Consolidate student loans

Consolidating Your Student Loan

admin — Fri, 05 Feb 2010 17:12:35 +0000

Student loan consolidation is a very important move in your financial life. This is usually the first thing college graduates can do to move toward a solid financial future.

There are many programs offered today that can benefit recent graduates. When starting a new life after college most people carry the burden of debt straight out of school with them. This will sometimes lead to making bad financial decisions right out of the gate. These decisions can haunt you for years and if they cause you to get bad credit scores the problems can last decades. The best option is usually to consolidate your bills to achieve a lower monthly payment that will be manageable for your future.

This frees up cash on hand each month to put toward other bills such as rent and utilities. By consolidating your student loans into one lower monthly bill you will also be able create an effective budget that will set you the right path early in life. This path is critical to the quality of life you will enjoy your entire life. I know that most young people think they have plenty of time, but the decisions that are made during the first 5 years of your working career can have the most financial impact on your retirement.
As odd as it sounds consolidating your student loans is the first step in achieving the retirement lifestyle that you want and deserve. Take advantage of the many resources of the internet today and start to plan for tomorrow.

By: Tim Grimsley

Debt Consolidation – Consolidate Your Student Loans Now!

admin — Thu, 04 Feb 2010 20:04:02 +0000

The Federal student loan program has benefited thousands of college students in the forty years since it was introduced. Interest rates for the program have historically been quite competitive, and the program has allowed many people to acquire a college education who otherwise might not have been able to afford one.

At the moment, interest rates on Federal student loans are the lowest in history, but that is about to change. On July 1, 2005, the interest rates on Federal student loans will rise, due to an increase in the price of Treasury, bills, to which the interest rates on student loans are tied.

While an increase in interest rates is seldom viewed as a good thing, knowing about it ahead of can be helpful. Between now and June 30, new graduates or those who have been repaying existing loans can consolidate their student loans at current rates. The rates currently vary, with fixed rates being slightly higher than adjustable rates. Those considering consolidation might wish to convert their loan to a fixed rate. Depending on the amount of the loan, borrowers may extend their loan terms to as long as 30 years.

There is also legislation pending in Congress that would change the Federal loan system so that all future loans are adjustable rate, with no fixed rate option. This will save the government money by not allowing students to lock in long-term loans at low rates during times of increasing interest rates. Students who wish to obtain a fixed rate loan may not have much longer to do so.

Rates will vary slightly from lender to lender, and the market for loan consolidation is quite competitive. Those wishing to consolidate their loans should consider shopping around for the best deal while time permits.

By: Charles Essmeier

Smart Student Loan Consolidating

admin — Thu, 04 Feb 2010 11:03:35 +0000

Attending college is a fantastic experience. It’s a totally unique experience from high school, especially if your college has a large campus. There are many different activities that colleges offer students, far more than any high school can. Also many new people to meet, from all over the world. Going to college can be wonderful.

But it can be a pain too, if you have to pay for it. And if you needed to fund your tuition and other expenses with student loans, then it becomes really painful when you have to start paying those bills. Plus you have to pay the interest on what you borrowed too.

If you are in this fix, where you know your bills and interest will be too high, then there is one sensible idea to try. You can consolidate your student loans. Doing so will allow you to minimize your payments and significantly reduce your interest rate.

What often happens with college students who have taken out loans, is that they forget about them. It’s not hard to understand though, because college life can be so hectic. When diploma time comes, the loans are all but forgotten. That is, until the bills start coming in.

These same students also forget that they may have borrowed money from more than one lender. So after school they start getting bills from all over. And then life gets really hectic, keeping all the bills straight.

But to assist in this problem, students look to student loan debt consolidation. Then their monthly payments can be merged into one smaller monthly payment.

There are several loan consolidation services that can be found online. One such service is at NextStudent.com. They have a very informative website, and offer free one-on-one counseling, as well as low interest rates.

