Wednesday, 29 December 2010

Student Loan - 6 Ways To Get Your Student Loan Out of Default Status

Ever wonder how many days you could be late on your student loan payment before you are considered in default status. Well, you are considered in default once your payment is 270 days behind. Once this takes place, the lending institution can come after you with the power of the government. The entire balance of the loan will become due. You will not be eligible for a deferment or forbearance. There is no statute of limitation on collections. You can't discharge the loan in bankruptcy. You can't get further loans. The school may withhold your transcripts, and your tax refund will be intercepted. Your wages can be garnished. Your credit report will be damaged, collection fees will be added to your balance, liens can be placed on your personal and real property, and your bank accounts and other assets can be seized.

How do I get out of default status?

  • Ask the lender for a payment plan based on your income.
  • Try to get into the loan rehabilitation program. With this plan, you make 12 on time payments, and then a new lender will buy your loan providing you with a fresh payment plan and a lower monthly payment.
  • Consolidate all of your defaulted loans. You will get a better interest rate and payment plan under a different lender.
  • Settle your balance by seeking a compromise with the lender.
  • File for bankruptcy after proving undue hardship. You must show that your present income is too low to pay the loan, and there are various steps you must take to prove your case.
  • File a Chapter 13, and your interest, collection attempts, wage garnishments, and tax refund interception will stop while you are paying back your loan.

As you can see defaulted on your student loan could have a tremendous negative effect on your personal and financial life. When you are in default status, most lenders will assist you with bringing your account current. However, you have to take action and use one of the above techniques that fits your situation.

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Tuesday, 21 December 2010

Consolidate Student Loan Debt: A Student Loan Debtor's Perfect Solution

Anyone who has been in a situation of trying to get from under debt probably knows there is no "perfect" solution to that dilemma any more than there is a perfect solution to a student loan debtor's dilemma. The best that can be hoped for is to find a consolidation loan that will allow the former student to enjoy a standard of life based on his or her degree and still be able to repay the numerous student loans that were required to finance that education.

That being said, you need to understand the term "student loan consolidation," which, like any other consolidation, means you take your debt and combine it into one, lower, easy monthly payment. The difference is that only student loans are qualified for a student loan consolidation; that means you can't pay off your credit cards, car, or furniture with a student loan consolidation.

Several different programs exist that allow students to consolidate student loans, but the best seems to be the Federal Student Loan Consolidation program. First, it has the lowest interest, varying from 1.5% to approximately 4.5% with payment terms of ten to twenty years. Depending on the amount of loans you have outstanding, taking a Federal Student Loan Consolidation can reduce your payments as much as 50% a month. Additionally, these loans do not require income verification or credit reports, so those who have just begun a new job or will soon and have bad or no-credit still qualify to consolidate their student loans.

Of course, there are other student loan consolidation programs available including the Direct Student Loan Consolidation, which requires a borrower to have at least one Direct Student Loan, a verifiable income, and no adverse credit to qualify. Another type is the Private Student Loan Consolidation, which, though not as attractive as the Federal Student Loan Consolidation, is feasible for the former student who is set in a job and has a means of support. These loans run for up to twenty, sometimes thirty years, depending on the lender. Though a somewhat higher interest rate averaging from 6-10%, they are still more attractive than the average consumer loan and allow the borrower to get from under his or her student loans and begin life as a tax-paying citizen.

A student just graduating from college feels overwhelmed, wondering how he is ever going to have any kind of a life with the payments on those student loans hanging over his head. Student Loan Consolidation Loans help ease the stress and worry over those loans and gives the student a chance to begin his new life within the scope of his chosen field. It means he or she can buy a car, rent an apartment or buy a house, and obtain financing for furniture and still be able to afford to make payments on all of those student loans. It may be a little difficult at first until the expected income starts coming in, but at least there is a future that will allow much of the stress to be lifted.

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Thursday, 16 December 2010

Compare Student Loan Consolidation Programs

Many students and parents cannot afford the rising costs of a higher education. Majority of these students have multiple student loans. These loans belong to different creditors. These creditors have different terms of agreement, interest rates and billing cycles. The loan allows students to have these loans turned into one new loan. This new loan would be handled by one creditor.

