelve and thirty years;
* Finally, you may ask for an income contingent repayment plan, with a monthly payment based on the amount of your debt, your adjusted gross income, and the number of people in your family. This repayment plan can extend for twenty-five years.
You can also request a change in repayment plans as your circumstances require.
If your private school loans were federally subsidized Stafford loans, the government will make your interest payments as long as you remain in school, even if you choose to consolidate. If, on the other hand, your private school loans are Perkins loans, you can’t consolidate unless you combine them with at leas one direct of FELP loan.
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