There are several student loan debt consolidation sites on the web. If you are in a bind with trying to pay your loans, then please do a search online right away, I’m sure you’ll find a service that will dramatically improve your financial circumstances.

By: Jim Konerko

Consolidate Debt Related to Student Loans

admin — Thu, 04 Feb 2010 06:10:00 +0000

Student loans are eligible for interest deductions on taxes. For example, the student loan interest deduction will allow you to take up to $2,500 as a deduction on any interest you paid on a student loan debt. Of course, the deduction is only good if you are actually using the loan to pay for a qualified program of higher education for yourself, your spouse, or your children – basically, anyone who can be listed as a dependent on your tax forms. To more easily identify the interest payments, consolidate debt related to student loans.

The tax deduction can be claimed if the money was used for college or vocational school related expenses including tuition, fees, books, equipment, room and board, transportation, and supplies. It cannot be claimed if someone else can claim the exemption, you are married filing separately, the loan was made by a relative, or in other limited instances.

Like any tax deduction that is based upon federal student loan monies, any costs you incur have to be reduced non-taxable distributions, other forms of assistance, and other non-taxable payments that were received for educational expenses. Because the world of finance can be confusing to the non-professional, if you have any doubt about whether or not your interest is deductible, you should check with the tax agency and/or a personal financial advisor. He can help you identify ways of managing money expenditures and tracking student related payments. It is hard to keep up with student loan and tax requirements, so you are better asking the professionals to help you on top of the ever changing rules. For example, in 2002 there was a change to the student loan program that discontinued the “first 60 months” requirement on interest paid, and made deductions for voluntary interest payments permissible as well as the required payments that were deductible from previous years. Tax forms were altered to allow the deductions to be taken from either Form 1040 or 1040.

Tax deductions related to school tuition benefits are a great benefit to families who want to help their children obtain higher education but simply cannot find sufficient funding. The costs associated with higher education are a big burden to anyone who incurs them, a tax break of this sort can offer a little bit of relief.

By: Jack B. Blacksmith

Consolidate Student Loans – Time To Pay Less And Get Your Student Debt In Line

admin — Thu, 04 Feb 2010 04:12:32 +0000

Let’s add some detail to the benefits available to graduates, parents or students who decide to consolidate the loans that have built up over the years of study.

The Consolidation of Student Loans Brings Reduced Payments

When a student gets all his or her loans under the same Social Security number, then the government will agree to consolidate those student loans. The student’s individual loans are paid off, giving the student one large loan.

Moreover, when the government takes steps to consolidate student loans, it also takes two other important steps: It extends the loan and it lowers the loan rate.

There is not set way by which a loan provider can bring down the rate on a consolidated loan. A reputable loan provider carefully examines all the possible ways that a student’s rate might be made lower.

The loan provider then establishes that low rate as the rate for a consolidated and extended loan.

The government’s willingness to both extend the loan and to lower the rate can save students considerable money. Although the payment schedule has been extended, the person with the consolidated loan can feel free to pay the loan off ahead of schedule.

In other words, there is no prepayment penalty levied on those who make an early pay-off after choosing to consolidate student loans.

Two More Reasons to Consolidate Student Loans

It was mentioned above that the rate on a consolidated loan is lower than the rate on each of the original loans. Besides being lower, that rate is also fixed. The rate on a Stafford or Perkins Loan is variable. The rate on a consolidated loan does not change during the course of the loan.

A student with a consolidated loan does not need to spend time keeping track of the payment schedule for two, three or more loans. That student loan recipient can just make a single monthly payment. Often the student elects to make that single payment through an automatic debit.

That can decrease the loan rate by another 0.25%.

Still Other Reasons to Consolidate Student Loans

Gradate students who consolidate student loans can learn then about fellowships and graduate school loans. Parents who consolidate their loans can search for free money or private loans. Those benefits come on top of the loan’s lower interest rate.

When you consolidate student loans, you provide yourself with a chance to improve your credit score. No graduate wants to face credit problems that have been caused by his or her need to take out loans in order to cover college expenses.