When students consider choosing a loan consolidation creditor they need to consider the creditor's requirements, terms of agreement, interest rates and benefits. Student loan consolidation has two methods; these are Federal and Private loan consolidation. Most private creditors advise you to first apply for a Federal student loan consolidation to maximize federal benefits.

Federal loan is when the U.S. Government or the U.S. Department of Education is the creditor. Federal student loan consolidations are specifically created for low-income students and parents. There are two programs available for Federal Loan Consolidation: Federal Family Education Loan Program (FFELP) and Federal Direct Student Loan Program (FDLP). These programs consolidate federal loans including Stafford Loans, Federal Perkins Loans and PLUS Loans.

For a student to be eligible for federal loan consolidation the following would be checked or required:

- Credit history would be checked.
- A student would need to be a U.S Citizen or a permanent resident.
- The student must be either a full or half-time student.

Federal loan limits are set by Congress. These are the limits as follows:

- Year 1: $2,625
- Year 2: $3,500
- Years 3 & 4: $5,500
- Graduate $8,500

Ten years is the standard repayment period. This period can be extended up to 25 years for students with a $30,000 debt. Federal loan consolidation has a standard formula for interest rates. The interest rate is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.

Private Student loan Consolidation is when a private company or creditor combines multiple private loans into one new loan. This creditor handles the loans, allowing the student to pay for one loan to one creditor. To name a few of these creditors are NextStudent, Chase and EdFed. For private creditors, requirements are based on each company's standard or requirements. Credit qualification may vary as well if there is a co-signer.

Requirements would commonly be:

- The student must be enrolled at least half-time at a 4 or 5 year college or university.
- The student must be the age of majority in his/her state.
- He/she must be working on their undergraduate or graduate degree.
- There is no income requirement.
- Co-signers are not required to provide proof of income.

The interest rate for private loan consolidation is set by the creditor. Interest rates will be based on the student's credit history. The cost would be relatively low if the student and the co-signer's credit are approved. The graduate has six months after graduation before being required to start repayment. The standard term would be 15 years.

Tag : student loans,consolidate student loans,private student loans,best student loans

Sunday, 5 December 2010

Student Loan Repayment Tips - 8 Tips to Keep Your Loan Under Control

The very best way to manage debt is to be debt-free, yet that is easier said than done in today's economy. However, when it comes to paying for your college education, acquiring debt or student loans to afford the tuition cannot be avoided for many students.

In planning for the successful repayment of your student loan many things must be taken into consideration. To get ahead of the game you should plan to repay the loan before you sign the first promissory note. In a perfect world this might be the case, quite the contrary most student do not consider repayment until after they have graduated from college and land their first job.
Here are some suggested tips to help you make plans to deal with your student loan effectively to ensure repayment success.

Tip #1: You Do the Leg Work
All loans are not equally created. Some loans offer repayment incentives while you are still attending college; this bonus in some cases can be extended even after you have graduated. On the other hand, there are loans that provide no such stipend and the loans are due shortly after you have graduated college. For example, the Federal Family Education Loan Program (FFELP) loan charges a 3% loan origination fee; one stimulus is the proposal to pay this fee for students. The student in-turn has more money to off-set the cost for books, school supplies and living expenses.

An example of the incentive after graduation would be the fact that you could qualify for reduced interest rates. Also, should a student want to repay the loan through an automatic withdrawal system, like payroll deduction, for example, the probability of receiving this incentive is even greater? As you can see, there are notable differences in each student loan; that is why it is necessary to ensure that you have a thorough understanding of what each loan offer; and choose the one that provides the best incentives.

Tip #2: Read Your Mail
Typically, student borrowers get tons of information concerning the student loan. The student receives mail, normally, immediately prior to, throughout and following graduation from college. Consequently, it is crucial that you read through the entire stack of mail carefully. Therefore, if you have concerns, or there is information you do not understand; by knowing what is going on now you can get the problem resolved right away. Remember, it is necessary to ask if things are not clear, don't ignore the mail or you might miss out on a critical deadline or important information you need to act on concerning the loans.

Tip #3: Organize that Mountain of Paperwork
Save all of your student loan paperwork and correspondences, as soon as you get it in the mail in the mail. That way, you are going to know exactly what you agreed to, what is expected from you at loan repayment, and also to remind you how much you have borrowed, which is extremely important. It is interesting how signing the promissory note for your loan is so exciting, repaying the loan seems far away, but only for a while. Four years of college pass by quicker than you think. Before you know it, you are graduating, and the student loan repayment is glaring you in the face.

