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.

Article Source: http://EzineArticles.com/?expert=Dorit_Sasson

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.