In light of all the above benefits, students should ask this question:

Who Can Qualify for the Program to Consolidate Student Loans?

Before allowing a student to consolidate student loans, the government looks to see if the student or graduate owes $10,500 or more. The government also checks to see if the loan recipient has any loans in default.

By: Martin Haworth

Should You Consolidate Your Student Loans?

admin — Wed, 03 Feb 2010 14:59:25 +0000

Spending time in college means going to classes, writing papers, studying for exams, and enjoying the college experience of fun, food, and frolic. Oh, if it only were that easy! Chances are you are racking up some serious debt in the form of students loans. If you have already graduated, then you are probably in the process of paying your loans back. Are you happy yet? Maybe not, especially if your student loans are more of a burden than you originally had expected. Read on, please, for some ways you can ease the burden and live a life that goes beyond paying off debt.

For many students, it isn’t all that uncommon to graduate with a bachelor’s degree and find yourself owing 10, 30, even 60 thousand dollars or more in student loan debt. How did all of this happen? High tuition, that’s how. Likely your first job out of college isn’t paying you a mint just yet either. Car payments and credit cards bills coupled with everyday living expenses can find you digging a whole that only gets deeper. What should you do? Perhaps you should consider looking into a government student loan consolidation.

So, just what is a government student loan consolidation? For starters, it is a type of a loan that allows you to take multiple student loans, pay them off, and make monthly payments to just one lender. For example, if you have three loans due to three different lenders at three different times of the month, you can keep better track of all of it if you had just one simple payment to make every month to one lender.

In addition, a government student loan consolidation may lower your interest rates, permit you to postpone your repayment schedule, and allow for you to take out some additional extra money to pay back other creditors including credit card providers.

Some things to keep in mind before you select a student loan consolidation include:

Amount Borrowed. Will the loan consolidation pay off all of your student loans, or just a percentage of what you owe? Your consolidator may want to see pay stubs and other proofs of income before approving your loan.

Annual Percentage Rate. Will the loan rate be fixed or will it be adjustable? You may want to lock in your rate to make sure that your monthly payments remain constant.

Your Loan Term. Can you deal with paying back a your government student loan consolidation for as long as twenty years? Take into consideration you may want to purchase a home, get married, start a family, buy a new car, etc. It can be difficult to anticipate the future, but will the loan saddle you with debt longer than necessary?

A student loan consolidation is definitely not for everyone. Make certain that you understand the terms of your agreement with the loan consolidator and sign nothing until you can have the contract reviewed independently. It is your life; weigh all of your options carefully.

By: Matthew Keegan

When Should You Consolidate Student Loans?

admin — Mon, 01 Feb 2010 10:05:48 +0000

If you have just graduated from college, the likelihood is that
you are under a large amount of debt in the form of student
loans. You might be wondering if there is any way to reduce the
amount you have to pay. One solution for reducing your
debt is to consolidate your student loans.

Student loan consolidation is similar to refinancing a house on
better terms: although the principal of the loan will not be affected,
the interest rates you can lock in when you consolidate student loans
to a fixed rate can be substantially better, reducing your monthly
payments by up to forty percent. Plus, you might be able to stretch
out your payment time to reduce your monthly payment amount
even further.

The disadvantage when you consolidate student loans during your
initial six-month grace period is that you must start making your
payments right away. This can be difficult if you have not found
a job after graduation, although you can wait until just before the
grace period ends to consolidate, and still receive the lower rates.
Furthermore, once you have consolidated your student loans, you
cannot un-consolidate them again, so make sure to consider your
choice carefully.

How is Interest Calculated When I Consolidate Student Loans?
When you consolidate student loans, your lending company pays off
your government loan and issues you a new loan under its own name.
The typical way to determine the interest rate on the new loan is to
take the average interest rates on all of the student loans, and offer
a new rate that is an eighth of a percentage point higher (up to a
maximum interest rate of 8.25%).