Organization and having the ability to put your fingertips on the loan paperwork will assist in alleviating a lot of the panic. To make things easy for you, begin by establishing a good, easy to use, record-keeping system in which you are able to keep your student loan paperwork and correspondence. The bookstores and libraries have books and software products on personal finance and organization that will help you get going. No matter what filing system you choose, whether document folders, binders, portfolios, or envelopes, create one file for each loan or account you have, and keep your items categorized appropriately. Additionally, while organizing your record-keeping system, make sure that it is safe. The record-keeping system should be kept free from thieves or fire. A number of professionals also recommend that you need to keep your student loan documents and correspondences until they are all totally paid off. This is what you need to keep a record of.

*Essential paperwork like your college student loan applications, promissory notes, disbursement and disclosure statements, and also loan transfer notices. * Copies of all correspondences concerning your student loan company and/or servicing company, such as your school's financial aid office. * Contact and phone number of the loan provider.

Tip #4: Be Present at all Required Entrance and Exit Sessions
When you take out a student loan, you will have to complete the student loan counseling sessions. Some schools give this on-line and the sessions will not require a considerable amount of your time. They will give you a significant amount of information concerning your rights as well as your obligations as a student borrower.

Tip #5: Budget Finances Like a Pro
The adage when you live to impress when you are in school, you might live like a pauper when you have completed your degree. Quite simply, it is essential that you learn the best way to manage your hard earned money when you are going to school. Frugality can help you reduce the amount of the loan you apply for; as well as reduce the total amount you are going to be responsible for paying back. Here are a few sensible techniques worth taking into consideration:

* Prepare realistic budgets while you are going to school and even after you graduate. This will probably enable you to borrow only what you need, providing you an excellent opportunity to pay back the loans. * Learn how to live as inexpensively as possible. Bear in mind you are only a college student. You can enjoy a much more trouble-free life if you graduate with little to no financial debt. Many excellent tips on how to be cash conscious include finding a roommate, renting a video rather than going to the theater, and taking your lunch from home rather than going out to restaurants.

Thriftiness is the name of the game, so be as thrifty as you possibly can. * For virtually any credit card debts you receive, try to pay off the total amount due. * Set up a financial budget for yourself and stick to it. As long as you are in college, it will be beneficial to see how you can avoid the desire of using credit cards or your student loan money to purchase items that are not contained in your spending budget. Never simply purchase unneeded items. * If at all possible, check out work-study or other part-time job. Finding a part-time job will give you the chance to gain useful specialized experience, as well as providing additional income to cover expenses.

Tip #6: Retain at least Half-Time Enrollment
If you are thinking about half-time enrollment, it is essential to ensure that you are eligible for an in-school deferment. The part-time enrollment usually takes six credit hours. Check with you educational institution requirements concerning the prerequisites for half-time standing.

Tip #7: Make the most of Tax Cost savings
A number of college students who take out student education loans qualify for tax breaks. To determine your status, seek advice from your tax consultant. The breaks are now determined by your qualified college tuition repayments, and in addition, they will help decrease how much Federal tax you have to pay. If you are paying interest on a student loan, it is possible to receive a deduction on your individual Federal tax return for all interest payments. When, you get the advantage of the tax credit as well as the deductions, use the extra tax reimbursement to pay down your student loan, or to take care of the educational expenses.

Tip # 8: Show Me the Money
College graduations is now behind you and your new careers looms just ahead, but guess what; it is now time to repay those student loans. Some loans come due soon after college graduation while other loans allow a bit of time before repayment is due. The bottom line is the loan will have to be paid. Here are some recommendations when you enter the repayment period:

* Submit the loan payment as soon as it is due each month for the full payment amount or even more. This should be done no matter whether you receive a monthly bill or not. *Understand the pay off alternatives offered by your student loan lenders. One option allow you to decrease the loan by making larger monthly payments, and other option allow you reduce your initial monthly bills by making it easier to repay the loan early in your career.