Although agreeing to a higher interest rate might not sound like a
good reason to consolidate student loans, this rate is fixed over
the life of the loan, whereas the government rates will fluctuate.
Since rates are at an all time low right now, locking in the current
rates might be a good idea.

Furthermore, many banks give you ways to bring down the
percentage rates. For example, some lending institutions will
drop the rate by as much as a quarter point if you agree to
automatic deductions from a checking or savings account, whereas
others drop the rates after a certain number of timely
payments. As an additional bonus, there is no penalty for paying
off your consolidated loan early.

When Would You *Not* Want to Consolidate Student Loans?
Before you decide to consolidate student loans, you should
carefully consider your alternatives. For example, did you
realize that it might be possible to have your student loan
cancelled altogether? Student loan forgiveness options include
volunteering, for the Peace Corps for example, or working for the
government in a low-income area as a teacher or
doctor. Cancellation is not possible, however, after you have
consolidated your student loans. If this kind of work
interests you and is available, it could be a better option than
loan consolidation.

Another time to hesitate before you choose to consolidate student
loans is when you are close to finishing your payments.
Stepping up the payments and saving yourself some interest and
the hassle of consolidation might be more advantageous
to you.

Finally, there are loans that you might want to keep open because
they offer special advantages. For example, if you are
considering going back to school and you have a Perkins loan, you
would not want to consolidate that with your other student loans.

The government will pay all interest on Perkins
loans while you are in school, but if you have chosen to
consolidate student loans, you will not be able to receive this
benefit. You could always choose to leave any special
kinds of loans out of the consolidation mix, however.

By: Mark Kessler

Will Consolidating My Student Loans Hurt My Credit?

admin — Thu, 28 Jan 2010 07:56:23 +0000

Many students are concerned whether consolidating their loans will affect their credit rating, and it does – in a positive way.

Credit agencies use several factors to determine your credit score, here are a couple that are affected by your student loans.

1. Number of open accounts: The number of creditors you have is one of the factors used – the more separate creditors you have the lower your score. Consolidation can increase your score by combining all of your separate lenders and reducing your open accounts to one.

2. Amount of monthly payments: The total amount of your minimum monthly payments is another factor in your score. Consolidating your student loans will lower your minimum monthly payment up to 60%, raising your credit score. For example, say you have three separate student loans all at the current rate of 6.8%. 1. $15000.00 minimum monthly payment $ 172.62 2. $20500.00 “ “ $ 235.91 3. $ 7500.00 “ “ $ 86.31 $43000.00 “ “ $ 494.84
Or: One Consolidated $43000.00 loan monthly payment $ 300.49

Monthly savings of $ 194.35 or 40%.
Lower payment = less monthly commitment = higher credit score.

3. Debt to credit ratio: The amount of available credit you have on any given credit line will also affect your score. A credit card with a $5000.00 limit that has $5000.00 in charges on it will give you a lower score than a credit card with a $10,000.00 limit that has $5000.00 in charges on it. Student loans are considered maxed out credit lines until you have made some payments so reducing the number of maxed out accounts will raise your credit score.

If you also have private (non-federal) student loans you are probably already aware that they should be consolidated separately but you may not be aware that your federal loans should be consolidated first. Since private loans interest rates are based on your credit rating consolidating your federal loans first and raising your credit score can help you get a better rate on your private loan consolidation. Generally when you take private loans out you are a young student with not much of a credit history and you aren’t always given the best rates. This makes the consolidation process that much more important. With proper timing federal and private student loan consolidations can save you money, raise your credit score, and reduce the amount of time it takes to repay your loans. It’s a winning situation all around!

By: Matt Kelly

Now Is the Time to Consolidate Student Loans!

admin — Thu, 28 Jan 2010 06:20:36 +0000

Now is the time to consolidate student loans. Time is running out for you to get some of the lowest rates available, because on July 1, 2008, the interest rate may jump two percentage points or more.