*Contact your lender and inform them immediately of any change in your name or address; if you have questions about your college bill; making payments on time is a problem; loan deferment or forbearance might be needed to help you through a financial crisis. *Make sure you clearly comprehend all mail you receive from your student loan lender and respond immediately when notified. For Further Information concerning your student loans, always remember that the financial-aid office at your school should be your first point of contact. Additionally, there are a number of publications from the Federal and state governments, lenders and college admissions office, libraries and your local bookstore.

Here's to your success!

For me to admit that I am still paying off student loans this late in my life is a source of embarrassment. I refuse to reveal my age but believe me I am too old to still be paying off student loans. Oh, as I recall, President Obama and first lady Mitchell Obama paid off their student loans only a few years ago, so maybe I should not feel too bad. With that said, student loans are, and will continue to be an albatross around the necks of thousands of students and the numbers are growing each and every year. What can be done to waylay this dilemma? Unless you are born into a wealthy family, have parents who set up an annuity to cover the cost of your college education, brilliant enough to win a full scholarship, then student loans will be the way most students will have to go to complete his/her college education.

The loan will be even larger if the students choose to pursue a graduate degree or higher, thus adding to the cost that will have to be repaid. However, because you have to take out student loans to support your education, there is no reason why the loans should not be managed properly! So, student loans yes, inappropriate managing the loans is a definite no, no. Be sure to be frugal and find out the very best way to manage your student loans while still in college. There are ways to ward against the inevitable debt, make the best use of it.

Tag : student loans,student collage loans,federal student loans

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Tuesday, 30 November 2010

Student Loan Consolidation Companies - How to Choose the Right Company For You

Student loan consolidation is a way for graduates to have all their student loans combined into one loan. This loan is handled by one creditor. The creditor pays the multiple loans in full, leaving the student to pay for one new loan. Students no longer need to pay multiple student loans with separate billing cycles, dates or interest rates. They now have one loan and one interest rate, to be paid to one creditor.

When considering loan consolidation. You should do the research. First know the terms of agreement, monthly payments, and interest rates for each loan and creditor before looking for a loan consolidation company or program. When selecting a company or program, make it a point to compare them; know their terms of agreement, interest rates and obligations. Once you have carefully selected a company or program you feel is suitable for you provide them the information you had gathered.

There are Federal and Private Student Loan Consolidations. Federal Student Loan allows a student to have all their Federal loans combined into one new loan.

The government provides Federal programs such as:

o The Federal Family Education Loan Program (FFEL). FFEL will soon be replaced by the Direct Loan program and Pell Grant and the Federal Direct Student Loan Program (FDLP). These programs allow students to have their loans from Stafford Loans, Federal Perkins Loans and PLUS Loans combined into one Federal loan. These are fixed-rate loans backed up by the U.S. Government, offered to students and parents.

o The Federal Direct Student Loan Program (FDLP) was created by the U.S. Department of Education in effort to assist parents and students with their loans.

Private Loan Consolidation is combining private student loans into one new loan. Before considering private loan consolidation, apply for a federal loan, the reason for this is to better maximize federal loans that are available. Private companies such as Sallie Mae recommend it.

Here are several Federal Loans:
o Perkins Loans are funded by the government. They carry a very low interest rate but are need-based, a financial officer would determine if a student is eligible.

o PLUS Loans are for parents of undergraduate students. There are also PLUS Loans for students as well. Payments on this plan will begin once this loan is approved. PLUS loans allow you to take up to 10 years for repayment. Commercial banks and online lenders offer PLUS Loans for both parents and students.

o Stafford Loans offer a low interest rate. They do not raise their interest rates any higher. Stafford loans do not require a student to pay any interest while at school and are not required to pay the loan in the six months after graduation. It offers 10 years for repayment.

Here are a few private companies that offer Loan consolidation:

o Loan Approval Direct offers interest rates as low as 3 percent. Reducing a student's monthly loan to as much as 60 percent.

o SLM Corporation or commonly named Sallie Mae. Sallie Mae offers a range of options depending on the type of school or what education program a student would have. Such programs include Federal Stafford Loan, Parent PLUS Loan, Graduate PLUS Loan, Sallie Mae Smart Option Student Loan, Continuing Education Loan and Career Training Loan.

o Citibank provides programs such as CitiAssist Undergraduate and Graduate Loans, CitiAssist Health Professions; CitiAssist Residency, Relocation and Review Loans; and the CitiAssist Law and CitiAssist Bar Exam Loans. Students receive a 0.25% interest rate reduction in their auto-debit payment program. These programs take up to 20 to 25 years to repay.

o EdFed is another private company. By selecting one of their plans a student can lower their monthly payment by as much as 60 percent. They also provide interest-only payments. The fixed interest on EdFed is the weighted average of the interest rates of the loans a student consolidated, rounded to the nearest 1/8th percent.