Waiting until June 30th is not going to help you, the time to act is NOW.

If you are still in school or are within the six-month grace period after your graduation, you are eligible to consolidate at a low rate of 2.875 percent.

This is a last chance opportunity for in-school students to consolidate loans, as the legislation is changing come July 1st.

If you have been out of school for some time, you might be able to consolidate for an interest rate of 3.37 percent, which is not too bad either.

Married couples have been enjoying spousal consolidation student loans. If you are married and have not considered consolidating your loans, you still can until the July 1st deadline.

Some lenders are offering a large carrot, if you agree to let them take your payment via your checking account (direct deposit transaction) on a monthly basis. That carrot could be a discount of up to 1.25 percentage points. The problem is you have to act now. If you are not motivated to move now and wait until June 30th or after the 1st of July, your rates will go up.

How much is up? Well the exact amount will not be known until sometime in June, but if you consider the price of everything else we are currently paying, expect it to be a good-sized jump.

Rumor has it that the in school/grace period rate will jump up to approximately 4.5 percent and the out-of-school rate will be as high as 5.2 percent and possibly higher.

What are you waiting for? Remember the lower rates will be for the life of your loan.

The Department of Education says that it is totally okay for students with loans from financial institutions, who are still in school to consolidate their loans before the July 1st deadline. In order to do that, you will have to ask your financial institution to put your loan into repayment and from there, you can consolidate. Once that is all done, you can then put in a request for an in-school deferment, this way you will not have to start making payments until after graduation.

If you have a direct loan from the Department of Education, you have always had the right to consolidate your loans while in school.

The upside to this is, you will have a much lower interest rate to pay back, and the down side is you will have to start making payments right after graduation, rather than having the six-month grace period.

This situation is good for juniors and seniors, as you have to have at least $7,500 in school loans in order to qualify for this program.

The important thing to do now is to check with your current lenders to see what loan options are available. If you have more than one lender, try shopping around for the best deal possible to consolidate your loans.

After July 1st you will be stuck with your current lender and will not have an opportunity to go to a different lender, unless your current lender does not off a consolidation loan with income sensitive repayment terms.

The time to act is now, and yes, it will take some effort, but the money you will save in the long run is worth the effort.

Remember “a bird in hand is worth two in the bush,” as my grandmother used to say.

Refinancing before July 1st gives you, the student, one last chance to lock in low interest rates and take advantage of other soon-to-be cut money saving opportunities and programs.

What are you waiting for?

By: Audrey Frederick

How To Consolidate Graduate Student Loan

admin — Tue, 26 Jan 2010 02:21:56 +0000

Graduate student loans provides students with a combined feature of loans which helps in debt consolidation and maintaining a positive credit history. Students with a poor credit history are often not able to get loans that will enable them to get financial help for furthering their studies. But with student loan consolidation, students that are aspiring to get a loan only for their graduate studies can do so by examining the APR, loan protection and collateral.

Getting A Good Consolidate Graduate Student Loan

Aspiring graduates look for a student loan, which enables them to get a loan that will provide the flexibility of paying the interest and at the same time enable them to finance their education further. Some of the features that students should look into include the following:

- Collateral: Before applying for collateral, it is essential that one have the information as to the collateral that he is going to use. The best collateral will be one, which is high in value such as a house or home equity. These types of collateral would be the most adequate so that if one defaults the lender will be able to sell the collateral.

- Lender: The next crucial step is to find the lender who will enable you to get the best loan at the lowest interest rates. The best lenders that students can contact are available online. Students should choose from a variety of lenders, which will enable them to assess the best loan provider.

- Application: Students can apply online through their credit cards to get the best loan amount. However before registering for a loan, it is necessary that you read the terms and conditions of the loan amount that you are going to get.

Consolidate graduate student loan has enabled students to get the best financial help with the lowest interest amounts. By combining the features of other loans, students are able to get the most flexible loans.

By: Ricky Lim