Wednesday, 24 November 2010

Make Your Career Using Student Loans With No Cosigner!Make Your Career Using Student Loans With No Cosigner!

Being a student is the one of the most challenging time period for every human. At that time he/she needs to be laborious & dedicated towards his studies. It is because education itself has changed and become advance than it was earlier. New and better Courses are emerging day by day that has a vast scope of employment. Therefore the students are also moving towards those jobs oriented courses. But going for those courses is not an easy task for those who have not sufficient money.

Many of the intelligent students leave their studies in the middle due to the lack of money or unavailability of income of sources. Generally the parents of the students are not that much capable to bear the family expenses and your educational expenses at all. If a student tries to earn some money for their education then it can be but not the sufficient to bear the total educational cost at a time. So students need to go for the student loans.

It is not a big deal to get a student loan for your studies for those who are able to fulfill the requirements of the loan company but it's really challenging for those who are not able to fulfill it. Like for student loans a person is required to be your cosigner. Generally the student loans are cosigner based and require a cosigner. Cosigner is a person who is liable for the repayment of the loan if the student is not able to pay the loan amount at the declared time. One more thing is the credit history of the cosigner. It must be good for the acceptance to be your cosigner. The cosigner should also be in favor to be your cosigner for hassle free loan approval.

Some students are fortunate to find a cosigner but thousands of intelligent students are also who don't have a cosigner for them. They get depressed due to this thing that they can not afford the higher education. But now good news for all those deprived students because now student loans with no cosigner are available to help in your studies.

Student Loans with No Cosigner is a non-cosigner based student loan programs in which you get the loan amount to complete your studies. Generally the College students apply for their undergraduate or post-graduate courses takes these kinds of loans. For them it is also known as College loan with no cosigner. In U.S, there are large numbers of loan providers who are now providing the Federal student loans as well as Private Student loans. Other than these, the reputed universities also provide the scholarships, Pell grants for those students who are excellent in their studies and/or in other activities like sports etc. Some popular federal student loans with no cosigner are:

  1. Federal Perkins Student Loans - Federal Perkins student loans are need based loans. It is provided by the U.S. Department of Education to help the U.S. students to go for their post-secondary education. In this you have to pay 5% as an interest for the duration of 10 years. 9 month grace period is also provided so you can repay on the 10th month of graduating. It is a subsidized loan by government. For Undergraduates the loan amount can be $4,000 per year to a lifetime maximum loan of $20,000 and for graduates, $6,000 to a lifetime maximum loan of $40,000.
  2. Direct Stafford student loans - It is also a government based Stafford (subsidized & unsubsidized) and PLUS loans that is directly available for the students for the selected schools across the U.S. In this no any bank or other guarantee agencies involves and the U.S. Department of education is the lender. 4 kind of repayment plans are available for this program are:
    • Standard Repayment Plans
    • Income Contingent Repayment
    • Extended repayment Plan
    • Graduated Repayment Plan
  3. Once the Direct Stafford Student loans are provided, it will be managed through the Direct Loan Servicing Center of U.S department of Education.

If you are one of those deprived ones then please go for the Student loans with no cosigner to complete your studies and make a bright career.

Friday, 19 November 2010

How to Determine Which of the 8 Types of Student Loans is Best For You

Last year we struggled with the fact that we needed to fund our college students dreams without much money in the bank. When we turned to student loans we had no idea there were so many different types of student loans. Let us walk you through a quick recap of what you can expect from the 8 different types of student loans.

The 8 Types of Student Loans:

* Federal Stafford Loan (2 types: subsidized-unsubsidized)

* Federal PLUS Loan (Parent Loan for Undergraduate Students)

* Federal Perkins Loans

* Bank Loans

* State Loans

* Other unsubsidized Loans (Stafford)

* Loans from other sources

* College Board Extra Credit Loans

We had no idea that you could even attempt to get a federal loan without submitting an application to FAFSA. Once you submit your application to FAFSA you then must wait for your Student Aid Report (SAR). With SAR in your hand now you can go and find a student loan that meets your needs.

Another eye opening experience. To me the interest rates associated with student loans are highway robbery. As you will soon find out, these rates are high but most lenders are competitive with each other.

1. Federal Stafford Loan - Subsidized: (government pays interest until you graduate) most popular loans and available to both undergraduate and graduate students. It's really hard to beat these interest rates.

These rates are for subsidized loans to undergraduate students.

* 6.0% for the 2008-09 school year

* 5.6% for the 2009-10 school year

* 4.5% for the 2010-11 school year

* 3.4% for the 2011-12 school year

* returns back to 6.8% for the 2012-13 school year.

From this example it is best to borrow less money now and wait till 2011 to borrow heavy because of the interest rate decrease. And remember on January 1st of each year you must re-apply through FAFSA to received your student loan for the following year.

2. Unsubsidized Federal Stafford Loan - easy to get and student can pay interest as you go to keep the total loan amount down once they graduate.

***Student Loans Secrets***

Students who are working while attending college, negotiate with your lender to make monthly payments and round up to the nearest tens. If your interest is 8 dollars a month pay 10 dollars which shouldn't be that hard. Any time you can pay on the principal the better.

3. Federal PLUS Loans for Parents - allows the parent to take out the entire cost of students college education. It is not dependent on "how much a parent makes" and it does offer a nice tax break but this could change with a new president.

***Student Loans Secrets***

You can negotiate repayment of your PLUS loan. Chose from graduation date repayments or start 60-90 days after the loan money.

4. Federal Perkins Loans - students who are having financial difficulties should look into the Perkins Loan. The problem with these loans are they are limited, however you will receive a competitive loan interest rate.

***Student Loans Secrets***

Federal Perkins Loans are reported to your credit bureau. Do it right and you will have an excellent credit rating. Default or late on payments will spell trouble. Be very careful.

5. Bank Loans - if you are turned away by the federal government then turn towards a bank loan. These loans are usually a little higher and each bank has different regulations. I'd shop hard before signing on the dotted line. Some banks do offer Stafford Loans, but they are more strict on their policies.

***Student Loans Secrets***

Banks might limit their loans to full time students and repayment options will be limited. However you might find some incentives on re-payments of your student loans.

6. State Student Loans - you will need to visit your local bank to pick up an application. Most states offer a guaranteed student loan but the banks will administer your funds.

***Student Loans Secrets***

These types of student loans are usually more expensive to borrow from when you compare them to federal loans.

7. Additional Unsubsidized Stafford Loan - These types of student loans are determined by the federal guidelines and are reserved for borrowers who fall into the "independent category.

8. Other types of student loans - look at all your options and discuss these with your financial aid advisors at school. Military dependents, corporations and businesses will offer student assistance. Don't be afraid to ask.

Additional Bonus

There is one place that will pay your tuition fees if you can repay them within a year. Affiliated with around 2000 universities, Academic Management Services offer student assistance, but be ready for some expensive rates. These funds should only be used in dire emergencies.

Tuesday, 16 November 2010

Student Loans Help You Afford the High Price of College Tuition

First, the interest will likely be far less than the interest of the market. Most students take out a Stafford loan because they do not require any form of credit that students should qualify for. Like the Perkins and Plus college loans, the Stafford college loans are subsidized, which means that while you are in school, the government will pay the interest of your student loan.

You might also need to get an unsubsidized loan or two. But the good news is that you do not have to pay it until you graduate and start making monthly payments off your loans.

Usually the interest rate on Stafford loans and most loans is low but it is an investment in your future which will likely benefit your lifetime salary. Another benefit of loans is that they also offer the benefit of offering flexible payment arrangements; you can even defer your loans for an extended period of time if you are trying to find employment.

To qualify for any of the federal programs, the student must enroll at least half-time in school and can be either a graduate or undergraduate student. The grade level of the student determines the amount of the loan during a given academic school year. Financial need is not necessary to qualify for federal student loan programs and Stafford loans in particular, can be paid back up to 30 years depending how much was originally borrowed.

Advantages and Disadvantages of Federal Student Loan Consolidation

Student loan consolidation is a process that allows students to combine all federal and private student loans and make one monthly payment. However it may not be an option for every college student approaching graduation day or a recent college graduate. Here's some information about whether federal loan consolidation is right for you.

Bank lenders and consultants dissuade against consolidating private and federal loans together because the new consolidated loan will then be a private loan and you will therefore loose all the benefits that came with the federal loans, such as loan deferment if you decide to pursue graduate school.

So what are the pros and cons of federal student loan consolidation? This question depends partly on how much you owe, how much you've already paid, and other personal financial variables. Here is a brief overview:

Advantages of federal student loan consolidation

1. By consolidating your loans, you make one convenient payment that is also lower in amount. The federal interest rate is also likely to be lower than the combined interest of your original loans.

2. Borrowers can choose from four different payment plans, including an extended payment plan that can extend up to 30 years, depending on the amount that is owed.

3. Thankfully, there's no fee for consolidating your government student loans and there's no credit check when you consolidate your government student loans. 4.There's also no penalty for paying the loan off early.

Disadvantages to Student Loan Consolidation

1. Taking an extended payment plan means paying more interest in the long run. Higher loans mean more interest.

2. The consolidated student loan rate might be higher than the interest rates on your other loans.

3. Consolidating your loans during the six month grace period after graduation results in loosing the remainder of the grace period.

4. Consolidation is not to your advantage if you've already paid off a large of your student loans.

5. Finally, check whether you end up forfeiting the special benefits that come with other federal student loans such as Plus and Perkins loan if you end up consolidating your federal student loans.

What College Students Need to Know about Stafford Loans

Student loans are one of the most popular methods used to help pay for college, but understanding how each one works is confusing. Like the Perkins and Plus Loans, Stafford loans are a type of federal loan program which can either be subsidized or unsubsidized. With a subsidized loan, the government will pay the interest that accrues while the student is in school while the interest with unsubsidized Stafford loans will accrue until the student pays the loan balance.

Depending on the type of Stafford loan, the student can borrow the money either from a bank or a credit union, or from the Department of Education. The interest rate for Stafford loans varies from each year, but is typically lower than the general consumer market, which of course is an important factor when paying back the loans.

How Do Stafford Loans Work?

In order for a student to qualify for Stafford loans the student must enroll at least half-time in school and can be either a graduate or undergraduate student. The grade level of the student determines the exact amount the student is permitted to borrow on the student loan. The amount subsidized is limited to a certain amount that is comparable to the total loan value the student borrowed that same year. Financial need is not necessary to qualify for Stafford loans and they may be paid back within twenty-five to thirty years, depending on the type of Stafford loan and the total amount that was borrowed. In certain circumstances students have various repayment options.

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Saturday, 6 November 2010

College Loan Repayment - The Help You Need

People know how education is important and most people aim for that. People have a goal in life one of that is to finish their college degree of their choice. When a person has a degree or is a college graduate, then for sure you can find prestigious work or job. Although education is a lifelong process that even you already finish your degree, still life should stimulate an avid interest in learning for the sake of personal development.

People all know that college can be a great opportunity for an education to have. People who aim to reach in college have a chance to finish their degree even you don't have enough money to pay for your tuition since there are many ways where you can precede your studies in college such as scholarship or get a student loan. So if ever you have a goal to finish your studies, then you have a chance to finish it.

There are several options for student loan repayment and you can set your loans on a regular repayment plan where in it requires you to pay the same amount each month through the term of the loan you chose. Take note that if you pay higher amount for each month, the term of your loan will be shorter and if ever you can't afford a higher payment and take the lower amount for your monthly payment then expect a longer loan term with a high interest rates.

Although the college loan repayment terms can be set up to fluctuate and you can arrange to pay off your college loans in graduated increments or you can set up your loan to reach your budget income by paying a certain pre-determined percentage of your income each month.

Always bear in mind that when you finish your college and found a job, take time to pay your college loan knowing that although they mean business because of the high interest rates they add to the principal amount of your loan, they helped you with your goal to finish your college and have a good job. Most college loans don't require repayment until at least one year after the graduation.

When you finished your college your goal was granted and the new goal you have is to pay the college loan you borrowed. After your graduation take time to find a job or work since that's one of your aim in life to find a good job. When you find a job and seems you still cannot pay your college loan, and then try to talk to the college loan customer representatives and let her/him know about your current income status so that they can help you with your problem by reducing or lowering your payment plan which you can afford.

Here are some tips for you to know that if you want to pay back your college loan on time, and then be sure to organize your college loan information as you receive it. If you cannot understand, then you ask.

There are grace periods for college loan repayment where in you don't have to pay your loans not until six months or one year the most after you graduated. Do not ignore your debt if you are unable to pay the amounts you owed but instead find a way or try to do some research of government programs to help people pay off their loan money.

Sunday, 6 June 2010

Instant Student Loans- Meet All Your Educational Expenses

Are you a student who has just completed his schooling? Do you want to complete your further studies from a reputed institute? Is the financial condition of your parents not strong enough? There is no need for you get worried, come forward and apply for instant student loans now and meet all your educational expenses without any tension.

Instant student loans are given as per the demand, condition and requirement of the family of the borrower. The amount would be payable only after the student starts earning a salary after finishing his studies. With the help of this money, one can do various things like paying rent of the accommodated flat, buying books, payment of the fees and so on

The credit through this service can be fetched in two ways, an unsecured way and a secured way. The first way is for the ones who do not want to pledge collateral. The finance that falls in the range of £1000 to £25000 can be organized but at a slightly higher interest rate. The reason is that the deal is risky for the borrower due to no security. This credit can be paid back in the duration of 1 to 10 years.

On the other hand, one can pick the secured from, if can give a guarantee like his car, house, stock papers etc to give against the funds. The borrower can get hold of money in the range of £500 to £100,000 that can be settled in the duration of 1 to 25 years.

The paperwork that is involved here is not much.

Even if a borrower is a bad creditor with any of the defaults like CCJs, IVA, insolvency, late payment, payment overdues etc, he does not need to worry. The lender is only interested ones repayment capacity.

Fill the online application and submit it. As soon as the verification gets over, the borrower gets an instant approval. The funds get transferred into his account as fast as possible.

By: Aldrich Alexander

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Wednesday, 2 June 2010

Student Consolidation Loan: How Consolidating Student Loans Can Keep You Out Of Debt

The repayment of Federal student loans generally begins after the borrowing student has completed his or her education and an additional grace period after that. However, due to various reasons students opt for student Federal loan consolidation. However, there is certain eligibility criterion that you must fulfill and a process that you must follow before you can be entitled to Federal debt consolidation of student loans. Again, it is important to note here that such processes and criterion might be reviewed and revised from time to time. So, it’s important that you check on them with the concerned authority.

As per the Higher Education Reconciliation act of 2005, the eligibility criteria for student loan consolidation by FFEL and Direct Stafford loan borrowers has been defined a bit differently. Now, such borrowers will not be eligible for consolidation loan if they are still studying i.e. they are not eligible until the time they leave school or graduate or have enrollment that is less than half-time. For PLUS loan borrowers, the consolidation eligibility begins as soon as the full disbursement has happened.

Private student consolidation loan is a low interest student loan. People having outstanding non-federal education-related expenses can apply for this loan. But he or she should be a holder of US citizenship. If not, the applicant must at least be a permanent resident.

Generally, the minimum loan amount is $10,000 while the maximum amount that can be borrowed is $250,000. The amount also decides the repayment periods. If the amount borrowed is below $40,000, the repayment period is fixed at a maximum of 20 years. However, if you borrow more than $40,000, you can enjoy a longer repayment period of up to 25 years.

This student loan consolidation is quick to get approved. The interest rate on private student consolidation loan is the prime rate and is adjusted on a monthly basis. The interest rate is also dependent on the credit record of the borrower. A good credit record will attract a lower interest rate. As such, the interest rate is variable.

The prime rate is 7.0 percent (at the time of writing this article). Initially the margin may vary between 0 percent and 9.90 percent and is adjusted based on the changes in the margin adjustment index.

This student loan debt consolidation can be utilized to consolidate all debts relating to education, which also include private loans as well as federal student loans. If you want, you can consolidate for more than one child. Spouses have the choice to consolidate multiple loans into a single consolidation loan.